FIGTREE Reaches New PACE Heights, Issues Private Placement Bonds to Fund 7 New Commercial PACE Improvements in California
Successive PACE Financing Wins Make FIGTREE the First and Only Commercial PACE Provider in California to Fund Multiple Project Rounds That Create Contractor Jobs Using No Public Monies
SAN DIEGO--The commercial PACE experts at FIGTREE Energy Financing are achieving new PACE heights by issuing the largest multi-jurisdictional, non-subsidized PACE bond in the history of commercial Property Assessed Clean Energy in California. The $809,900 bond is financing seven energy efficiency and renewable energy improvements in Fresno and Palm Springs – and brings the total of FIGTREE-financed projects in California's nascent PACE marketplace to over $1.5 million.
PACE (Property Assessed Clean Energy) is a new breed of financing that provides commercial property owners with up-front private-sector capital to realize the money-saving benefits of energy efficiency, renewable energy and water conservation upgrades based strictly on property values – usually 10% of an assessed property's value. FIGTREE finances projects from as little as $5,000 into the millions of dollars. FIGTREE's unique brand of financing is available for commercial, industrial, office, retail, agricultural and multi-family properties of five or more units.
PACE requires no money down, no minimum FICO score and provides for attractive off balance sheet financing that doesn't impact a property owner's credit score or capacity to borrow for other business needs. Simply stated, PACE puts the economic benefits of hundreds of solar, water and energy improvements within reach of most any property owner.
PACE Helps Cities Create Jobs, Improve Local Building Stock & Increase Cash-flow; FIGTREE Drives PACE Adoption Using No Public Monies
"FIGTREE's success in financing these projects is sure to inspire property owners to investigate how PACE can improve their assets, increase cash-flow, provide a hedge against rising energy costs and benefit from any qualifying tax incentives," said PACENow Executive Director David Gabrielson. "We're hoping FIGTREE's California momentum compels municipalities across the US to consider adopting PACE programs like FIGTREE's to jumpstart job creation and clean energy adoption in their respective jurisdictions."
The seven projects financed in FIGTREE's private placement bond range from $7,096 to $224,276 and represent a per-project average of $115,709. They feature solar, cool roof and lighting improvements at three commercial office properties in Fresno; an energy-efficient electrical upgrade for one light industrial property in Fresno; the nation's first hybrid solar PV system at a Palm Springs resort hotel; solar PV to offset electricity use at a Palm Springs commercial office property; and a highly-efficient HVAC system for a residential desert property.
Financing is arranged by aggregating and selling the projects as municipal bonds. FIGTREE was the first in California to successfully initiate this new mode of financing in multiple markets. The financing is repaid over periods of up to 20 years via voluntary assessments on property tax bills. Financing terms run commensurate with the useful life of a specific improvement. If a property is sold, the financing obligations transfer to the new property owner.
"Even in a category this new, not all PACE providers are created equal," noted FIGTREE CEO Mahesh Shah. For each commercial PACE transaction, for instance, FIGTREE obtains an affirmative acknowledgment from the mortgage lender. This eliminates legal risks for property owners and the municipalities in which they do business.
"FIGTREE eliminates risk for all parties involved in PACE transactions – property owners, contractors, mortgage lenders, investors and the jurisdictions in which we're funding improvements," said Shah. "We are judicially-validated throughout the State of California and provide full indemnification to the cities and counties implementing our program," he said.
And FIGTREE is pro-small business. "Because we aggregate projects and then issue them as bonds, we can fund improvements as small as $5,000 to those in the millions of dollars," Shah explained.
PACE funds can be used for materials and labor costs for hundreds of permanently-installed improvements that reduce a building's use of grid-supplied energy or water. Solar photovoltaics (PV) and solar water heating; wind and geothermal; cool roofs; heating and air conditioning (HVAC); energy-efficient lighting; windows, door and elevator upgrades; boilers and chillers; water treatment and conservation improvements, fixtures, xeriscaping and electric vehicle charging stations are some of the projects eligible for financing under the program.
"We're tilling new soil here. Getting to this point has taken considerable energy and tenacity. We've structured this particular bond in a way that will make the packaging and sale of subsequent PACE bonds an indubitably more efficient process," Shah said. "The business model we're forging is to be able to aggregate projects into minimum $500,000 bond amounts and issue them in 60-day cycles," he added. "That is a business model worth banking on."
Endorsed by Businesses, Property Owners, Municipalities and Environmentalists
FIGTREE PACE financing is available via an assessment district established by the California Enterprise Development Authority, a joint powers authority of the California Association of Local Economic Development (CALED), a non-profit who works in partnership with cities and counties across the state. FIGTREE is currently approved in 35 California cities and counties, with more joining the program each month.
FIGTREE's PACE program has been endorsed by the California Building Industry Association, California Business Properties Association, Building Owners and Managers Association (BOMA), Region Builders, Inc., contractors, energy professionals, municipal sustainability and economic development professionals throughout California.
ABOUT FIGTREE PACE: FIGTREE is a full-service, San Diego-based clean energy finance company providing breakthrough, 100% up-front off balance sheet PACE (Property Assessed Clean Energy) financing to help commercial and residential property owners improve their properties and realize the money-saving benefits of energy efficiency, renewable energy and water conservation upgrades with no money down. FIGTREE helps cities and counties create jobs, spur economic development and meet their AB 32 goals utilizing no public monies. FIGTREE is the first company in California to successfully raise private capital for commercial PACE projects via a multi-jurisdictional bond issue. Learn more by calling 1-877-577-7373 or visit us at www.figtreecompany.com.