Lever Energy Capital Funds Commercial Real Estate in Arkansas
Little Rock, AR (November 19, 2018) - Lever Energy Capital, a Denver-based Commercial Property Assessed Clean Energy (C-PACE) financier, announced today it has funded the sustainable retrofit of a commercial building in Little Rock through Pulaski PACE. The building is the headquarters for Entegrity, a sustainability and energy services company specializing in the implementation of energy conservation and renewable energy projects.
“We are working with Pulaski PACE to bring this innovative and immediately accretive financing tool to Arkansas to fund commercial real estate projects,” noted Lever Energy Capital President, Mark Boyer. “We are thrilled to have helped Entegrity convert their headquarters into an example of the kinds of sustainability projects they implement while providing a financial benefit to the company and building owner. This is a good example of how we help our clients - commercial building owners and developers - transform their buildings into assets that are immediately accretive, efficient, sustainable and comfortable for tenants.”
The project, located at 1403 6th Street in the East Village neighborhood near downtown Little Rock, is a 14,000 square foot office and warehouse building that was converted to net-zero, producing enough energy on-site to meet the building’s energy consumption. The project was financed retroactively, meaning the building owner completed the project and then applied for C-PACE financing to receive repayment for sustainability improvements to the building.
Through C-PACE financing, the building owner received an inflow of cash and unlocked average utility and maintenance savings of $43,000 per year for 25 years. Annual savings from the building improvements will pay for and ultimately exceed the annual C-PACE financing payments, immediately increasing the property’s value by as much as $300,000 and more over time. Among the upgrades are smart LED lighting and controls, new high-performance electrochromic glazing, high efficiency HVAC equipment, infiltration reduction, and a solar array.
C-PACE, also known as PACE for commercial properties, is unique in that it offers building owners long-term, fixed rate, low cost financing payments that stay off the balance sheet because the payments are made over the long term through property taxes. C-PACE is currently in 21 states for a variety of eligible energy efficiency, renewable energy, water conservation, and hazard mitigation upgrades.
“Utilizing C-PACE was a logical choice for financing our high performance building systems,” according to Matt Bell, an owner of Entegrity and the building. “C-PACE financing allowed us to shift savings from traditional operating expenses for utilities such as gas and electricity to a fixed property assessment resulting in a positive cash flow and increased net operating income. As a result of C-PACE financing, our investment in energy efficient building systems and solar power generation allow us to offset 100% of our utility cost and uses these savings to service the C-PACE assessment.”
Lever, which was founded in 2017, is a leading provider of C-PACE financing for commercial real estate. With $500M in capital to deploy in markets across the United States, the company takes an innovative, scalable approach to providing clients and partners with a reliable source of accretive capital. Lever is excited to have entered the Arkansas market with such a noteworthy net-zero conversion project and has more C-PACE financings in process with additional financing partners and property owners in the state.
In 2013, Arkansas passed legislation authorizing local governments to create PACE districts. The Pulaski County Energy Improvement District was created in 2015 by the Pulaski County Quorum Court to help create jobs, retain wealth, and grow Pulaski County’s economy by enabling Property Assessed Clean Energy (PACE) financing. Pulaski PACE provides commercial property owners the opportunity to realize utility and maintenance savings through facilities improvements that are financed up to 100% and repaid as property tax assessments. The assessment mechanism has been used for decades nationwide to access low-cost and long-term capital to finance improvements that meet a public purpose.
“This is the perfect example of government and industry partnering to create sustainable communities through revitalization of historic properties, increasing economic activity, and utilizing energy and cost-efficient systems,” said Pulaski County Judge Barry Hyde. “We are proud of the collaboration between Pulaski PACE and Lever Energy Capital. I hope to see the rest of Arkansas’ counties open the door to PACE financing and the economic and environmental benefits that it offers.”
About Lever Energy Capital
Lever Energy Capital is a Denver-based Commercial Property Assessed Clean Energy (C-PACE) financier. They help commercial real estate owners optimize their assets and improve their bottom line through low-cost Commercial Property Assessed Clean Energy (C-PACE) financing. Among the largest C-PACE funds in the industry, Lever efficiently sources and funds deals wherever C-PACE programs exits. To learn more about Lever Energy Capital, visit their website at https://www.leverenergycapital.com/.
About Pulaski PACE
In 2013, Arkansas passed legislation authorizing local governments to create PACE districts. In 2015, Pulaski County established the Pulaski County Energy Improvement District and the Pulaski PACE (Property Assessed Clean Energy) program to allow commercial property owners to fund and install approved energy efficiency, renewable energy and water conservation improvements by attaching the improvement cost to their property tax bill. Each energy savings project is meant to provide the property owner with a cash-flow positive energy savings solution.
Entegrity is a sustainability and energy services company specialized in the implementation of energy conservation and renewable energy projects. With a total of 8 offices across the county and over 30 projects completed internationally, Entegrity is uniquely qualified to deliver innovative and sustainable solutions to optimize building performance. To learn more about Entegrity, visit their website at https://www.entegritypartners.com/.