Upgrading the 62-year-old commercial office building's central HVAC system
CLEANFUND NEWS | Sept, 12 2018
Denver, CO, — The owners of a 62-year-old commercial office property in downtown Denver are replacing the building’s central HVAC chiller system with help from the Colorado C-PACE program in partnership with private financier, CleanFund. The public-private-partnership will use private capital from CleanFund that is repaid over 20 years at a fixed-rate, is non-recourse and will cover 100 percent of the project’s cost.
Trane will install the improvement at the 14-story, 197,1761-square-foot building, located at 110 16th Street and known locally as the “Petroleum Building”. The project is projected to improve the building’s energy efficiency by 12 percent with an annual CO2 reduction of 1,384 tons, the equivalent to taking 296 gas-powered cars off the road for a year.
CleanFund, a provider of commercial PACE (C-PACE) financing nationwide, originated the project and funded the energy efficiency upgrades, which totaled $1.1 million.
“The Petroleum Building is a very well-managed building with forward-thinking owners who quickly understood that with C-PACE, they are able to access low-cost, long-term financing that replaces end of life capital expenditures in a manner that both creates positive cash flow and is accretive to the value of the asset.” said Joshua Kagan, Managing Director of CleanFund. “We have now funded several projects in Colorado and are grateful to our local partners like Trane and ownership groups that we are working with that have contributed to us having a pipeline of close to $100MM in and around Denver.”
“Our goal is to help our customers improve their building systems so that they run at maximum efficiency, eliminate surprises, and control operating costs,” said Doug White, a senior project developer at Trane. “C-PACE enables us to do more projects than we otherwise would be able to as it enables owners to think beyond simple payback period. CleanFund was a class act organization to work with and we are excited to finish our installation, which will lead to higher building performance and fewer service calls.”
“The Petroleum Building, which boasts a mid-century modern façade, light-filled interiors, and a prime downtown location, was a state of the art building when it was constructed in 1957,” said Tim Borst, the building’s co-owner. “Like any building of that vintage, it requires continued investment to keep it operating efficiently. C-PACE enabled us to fund our improvement project with long-term financing, which made it affordable. Even better, it covered 100 percent of the soft and hard costs, which kept our capital budget intact. It’s a great program and I’m glad we have it in Colorado.”
Story featured in The Denver Post article Program boosting commercial buildings’ energy efficiency making impact in Denver