Prologis Press Release
Clean Fund Completes $1.4 Million PACE Financing for Prologis’ Corporate Headquarters
Property Owner – Prologis, Inc., world's leading owner and operator of industrial real estate
Project vendor – Johnson Controls, Inc., one of the world's leading providers of building energy efficiency products and services
PACE program – City of San Francisco's GreenFinanceSF commercial PACE program
The building – Pier 1, San Francisco, a landmark building that serves as the Prologis corporate headquarters
The project – Energy efficiency improvements in the form of building systems' retrocommissioning and LED lighting upgrades, plus a 200kW solar electric system
The financing: Clean Fund structured and financed a $1.4 million 20-year bond
Prologis Corporate Headquarters, Pier 1, San Francisco
This transaction makes two big points. First, the Clean Fund structure has compelling advantages even for firms - like Prologis – that enjoy a wide range of financing options. Second, an experienced energy solutions vendor like Johnson Controls can use the PACE structure to come up with financially compelling energy improvements to what was already an efficient, showcase building.
Beneath the surface this was an unusually complicated transaction that took a full Clean Fund team effort. Pier 1 is owned by the Port of San Francisco (a city entity) and Prologis owns a long term lease. On top of Clean Fund's previous firsts, this transaction underscores the company's leadership position in PACE finance. The Pier 1 financing was the first for the San Francisco GreenFinanceSF commercial PACE program and is the first PACE transaction to be secured by a leasehold interest.
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