Largest C-PACE Deal in Missouri to Date
St. Louis-based RAHILL Capital has closed on $10.1 million in Commercial Property Assessed Clean Energy (C-PACE) funding for the renovation of the former Missouri Theater building in Grand Center into the planned 145-room Hotel Angad and headquarters for Bull Moose Tube. RAHILL Capital served as the owners’ representative in securing the C-PACE funding, which will be used for achieving efficiency improvements in lighting systems, windows and heating and cooling equipment on the 12-story project. Anne Murphy Hill, owner of RAHILL Capital, was instrumental in securing the C-PACE portion of the project’s funding, while the City of St. Louis Clean Energy Development Board approved the funding.
“This is the largest C-PACE funded commercial real estate construction or renovation project in the St. Louis area to date and one of the largest nationally,” Hill said. “The popularity of this public/private energy efficiency financing package continues to grow among real estate developers and property owners here and across the country.”
In addition to the Hotel Angad, the renovated building next to Powell Hall in Midtown will also feature a restaurant, rooftop bar and 25,000 square feet of office space for Bull Moose Tube’s 75 corporate employees.
C-PACE legislation in Missouri allows for building improvements that result in utility savings to be funded by private capital and repaid via a long-term tax assessment. C-PACE can be used to fund a wide variety of energy improvements, from HVACR and controls, lighting and electrical systems to building envelopes, plumbing, tuckpointing, drywall, insulation and more. State legislation has no cap on the amount of C-PACE funding, and most capital providers are comfortable with a 20-25 percent loan to value.
With over $200M in engagements in multiple states, including Missouri, Texas, California, Colorado and more, RAHILL Capital is already the leading developer and funder of C-PACE deals in the country. RAHILL partners with C-PACE providers to deliver property assessed energy improvement financing via the owner’s property tax bill at no upfront cost to the owner and with no personal guarantees.
“C-PACE is long term, low cost financing that can partner with mortgage debt and other incentives to close the gap in the capital stack,” Hill added. “We can take a customer’s original construction design and determine what aspects of the current design can qualify for C-PACE in order to maximize the qualified C-PACE funding. The possibilities go well beyond typical energy improvements.”
St. Louis area C-PACE deals closed to date by Rahill Capital include The Lafayette Lofts in Soulard, 4534 Olive LLC in midtown, and Cambridge Engineering’s headquarters in Chesterfield.
Founded in July, 2016 by Anne Murphy Hill and Robert J. W. Hill, RAHILL Capital works with Property Owners and Developers looking for a cost effective, streamlined process of securing C-PACE funding.