The Registry | March 4, 2019
Sausalito, CA (March 4, 2018) — CleanFund, the leading nationwide provider of Commercial Property Assessed Clean Energy (C-PACE) financing, today announced providing $7.8 million for the energy, water and related infrastructure improvements supporting the adaptive re-use of The Garland, an 11-story, 82,000 square-foot downtown Los Angeles mixed-use property in the burgeoning Broadway Theater District that is also home to the Globe Theatre.
San Francisco-based Presidio Bay and Los Angeles-based 740 South Broadway Associates are repositioning The Garland, located at 740 S. Broadway just blocks from Grand Ave. skyscrapers and condominium developments, to provide 50,000 square-feet of creative office space, a 28,000 square-foot theater/entertainment venue, and 3,200 square-feet of retail.
“There’s no space quite like The Garland in downtown L.A. with its history and character that will be completely modernized and amenitized,” said Houman Sarshar, Principal at 740 South Broadway Associates. “The CleanFund C-PACE financing is a superb complement to our capital stack, taking care of key energy, water and infrastructure components.” Active throughout the Western U.S., Presidio Bay specializes in new construction and major renovation of complex, mid-to large-scale office, mixed-use and urban multifamily communities. Construction began in late 2018 with anticipated completion by December 2019. The Garland is actively leasing commercial space but the Globe Theatre is fully leased and will be operational during renovation, he added.
“CleanFund’s C-PACE financing provides low cost capital for improvements to The Garland including HVAC systems, electrical, elevators, interior daylighting, weather sealing, water system improvements and a seismic retrofit,” said Chris Robbins, Managing Director at CleanFund. “CleanFund provides accretive financing solutions for new construction, value-add projects and repositionings, enabling project sponsors to implement cost-saving and energy efficient improvements that maximize sustainability,” he said.
C-PACE financing was introduced in California in 2008 as a form of voluntary parcel tax assessment financing to fund qualifying improvements that reduce energy and water usage, and that provide seismic and other resiliency benefits to the built environment. C-PACE financing for commercial real estate, which has been adopted in 35 states and the District of Columbia, allows property owners to repay qualified investments for building upgrades and new construction as a line item on the property’s ordinary property tax bills.