C-PACE Financing of Energy Efficiency Supports Expansion at Health Care Center
- Premier Health Care Management expands present residential care facility – adding 25 new beds and a physical therapy center in 26,000 sq. ft. to be constructed with energy efficiency in mind.
- Greenworks Lending, provides $2.1 million in long-term capital, to fund energy efficient aspects of build-out through Ohio’s Commercial PACE (C-PACE) program
- Ohio C-PACE is state legislated public-private partnership that facilitates funding of energy efficient and renewable capital improvements through special tax assessments.
Sycamore Township, OH – Premier Health Care Management, owners and operators of Kenwood Terrace Care Center at 7540 Keller Rd are utilizing the State’s Commercial PACE (property assessed clean energy) program to secure long term low-cost financing for the energy efficient components of an 26,000 square foot expansion as well as renovations to existing space. The $2.1 million in funding is provided by Greenworks Lending, a private capital provider specializing in C-PACE financing.
Harold Sosna, President of Premier Health Care Management explained that the property was built in 1965 with 28,000 square feet and significantly modernized during a 2002 renovation that added 14,000 square feet. The new addition will add 26,000 square feet that will provide for 25 additional private rooms and a large therapy gym. The renovation will also convert a number of semi-private rooms to private, bringing the 108-bed facility total to 72 private rooms and 18 semi-private rooms.
“Kenwood Terrace is a modern transitional care facility in all aspects of patient care, but with this expansion we are also addressing many of our energy-saving needs,” stated Sosna. “The efficiency measures will conservatively save the organization more than $400,000 over the life of their operation and our residents will be much more comfortable during their stay.”
Energy saving measures engineered into the project range from the roofing, windows, insulation and lighting of the new edition to building controls and even the thermostats used in each room.
“C-PACE allows for care facilities to invest in energy savings infrastructure. For retrofits and expansions alike, these changes ultimately support the comfort of residents while lowering operating costs. It’s a win-win for everyone involved,” stated Chris Meyer, PACE project director for Energy Optimizers USA, the Tipp City firm taking the lead on the energy saving aspects of the build-out.
“Aspects of a renovation that provide significant energy savings versus a prior condition or that are above current code for new construction are able to be financed through Ohio PACE,” explained Chris Jones, Sr. Director of PACE Financing for the Greater Cincinnati Energy Alliance.
“Among the distinct advantages to working C-PACE into a funding plan or capital stack for a project like this is the term of the loan, which matches the useful life of the improvement,” stated Greenworks Lending CEO and Co-founder, Jessica Bailey. “This allows owners to conserve capital while energy savings measures are not value-engineered out.”
The program, which allows for repayment through a special tax assessment on the commercial property, is emerging as an important financial tool for commercial real estate development. The Premier Health Care Management project marks the fifth significant C-PACE financed project in the Cincinnati region by Greenworks Lending. Prior, the firm provided funding for solar and efficiency measures at Kids First Sports Center on E. Kemper Rd, and the Five Seasons Family Sports Club on Snider Rd. In Sharonville, the firm financed efficiency and lighting improvements at two office buildings in the Summit Woods Corporate Center business park.
About Greenworks Lending: Led by several of the industry’s founding policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial property owner investment in renewable energy and energy efficiency projects through state legislated C-PACE (Commercial Property Assessed Clean Energy) programs on a national level. For more information visit www.greenworkslending.com.
About Kenwood Terrace Care Center: Nestled on nine quiet acres between the communities of Kenwood and Indian Hill, Kenwood Terrace Care Center truly offers a “home away from home” for its residents. Beautiful grounds for walking and spacious facilities with an attention to detail are what make Kenwood Terrace a cut above the traditional nursing facility. Located at 7450 Keller Road in Cincinnati, near the Kenwood Towne Center, Kenwood Terrace Care Center offers comprehensive nursing care, including long-term skilled nursing care, rehabilitative, and restorative services. The staff at Kenwood Terrace are committed to providing quality, individualized care that maximizes residents’ independence, self-esteem, and privacy. For more information visit www.premierhcm.com.
About OHIO PACE: OHIO PACE is a program available to commercial, industrial, and multi-family building owners across Ohio. PACE provides access to low-cost, extended term capital to finance energy efficiency improvements. For more information visit www.ohpace.org.