June 16, 2021
NEW YORK – Mayor Bill de Blasio today announced the completion of a $ 89 million loan granted to 111 Wall Street under the NYC Accelerator PACE funding program to increase 900,000 square feet of office space for efficiency, resilience and compliance with local laws to retrofit. The project is estimated to save an estimated $ 2.5 million in annual energy costs and avoid $ 750,000 in annual Local Law 97 fines starting in 2030.
This innovative program, administered by New York City Energy Efficiency Corporation (NYCEEC) on behalf of the city, will help property owners meet the city’s ambitious carbon emissions targets under the Climate Mobilization Act by providing access to low-cost, long-term capital offers for energy efficiency and retrofitting of renewable energies.
“If you can upgrade a building in New York City, you can do it anywhere,” said Mayor Bill de Blasio. “Today I would like to send a clear message to all building owners in our five districts – you have an important financial instrument to convert your property to energy efficiency and sustainability. New Yorkers depend on you to help us tackle the climate emergency by drastically reducing CO2 emissions from buildings. “
“The builders are not alone in the fight against climate change,” says Ben Furnas, Director of the Mayor’s Office for Climate and Sustainability. “The NYC Accelerator PACE funding program is an essential tool to decarbonise buildings on a large scale while shifting the cost burden from property owners. Our team and partners at NYCEEC are ready to help building owners and lenders finance green power projects, reduce operating costs and meet local government requirements while reducing carbon emissions and improving tenant comfort. “
By 2030, the program aims to create 689 green jobs and reduce 447,600 tonnes of CO2e from our atmosphere, which corresponds to an annual use of 97,344 cars.
With the loan, builders can finance up to 100% of the project costs. Unlike traditional financing, loans provided through the NYC Accelerator PACE financing program are repaid in installments by charging the property’s tax bill. Loans are measured based on projected energy cost reductions so that building owners can see savings from day one.
The program is open to any commercial or apartment building with three or more units, including tax-exempt nonprofit, religious, healthcare, and industrial properties that meet the requirements and eligibility.
NYC Accelerator Efficiency Advisors can help building owners connect with qualified lenders looking to offer PACE funding. Financial institutions wishing to make PACE loans can respond to the pre-qualified lender application for qualifications.
“The climatic challenges our city will face in the coming years are daunting and we must continue to take aggressive action to help New York City owners reduce greenhouse gas emissions from their buildings,” said Building Commissioner Melanie E La Rocca. “Today’s announcement shows that PACE funding remains a key element in driving energy efficiency retrofit projects across our city’s building stock.”
“Increasing energy efficiency in buildings across the city is of paramount importance in the ongoing decarbonization efforts wherever possible to address climate change,” said Sherif Soliman, NYC Treasury commissioner. “The NYC Accelerator PACE Funding Program is a creative way to help New York City real estate owners seek to reduce carbon emissions by upgrading their energy systems, and the Treasury Department is pleased to be helping with funding mechanisms by facilitating loan payments through property tax bills. “
“From towering skyscrapers to iconic brownstones, New York City has always been shaped by its buildings,” said Jainey Bavishi, director of the mayor’s climate resilience office. “To address the ongoing climate crisis, we are working to ensure that all New Yorkers have efficient, sustainable and resilient places to live and work. PACE funding is a proven tool to help building owners reduce their emissions. Now the legislature in Albany should expand this program in order to be able to finance retrofits for climate adaptation such as flood protection and the installation of emergency power systems. ”
“The 111 Wall Street renovation is particularly exciting as New Yorkers are back to work and visitors are returning to the financial district,” said Fred Lee, co-CEO of NYCEEC. “PACE has given the development team access to additional capital by investing in long-lasting, energy-efficient systems so that the project is part of the city’s pandemic recovery and energy transition.”
“It is special to be the first C-PACE transaction in the Big Apple,” said Mansoor Ghori, CEO of Petros PACE Finance. “The fact that the first transaction broke the record for the largest C-PACE ever completed is a testament to the tremendous potential the city has for C-PACE and the wisdom of the mayor and city leadership regarding the city Climate change. We thank both the Mayor’s Office, particularly the Office of Climate & Sustainability, for supporting this project, and NYCEEC for their great partnership in this process of opening up this market. “
“With these improvements, 111 Wall Street is well positioned to meet New York City’s needs and attract today’s tenants looking to rent buildings with pioneering green designs and environmental sustainability,” said Michael Gontar, chief investment officer, Wafra Capital Partners. “We chose to work with Petros because their industry-leading experience and execution skills gave us the confidence to complete a C-PACE transaction of this magnitude.”
“PACENation is excited to welcome New York City to the global community of cities and counties that have accepted PACE as a financing option for property owners,” said Colin Bishopp, Executive Director of PACENation. “Over the past decade, PACE funding has proven to be an exceptional policy tool to create local jobs, reduce carbon emissions and increase resilience to extreme weather conditions. With PACE up and running, New York City buildings will be healthier, more efficient, and more. Congratulations to everyone involved in the opening project at 111 Wall Street. “
“New York City’s PACE program is a turning point for commercial property owners looking to upgrade their property while saving energy and operating costs,” said Cliff Kellogg, executive director, C-PACE Alliance. “PACE commercial finance is entirely privately funded and can fill a project finance gap at a lower cost than many alternatives. Congratulations to the city and NYCEEC for bringing this alternative financing to the Big Apple, the largest commercial real estate market in the country. “
“New York continues to lead by example in tackling our climate crisis,” said Richard Yancey, FAIA, executive director, Building Energy Exchange. “The PACE funding will provide building owners with an important tool to make long-term investments in modernizations that deliver deep carbon and energy savings while creating healthier places to work and live.”
“We are very excited about the introduction of PACE in NYC. It is an essential tool to fund the decarbonization of buildings needed to meet our climate goals and drive a green recovery, ”said John Mandyck, CEO of Urban Green Council.