A $40 million first phase of the GJ Lofts redevelopment in Bloomington is using $5.8 million in Commercial Property Assessed Clean Energy (C-PACE) financing as part of its capital stack, according to a case study document from PACE Equity Finance.
The document states that GJ Lofts is a two-phase historic redevelopment of the original State Farm Headquarters in Bloomington, Illinois, that will transform the property into 183 multifamily units and three retail units. Phase 1 includes 57 multifamily units, retail space leased to Starbucks, a food hall, and restaurant space. Phase 2 is expected to begin following completion of Phase 1 and will include the remaining 126 multifamily units and two retail units.
According to the case study, the sponsor, Urban Equity Properties, sought long-term, competitively priced capital to support Phase 1 of the historic redevelopment while maintaining flexibility across the broader capital stack. The document notes that the project required a financing partner that could move quickly, structure around project cash flows, and provide certainty of execution given a phased funding timeline and construction-period cost considerations.
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The capital stack for Phase 1, as outlined in the document, includes 18% C-PACE financing, 31% construction loan, 20% owner equity, 16% Federal Historic Tax Credits, 9% land equity, 4% State of Illinois forgivable loan, and 2% city loan. The C-PACE financing provided by PACE Equity Finance is described as fixed-rate, long-term, and competitively priced, with a three-year interest-only period to provide additional flexibility during lease-up.
The case study identifies the project as a multifamily and retail asset with 189,000 square feet and lists funded measures including building envelope, electrical and lighting, elevator, HVAC, and plumbing. The Illinois Energy Conservation Authority is named as the administrator. The document also notes that this is the second project with PACE Equity Finance for Urban Equity Properties and includes a statement from Jeff Orduno, chief operating officer and chief legal officer of Urban Equity Properties LLC, regarding the company’s experience with PACE Equity Finance.
PACE Equity Finance describes its role in the document as providing C-PACE financing as a “strategic advantage,” citing an upfront structuring and sizing process to ensure compliance with C-PACE requirements across more than 80 jurisdictions, a vertically integrated execution platform, and no reliance on syndication or capital markets take-out. The document lists that PACE Equity Finance has completed more than 200 projects and is backed by a $26 billion balance sheet.
This brief was generated from a public document. Source: https://www.mcleancountyil.gov/DocumentCenter/View/32610/GJ-Lofts-Redevelopment
