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First Pennsylvania C-PACE Deal Inked: $1.5 Million of Energy and Water Efficiency Investments in Philadelphia

PHILADELPHIA ENERGY AUTHORITY

FOR IMMEDIATE RELEASE

DATE: JULY 17, 2020

CONTACT: Maryrose Myrtetus, Philadelphia Energy Authority, 215-431-5641 (cell), mmyrtetus@philaenergy.org

Philadelphia, July 17, 2020 –

The Philadelphia Energy Authority, Twain Financial Partners and SHIFT Capital announced today the financial close of the first project in Pennsylvania to use Commercial Property-Assessed Clean Energy (C-PACE) financing. SHIFT Capital is borrowing $1,500,000 in C-PACE financing from Twain Financial to pay for energy and water efficiency upgrades to a new mixed-use development in the Kensington-Harrowgate neighborhood of Philadelphia.

SHIFT Capital’s project, J-centrel, is key to the company’s unique approach to urban development. J-centrel provides 30,000 square feet of ground floor commercial space, including retail storefronts, spaces for entrepreneurs and artists, and an accelerator for local businesses. It also features 116 converted loft-style apartments. The C-PACE financing is being used to pay for measures that will reduce the operating costs in the commercial spaces, including LED lighting, window replacements with insulation and low-e glazing, energy recovery units, variable refrigerant flow heat pumps, and low-flow plumbing. Together, the measures are expected to reduce the building’s total carbon footprint by 2,700 metric tons of CO2 equivalent.

Under the leadership of Councilmember Derek S. Green (At Large), Philadelphia City Council passed legislation enabling C-PACE financing in Philadelphia in June 2019. “I am so proud to see the state’s first C-PACE deal close in Philadelphia. C-PACE is a game-changing tool that brings private sector investment to our city to create jobs, fight climate change, improve public health and help businesses save money,” said Green. “I’m proud to have led the charge to establish this important initiative in partnership with the Philadelphia Energy Authority and I look forward to more C-PACE projects to come.”

C-PACE was enabled in Pennsylvania in 2018 through legislation sponsored by State Senator John Blake (D-Lackawanna County). “We worked for years in Harrisburg to finally get C-PACE across the finish line because we understood the economic and environmental benefits of this creative, market-driven funding mechanism to enable businesses to make important water conservation and energy efficiency upgrades,” Sen. Blake said. “I hope and expect that this $1.5 million investment is the first of many impactful C-PACE projects across the Commonwealth. I applaud the work of the Philadelphia Energy Authority for initiating the first C-PACE project in Pennsylvania.”

 “SHIFT Capital is excited to use C-PACE for our J-centrel project. C-PACE was a key tool for rounding out our capital stack, reducing ongoing operating costs, and making our building more green,” said Brian Murray, CEO and Founder of Shift Capital, the developer of J-centrel. “C-PACE provided us with competitively-priced financing and a long-term repayment schedule to allow the energy efficiency improvements for the commercial portion of the project to be cash flow positive right away.”

“Twain Financial is thrilled to be the capital provider for the first-ever Pennsylvania C-PACE project,” said Paul Thompson, Business Development Officer at Twain Financial. “Bringing C-PACE to a new state creates an opportunity for additional developers to see the positive impact these projects will have on their communities. As a PACE investor in other markets since 2016, we have seen how C-PACE allows projects to overcome challenges that have hindered adoption of energy efficiency and related projects in commercial buildings.”  

Emily Schapira, Executive Director of the Philadelphia Energy Authority, the Philadelphia C-PACE Program Administrator, said, “With this project, Pennsylvania C-PACE is open for business. Philadelphia is leading the charge in building a robust, equitable clean energy economy, and we are proud to be home to the state’s first C-PACE deal.”

Today, PEA also announced the launch of a new website for the Philadelphia C-PACE program, PhiladelphiaCPACE.org.

About the Philadelphia Energy Authority

The Philadelphia Energy Authority (PEA) is an independent municipal authority created in 2010 to advance energy affordability and sustainability for the City. PEA has facilitated over $136 million in clean energy projects in Philadelphia since launching the Philadelphia Energy Campaign in 2016, creating more than 1,300 jobs.  As Program Administrator, PEA reviews and approves applications, manages the billing and lien processes, engages in market education and supports the growth of the Philadelphia C-PACE program.

About Philadelphia C-PACE

Commercial Property-Assessed Clean Energy (C-PACE) financing allows commercial property owners to borrow money for energy efficiency, renewable energy, and water conservation projects. Repayments are made via a special assessment similar to a property tax assessment. Key features include: 100% of project costs can be financed; repayment terms are up to 30 years; the special assessment stays with the property in the event of a sale.

For more information, visit www.philadelphiacpace.org.

About SHIFT Capital

SHIFT Capital is a solutions-based neighborhood investment group who takes an integrated approach to developing equitable inclusive communities that thrive. SHIFT is a Certified B Corporation® who deploys development strategies in underserved neighborhoods that align patient capital with long-term community success to help catalyze shared prosperity, build wealth for the existing community, and strategically preserve affordability and minimize displacement.

About Twain Financial

Twain Financial Partners is an investment management firm located in St. Louis, Missouri with over $4 billion in assets under management within the public-private partnership sector. The firm works with a wide variety of investment types, specializing in tax credit, structured debt and real estate transactions. Twain works closely with financial institutions, corporations and high-net-worth individuals to structure and manage investments that offer both attractive economic return and social benefits.

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