The Philadelphia Energy Authority, Counterpointe Sustainable Real Estate, and Pearl Properties reached agreement on Pennsylvania's largest Commercial Property Assessed Clean Energy (C-PACE) project.
Pearl Properties has received $60 million in C-PACE financing for construction of Harper Square, a 362,000-square-foot multifamily tower overlooking Rittenhouse Square. Once constructed, the 500-foot-tall, 45-story skyscraper will stand as the city's tallest apartment building.
The deal will fund multiple energy efficiency measures, including energy-recovery systems and a building automation system. Overall, Harper Square will use 36-percent less energy than required by the City's building energy code.
"The historic size of the Harper Square deal signals a new level of market confidence in C-PACE," said PEA Director of Commercial Programs Lisa Shulock. "Commercial real estate developers and institutional investors now recognize C-PACE as a stable, scalable financing mechanism that complements traditional capital stacks, all while advancing energy efficiency and sustainability goals."
C-PACE is providing more than one third of the luxury building's $173 million in construction funds. Investment management firm Barings financed the remaining $113 million.
"Pearl Properties has been proud to shape the fabric of Center City through luxury developments that stand the test of time," said Jim Pearlstein, President of Pearl Properties.
"This project is not only a milestone for our company but a landmark for the city a new icon that reflects the strength and vitality of Philadelphia's Rittenhouse Square community," added Reed Slogoff, Pearl Properties Principal.
"Successful closing of Harper Square reflects strong collaboration between CounterpointeSRE, Barings, the Philadelphia Energy Authority, and Pearl Properties," said Eric Alini, CEO of CounterpointeSRE. "By providing full-stack C-PACE and mortgage financing, CounterpointeSRE and Barings streamlined the underwriting process, reduced the weighted cost of capital, and accelerated the project's funding timeline."
Managed by PEA, the Philadelphia C-PACE program provides commercial, industrial and multifamily property owners and developers access to long-term, fixed-rate financing for energy efficiency, renewable energy, water conservation, indoor air quality, and resiliency projects.
Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org or join the next C-PACE Open Meeting on December 11. Register here.
