MD Energy Advisors has provided a $1.55 million commercial property-assessed clean energy (CPACE) loan to Equity Warehouse, LLC to fund major interior and exterior physical plant improvements to and the expansion of Gaslight Square, an 80,000 square foot commercial office and industrial complex recently acquired by the local real estate development and investment company. The asset, which is situated at 1401 Severn Street in Baltimore City, consists of five single-story and two-story buildings and is presently 40% leased to three tenants. Ian Horowitz and Dan Mathe are co-founders and partners of Equity Warehouse.
CPACE is a financing mechanism that can be used to finance energyand water-related improvements of a real estate project. New construction and gut rehabs are strong applications for the product and will reduce the weighted average cost of capital for building owners preferred equity and or mezzanine financing. It is fixed rate, long term, non-dilutive and non-recourse with rates routinely under 6% on a 20 to 25-year term and amortization.
“Our positive experience with MD Energy Advisors with a CPACE loan for White House Manor Apartments provided the impetus to proceed with a second financing program,” explained Ian Horowitz of Equity Warehouse. “This loan will significant benefit the returns to our investors since it will reduce the amount of capital we need to raise for our intended improvements and project expansion. Among our goals is to implement programs that significantly improve the sustainability features of this asset and to create a healthy and energy-efficient environment.”
Beginning within the next several of weeks, Equity Warehouse intends to stabilize Gaslight Square and implement improvements focused on the installation of modern HVAC, plumbing and electrical systems, the replacement of a new roof and windows to secure the building envelope and site improvements that will upgrade the storm water system and increase parking. The development group will also add 30,000 square feet of new office space.
Gaslight Square was constructed in the late 1800s and originally functioned to convert coal into gas by Equitable Gas Works.
“This project is ideal for professional services firms interested in a campus-like setting close to the central business district of Baltimore City, with immediate access to Interstates 95, 395 and MD Route 295,” Horowitz added.
Headquartered in Baltimore, MD Energy Advisors is a customer-centric energy management, marketing, and efficiency firm providing energy solutions to utilities, private companies and residential clients. The company identifies opportunities to reduce energy-related operating expenses, offers strategies that improve environmental impact and provides financial vehicles to help implement these strategies.
“Equity Warehouse does a tremendous job of identifying and adding value to real estate projects that benefit both its investors and end-users and MD Energy Advisors is extremely proud to partner in a second project with the company,” stated Jason Schwartzberg, President of MD Energy Advisors. “The group has devised a creative plan to elevate the physical characteristics and interior environment of Gaslight Square, with a focus on improving its sustainability. The CPACE program provides the ideal financing mechanism to allow the efficient execution of this program.”
For additional information about MD Energy Advisors, visit www.MDEnergyAdvisors.com
