CAMPBELL, Calif. (PRWEB) October 12, 2020
K2 Clean Energy Capital, LLC, a leading developer of Commercial PACE (C-PACE) financing projects, is pleased to announce the closing of a $6 million C-PACE transaction for the construction of a 132-unit, 6-story Student Housing project at 1320 West Jefferson Boulevard in Los Angeles, CA. The project was developed by Elsey Partners, a vertically integrated developer and owner with multiple projects across the USA. This is the largest New Construction Student Housing PACE financing project in CA closed to date.
The project consists of 2 levels of underground parking and a 6-story structure totaling 157K ft2. The facility which includes an exercise room, common study and recreation areas, and a roof deck is located less than 3 miles of downtown Los Angeles and is a three block walk to the University of Southern California campus. The PACE financing will fund multiple measures including seismic strengthening and water conservation measures as well as associated soft costs.
“PACE financed over 15% of the capital stack along with recourse construction debt for combined leverage of 75% on the project” said Stephen Tsu, co-founder and Managing Partner of K2 Clean Energy Capital. “This project is an example of how developers can extend their overall leverage with PACE financing and take advantage of the non-recourse and off-balance sheet benefits of PACE.” After a competitive bid process for the funding of the deal, Mr. Elsey selected Greenworks Lending as the PACE capital source. “We’re very excited to work on this project with such a respected and experienced developer along with a proven capital source.”
“The West Jefferson student housing project is the first of many projects we are planning in CA. We plan on using PACE financing on all our new construction projects as it significantly improves our overall returns on the project” said Bryan Elsey, Founder of Elsey Partners. “PACE was a key part of the project financing and enabled us to reduce our total equity investment in the project. K2’s knowledge of and experience with PACE were critical to the process and in developing the complex capital stack. They brought significant value to the project.”
What is PACE?
Property Assessed Clean Energy is an innovative financing program for energy efficiency, renewable energy, and water conservation measures in building upgrade and new construction projects. C-PACE financing is non-recourse, secured through a special property tax assessment, and can be used on virtually any asset type including industrial, multi-family, hospitality, and retail properties. PACE is a voluntary, free-market financing tool that promotes both energy-efficient building technologies and job creation through economic development.
About K2 Clean Energy Capital, LLC:
K2 Clean Energy Capital, founded by Stephen Tsu and Jonathan Pickering in 2013, is a leading originator and developer of C-PACE retrofit and development projects primarily in the multi-family, industrial, and hospitality industry sectors. Based in the San Francisco Bay Area, the company provides Energy Advisory and PACE Financing Services for clients throughout California and the Western US. K2 is a CSLB licensed general & electrical contractor and CA Finance Broker. For more information please visit: http://www.k2cleancap.com.
About Elsey Partners:
Elsey Partners is a vertically integrated real estate development, construction and property management organization which operates through its Prime Design, Prime Built, and Prime Place entities. The company focuses on the student housing and multi-family space and has completed projects to date throughout the mid-west and California. The company core values are hard work, loving our employees and families, and giving back to our communities and the world.
Elsey Partners has been developing properties for over 10 years and has over $200 million in assets and over 2,300 bedrooms owned and managed. The company has the experience and knowledge to help any property maximize its potential in any market condition. The organization was founded with the dream of giving away 90% of profits annually and is working towards that goal with over 30% of profits currently donated to missional causes in the U.S., India, and Africa.