By Hannah Madans
LA Business Journal | March 4, 2019
The Garland, a mixed-use downtown building home to the historic Globe Theatre, has received $7.8 million in financing for energy, water and infrastructure improvements. The money was provided by Sausalito-based CleanFund Commercial PACE Capital Inc.
C-PACE financing lets owners repay investments used on building upgrades and construction as a line item on property tax bills. The tax authority then forwards money to CleanFund and its agents.
The Garland, at 740 S. Broadway, is being redeveloped by San Francisco-based Presidio Bay Ventures and Brentwood-based 740 South Broadway Associates as a mixed-use project. Houman Sarshar, principal at 740 South Broadway Associates, said the property has been in his family since the 1980s. In 2017, he started a rehab project that will be completed in 2020.
“It’s been a full gut rehab,” he said. “We’ve gone down to the skin of the building and completely gutted the inside to just the floors and the structural features of the building. We will be rebuilding everything from the walls in.”
Once completed, the Garland will have 50,000 square feet of creative office space, a 28,000-square-foot entertainment venue and 3,200 square feet of retail.
Chris Robbins, managing director at CleanFund, said the financing helps property owners finance upgrades for more efficient buildings.
“One of the unique aspects of this capital is it can be used for projects that benefit the public good,” Robbins said of C-PACE financing. “The capital we are providing is designed to help commercial property owners finance those upgrades and improvements that create a more efficient building.”
Sarshar said C-PACE loans were beneficial from a development standpoint over more traditional types of loans.