Baltimore-based MD Energy Advisors provided a $3 million commercial property-assessed clean energy (CPACE) loan to Garver Development Group to fund significant property upgrades and a comprehensive transformation of the former Port City Press printing facility in Pikesville, the group announced Monday.
CPACE is a financing mechanism that can be used to finance energy and water-related improvements of a real estate project. New construction and gut rehabs are strong applications for the product and CPACE will reduce the weighted average cost of capital for building owners when compared to preferred equity and or mezzanine financing. CPACE is fixed rate, long term, non-dilutive and non-recourse with rates routinely under 6% on a 20 to 25-year term and amortization.
Garver Development has initiated construction activities on a strategy that will convert approximately two-thirds of the building into a use that will support self-storage, as well as to store cars and small recreational vehicles. The balance of the space, representing approximately 32,000 square feet of space, will be transformed into an area that can be used for various light industrial and warehouse applications. The Baltimore-based firm is also planning to construct approximately 15,000 square feet of drive-up storage units on a large existing parking lot.
MD Energy Advisors is a customer-centric energy management, marketing and efficiency firm providing energy solutions to utilities, private companies and residential clients. The company identifies opportunities to reduce energy-related operating expenses, offers strategies that improve environmental impact and provides financial vehicles to help implement these strategies.
Garver Development Group provides a comprehensive range of commercial real estate services including turn-key development activities and owner’s representative work that involve the oversight of projects in the planning, preconstruction or under construction phase. The overall mission of the company is to protect its partners’ interests and drive value creation.