Category: Green financing

PACE Financing

by Randybaconin Green financing, Real EstateLeave a Comment on PACE Financing

 

Apartment FinancingPulaski County has given green building projects a lucrative green light, and developers of a west Little Rock apartment project have hit the accelerator.

The 50-unit complex, set to rise soon on Aldersgate Road, will be the first project in the county to use a financing option that pays 100 percent of the upfront costs of energy-saving upgrades — an option that lets the capital be repaid over many years as an addition to property tax bills. Energy savings over the payoff period are calculated to cover the cost.

The $6.6 million complex, known for now as the Preserve at Aldersgate, is also the first new construction multifamily project in the nation to adopt PACE financing. The method uses a special improvement district to pay for features that significantly save water and electricity or make other use of sustainable energy.

Learn more about Arkansas real estate financing  here or contact Liberty Realty Capital to discuss your project.

Sustainability: The New Norm in Real Estate Development and Investing

by Randybaconin Commercial Mortgage Lending, Green financingLeave a Comment on Sustainability: The New Norm in Real Estate Development and Investing

Time was when the idea of sustainability in real estate development and investing was a pretty soft notion. Sure, everyone liked the “idea” of reducing carbon emissions, protecting the environment and exploring alternative energy sources, but few were willing to spend money on it. Today, things are vastly different, and it’s the bottom line that’s talking.

A number of factors have driven real estate sustainability into the mainstream, but the greatest influence, whether in the initial design phase or via retrofit, are tenant expectations.

According to McGraw-Hill Construction’s report, “World Green Building Trends—Business Benefits Driving New and Retrofit Market Opportunities in Over 60 Countries,” client demand (35 percent) and market demand (33 percent) were the top two reasons the global green building market grew to $260 billion in 2013, including an estimated 20 percent of all new U.S. commercial real estate projects.

For a commercial building to be able to proclaim sustainability and eco-friendliness is one of its best marketing tools. LEED certification has become a de facto standard for many U.S. cities and class-A buildings. The U.S. Green Building Council-issued LEED certification is awarded to new and renovated office buildings, interiors and operations based on how they’ve adopted best practices in energy, lighting, air quality, water usage and more.

Similarly, the sustainability metrics detailed by GRESB—Global Real Estate Sustainability Benchmark—are increasingly proclaimed by properties.

Government offices for the most part must have LEED certification or other demonstrations of green compliance, according to the U.S. General Services Administration. In other commercial spaces, many tenants simply won’t lease class-A space that’s not LEED-certified.

View entire article here in National Real Estate Investor.

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To discuss commercial mortgage financing needs contact Liberty here.

More Loans Available for Green Multifamily Properties

by Randybaconin Green financing, Real EstateLeave a Comment on More Loans Available for Green Multifamily Properties

Apartment properties are worth more money if they are sustainably designed—and lenders and property buyers are finally beginning to offer terms that reflect that value.

The evidence is just beginning to pile up. For example, the underwriters at Fannie Mae recently began to offer larger loans and lower interest rates to sustainably developed apartment properties

In April, Fannie Mae closed the first loan under its Multifamily Green Building Certification Pricing Break program. It lent $10.2 million to the Station House, a 50-unit apartment community in Maplewood, N.J., that has earned a Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. Fannie Mae rewarded the property with interest rate that is lower than usual by 10 basis points for the permanent loan. That will save the owners of the property, Prudential Real Estate Investors, $101,000 over the life of the loan.

Read the rest of the article at National Real Estate Investor.

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Find out more about commercial lending in Oklahoma.

Solar Power Is Within Reach for Multifamily Owners, Developers

by Randybaconin Green financing, TechnologyLeave a Comment on Solar Power Is Within Reach for Multifamily Owners, Developers

Solar power is becoming a much better investment for owners and developers of apartment properties. The price to buy solar panels has dropped significantly, and today’s photovoltaic panels are much more efficient than just a few years ago. Prices are now so low that a set of rooftop solar panels sometimes makes sense purely as an investment, without any extra cash from subsidy programs or tax credits.

“In many areas there is actually grid parity, meaning you could produce power at the same cost or better than what it costs to buy from the utility,” says Thomas Osdoba, vice president of green initiatives for Enterprise Community Partners Inc.

Read entire article at National Real Estate Investor

Find out more about Liberty at our Youtube page here.

To discuss your funding needs contact Liberty here.

Four Keys to Streamlining Energy Disclosure Compliance

by Randybaconin Green financing, Real Estate

So far only two states and around ten major cities have passed laws requiring commercial real estate owners to benchmark and disclose energy efficiency of their buildings.  A number of other cities are looking to implement this practice as well so some REIT’s and other commercial real estate owners are considering proactively implementing these strategies with their properties.

A very good article detailing these guidelines including a map of the impacted areas was prepared by Karla Zens and published in the National Real Estate Investor and is available to read here.

Zero-Interest Loans to Develop Recycling Infrastructure

by Randybaconin Green financing, Real Estate

Municipalities across the US can now apply for zero-interest loans to develop recycling infrastructure.

The Closed Loop Fund has opened its application process for municipalities and private entities across the country. It plans to invest $100 million over the next five years to support the development of recycling infrastructure and services.

The zero interest loans are repaid from either landfill diversion savings or revenue generated from the sale of recyclable material. Companies that service municipalities may also apply — interest rates will be below market rates.

The founding members of the Closed Loop Fund include Coca-Cola, Colgate-Palmolive, Johnson & Johnson, Keurig Green Mountain, PepsiCo, Procter & Gamble, Unilever, Walmart and Goldman Sachs. It was launched earlier this year at Walmart’s inaugural Sustainable Product Expo to provide municipalities with access to capital to build recycling programs.

The success of the Fund will benefit both the public and private sector, the companies say. Municipalities will be able divert recyclable material away from landfills and into the recycling stream reducing disposal costs, generating revenue, increasing local jobs in the recycling sector and reducing greenhouse gas emissions. Companies will be able to incorporate more recycled content into their manufacturing supply chain, improving the environmental sustainability of products and preserving natural resources.

The types of projects available for financing include curbside recycle carts, curbside organics carts, Recycling facilities (MRF’s), upgrades to MRF’s and anaerobic digesters, among additional infrastructure projects.

The Closed Loop Fund leadership and partners will review applications on a quarterly basis, beginning Oct. 29, and funding will be granted in 2015.