Greenworks Lending Expands Into California
The C-PACE lender has opened new offices in Orange County, Oakland and San Diego, GlobeSt.com has learned EXCLUSIVELY.
“Our capital is specifically allocated to support sustainability measures in commercial and multifamily properties. Because California’s codes and building standards already require many of these sustainability measures, our capital is a perfect fit for the commercial real estate community in this state,” Dana White, director of business development for California at Greenworks Lending, tells GlobeSt.com. “California is also a natural next step in Greenworks’ expansion based on the state’s growing policies that encourage energy efficiency, sustainability, water conservation and building resiliency.”
California is primed to take advantage of C-PACE financing capital. In addition to building codes, the state has also implemented policy goals to encourage sustainability. “Some of these actions include policy goals to increase renewable energy production to 50%; to double energy efficiency savings at existing buildings; and to promote cleaner zero vehicle or near-zero emissions,” says White. “In addition, the 2019 Title 24 building code update includes new standards to improve the energy efficiency of newly constructed buildings and additions and alterations to existing buildings.”
As developers aim to reach these challenges, C-PACE financing can prove to be an important and beneficial source of capital. “Greenworks’ C-PACE financing gives these owners the ability to finance up to 100% of these green initiatives via a public-private partnership, through which property owners use a portion of the project savings to pay for the funding via a special assessment charge added to their property tax bill,” adds White.
It isn’t surprising that Greenworks landed in San Diego, Orange County and Oakland for its first offices. The company is focused on major MSAs with rapid growth, population ground and strong demand across asset classes. “Coastal markets can be extremely expensive areas in which to own and operate commercial properties, making C-PACE a welcome financing option in these markets. It reduces the cost of capital, while dramatically improving financial returns,” says White. “In addition, the transparent and rapid approval process is a boon in high barrier-to-entry markets like these, which are regulation heavy and can typically face significant delays.”