PHILADELPHIA ENERGY AUTHORITY
FOR IMMEDIATE RELEASE
DATE: NOVEMBER 23, 2020
Lisa Shulock, Philadelphia Energy Authority
Iconic Philly Met Uses C-PACE for Retroactive Financing of $6 Million for Energy Efficiency Investments in Philadelphia
Philadelphia, November 23, 2020 –
The Philadelphia Energy Authority, Enhanced Capital and EB Realty Management (“EBRM”), owners of The Met, announced today the financial close of the first project in Pennsylvania to retroactively use Commercial Property-Assessed Clean Energy (C-PACE) financing. EBRM is borrowing $6,000,000 in C-PACE financing from Enhanced Capital to pay for energy efficiency upgrades for the former Philadelphia Metropolitan Opera House, renovated in 2018.
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.
Until the pandemic hit, “the reopening of The Met has provided an economic boost to the North Broad Street corridor, particularly neighboring restaurants, hotels and businesses,” said Ian McCulley, Director at Enhanced Capital. “Using retroactive C-PACE was a great solution to strengthen the capital stack and repay some higher cost debt. Philadelphia allows retroactive financing up to two years after project completion, and it can be a useful tool for building owners looking to transition from construction to permanent financing.”
“These are not easy times for any of us, especially for cultural institutions,” said Emily Schapira, Executive Director of the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “We are proud to provide a tool like C-PACE that can improve liquidity and reduce costs for commercial properties during this pandemic. C-PACE allowed The Met to pull even more value out of their energy efficient retrofit.”
With this PACE financing, “we are one step closer to curating the North Broad Corridor of Philadelphia into a global example of successful impact development,” said Christopher Cordaro, Vice President at EBRM.
In C-PACE lending in Pennsylvania, existing mortgage holders must consent to the C-PACE financing. In this case, both PIDC and Fulton Financial provided consent. Sue Lonergan, Fulton Bank’s regional president for Southeastern Pennsylvania, said of the consent, “Fulton Bank has been a proud supporter of The Met project, and we’ve seen the positive impact this historic gem has had on the local economy and the community in general. It made sense to use C-PACE to help reduce the owner’s monthly payments to get through this extraordinarily difficult time.”
Philadelphia City Council President Darrell Clarke represents the 5th District, which includes the stretch of North Broad Street where The Met is located. “We are delighted to see that C-PACE not only facilitates investment in energy efficiency, but also as in this case, has helped strengthen an institution that has been a key part of the North Broad Street revitalization.”
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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. For details, visit www.PhiladelphiaCPACE.org.
About Metropolitan Opera House/EBRM:
EBRM is the owner of the Philly Met, a performance venue managed by Live Nation. The Met is located on North Broad Street, just minutes from downtown Philadelphia.
About Enhanced Capital:
Enhanced Capital, with offices in New York City and New Orleans, is a diversified private investment firm focused on financing small and mid-sized companies overlooked by traditional sources of capital. Founded in 1999, many of Enhanced Capital’s funds are backed by institutional capital and finance businesses across targeted investment, asset management and tax credit platforms. In addition, the firm participates in a variety of state and federal public-private investment programs, including the federal SBIC program. For more information, visit www.enhancedcapital.com.