First C-PACE Project in Tennessee Addresses Senior Housing Shortages
Updated: Oct 10, 2022
Nashville area senior living development to be first energy efficiency project in the state’s history to receive third-party C-PACE funding.
CINCINNATI – Donovan Energy and GreenRock Capital are pleased to announce the first commercial Property Assessed Clean Energy (C-PACE) transaction in Tennessee history.
The recipient of Tennessee's first C-PACE financing, a senior living development in the Nashville region, will use funding provided by GreenRock to address the region's continued shortage of senior housing. With an anticipated groundbreaking in August 2022, the inclusion of C-PACE funds in the developer’s financing stack reduces overall costs for qualifying construction projects such as energy efficiency, water conservation, and renewable energy. In addition, resiliency measures such as flood mitigation, stormwater management, wildfire and wind resistance, energy storage, microgrids, and fire suppression are eligible under C-PACE financing guidelines.
“We are elated to be an integral partner, along with GreenRock Capital, for this senior living project. It’s not often that our team can help address environmental and affordable housing challenges for a community in one project. Donovan Energy’s commitment to ESG goals shines through on this one.,” said Donovan Energy CFO Andy Holzhauser.
By lowering the cost of development through C-PACE financing, it is the developer’s and city’s goal to increase the volume of high-quality affordable senior living options in the Nashville area. The $3.5 million in C-PACER capital will specifically cover the cost of multiple energy-efficient project enhancements, including high efficiency windows, LED lighting and HVAC systems. The 15-month project timeline will bring these units on the market in October 2023.
PACENation, a national organization that advocates for PACE financing, provided background support for the transaction. "PACENation applauds our members, GreenRock and Donovan Energy, for being the first to launch a PACE project in Tennessee,'' commented PACENation Acting Executive Director, Mary Luévano. "We also thank the forward thinking Tennessee policy makers who approved the PACE law that will help Tennessee businesses make needed building improvements that save money, create jobs and help grow the local economy -- a win for all."
About Donovan Energy, LLC: Donovan Energy is a Cincinnati-based clean energy project development and finance company. We empower business leaders to redefine their approach to energy with solutions that simultaneously provide superior financial returns and increase the underlying value of their assets and organizations. Our solutions create competitive advantages by decreasing energy costs, simplifying project financing, reducing energy usage, and increasing renewable energy production.
About GreenRock Capital LLC: GreenRock Capital LLC is led by a team of veterans from healthcare, commercial real estate, C-PACE and capital markets, providing best-in-class C-PACE financing to their clients. GreenRock’s C-PACE solutions enable healthcare and commercial real estate owners to gain access to low-cost capital for new construction and building upgrades related to energy and water efficiency, renewables and resiliency projects, creating healthier environments, and meeting environmental, social and governance (ESG) goals. GreenRock principals have closed more than $400 million of C-PACE financing to date. GreenRock is also the sole provider of H-PACE™, a PACE solution solely for the healthcare sector. To learn more about GreenRock’s PACE financing options contact Chris Robbins, firstname.lastname@example.org.