Anchorage, AK – Today, the Municipality of Anchorage announced that the first Commercial Property Assessed Clean Energy (C-PACE) loan has closed between RIM Investments and Nuveen Green Capital for a $680,000 retrofit of a four-story building. This marks the city and state's first C-PACE financing, which is used to fund clean energy measures in commercial real estate projects.
“Projects and investments like these demonstrate real progress in our city," said Mayor Dave Bronson. “We hope this is the first of many clean energy projects in Anchorage financed through this innovative program. It's an exciting time to be in business!"
“This is a great example of a public-private partnership, as well as Alaska joining other states to use this innovative financing tool to fund economic growth and improve our building stock," said Melanie Lucas-Conwell, Anchorage C-PACE Program Administrator. “It was also exciting to work with a local lender (Northrim) and a specialized firm (Nuveen Green Capital) to bring this first-in-the-state C-PACE loan to fruition. RIM Investments' project is paving the way for future C-PACE projects in Alaska. This is good for our local economy, jobs and business growth."
The Municipality launched the state's first C-PACE program in April 2021 to facilitate the financing of clean energy projects in commercial buildings. C-PACE makes energy-efficient upgrades to Anchorage's commercial buildings easier to finance. The financing arrangement attaches the payment obligations to the property as a lien, rather than to the borrower, and reduces collection risks for lenders. C-PACE financing is intended to cover the full costs of eligible improvements, with little or no up-front, out-of-pocket cost to the owner.
Larry Cash, RIM Investment Owner and RIM Architects Founder, has been an advocate of C-PACE since the first legislation passed in 2017. “Working with Nuveen Green Capital to embark on this first-ever C-PACE financing in our state was a great experience as their team brought an array of expertise to help coordinate with the senior lender, Northrim Bank, the engineer, as well as with the program administrators," said Larry Cash. “As the first C-PACE loan recipient in Anchorage, we want to inspire local businesses to reduce their carbon footprint. This program makes it easier for companies to upgrade their buildings to be more energy efficient."
Michelle Klouda, Principal at RIM Architects, followed, “As stewards of the future of design and architecture, it is important that we support and usher in technologies that will have an impact in the world of buildings. Here at RIM Alaska, we look forward to being able to implement and experience energy efficiency and renewable energy improvements on 645 G Street. My hope is that this firsthand experience will allow us the opportunity to show our clients and the community that energy efficiency and renewables are attainable and accessible. Good things will come with this, and it is just the start."
“We are thrilled to see the C-PACE market continue to expand and are proud to finance the first C-PACE project in Alaska. We look forward to funding many more projects in the state through this innovative financing mechanism that saves property owners money while supporting the local economy, as well as the environment," said Aidan McLaughlin, Nuveen Green Capital Director of Originations.
“Northrim Bank seeks to be at the forefront of local development and innovation," said Mike Huston, President at Northrim Bank. “Working with RIM Investments, Nuveen and the Municipality of Anchorage, we're excited to bring the first C-PACE financing to Anchorage and Alaska, paving the way for future energy efficient projects to enrich our community and local economy."
The four-story building, known as the RIM Building, has been owned since 2002 by RIM Investments LLC. Located at 645 G Street in downtown Anchorage next to City Hall, the building is occupied by United Parcel Service, McGinley's Bar & Restaurant, as well as RIM Design, RIM Investments LLC, and RIM Architects.
Through $680,000 in C-PACE financing, the retrofit of the RIM Building will incorporate energy-efficiency upgrades, including: “setback" thermostats that lower the temperature when the building is unoccupied and heating system upgrades; all new LED lighting; a new hot water heater, as well as the installation of a new combined heat and power (CHP) system, which will reduce the building's reliance on grid electricity. With the planned energy efficiency measures, RIM is projected to realize an estimated 42% reduction in energy costs annually.
About Alaska C-PACE
The Alaska C-PACE Act was signed into law in August 2017, allowing local governments to create and manage C-PACE programs. In April 2021, the Municipality of Anchorage launched the first C-PACE program in the state and is working with other jurisdictions to set up similar C-PACE programs, using the statewide templates. More information can be found at www.muni.org/CPACE.
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for $1.2 trillion in assets under management as of September 30, 2021. Established in 2015 by the C- PACE industry's founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water and resiliency performance of their property. For more information, visit www.nuveen.com/greencapital.
About RIM
RIM is the trusted design partner providing inspired solutions, enriching communities across continents. Together, we shape the future. With clients in mind, we bring superior quality, unwavering integrity, creative energy, authentic collaboration, and mutual prosperity. www.rimarchitects.com
About Northrim Bank
Northrim Bank is an Alaska-based community bank with 17 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Ketchikan, and Sitka, and loan production offices in Kodiak and Nome, serving approximately 90% of Alaska's population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska's economy and its signature “Superior Customer First Service" philosophy. Pacific Wealth Advisors, LLC is an affiliated company.
Media Contacts:
Melanie Lucas-Conwell, Anchorage C-PACE Program Administrator, melanie.lucasconwell@anchorageak.gov, 907-343-4898
Hans Rodvik, Deputy Communications Director, hans.rodvik@anchorageak.gov, 907-570-6646
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