Downtown San Francisco Office Building
$1,400,000 Downtown San Francisco Office Building
CleanFund provided $1.4 million in PACE financing to upgrade Pier 1, a landmark 151,000 square foot office building that serves as Prologis' headquarters, and is owned by the Port of San Francisco. Pier 1 was the first financing for the San Francisco Green-Finance SF commercial PACE program and is the first PACE transaction to be secured by a leasehold interest.
Prologis needed a way to pay for a range of energy efficiency and renewable upgrades, that were to be utilized by multiple tenants, which created a split incentive, in addition to allowing PACE to be secured by a leasehold interest.
PACE offered the perfect solution for Prologis because it replaced higher cost equity, solved the split incentive and turned the property into a highly desirable space for tenants, while being secured by the leasehold interest.
The improvement project included 1,500 LED lighting fixtures, a 200 kW Rooftop solar system, HVAC overhaul, and building controls and result in 32% utility savings annually.
“At Prologis, our customers are asking for energy-saving improvements, and we have several corporate sustainability initiatives. The PACE structure is an attractive solution because it is long-term, 100% upfront financing for energy efficiency, renewable energy, and water conservation projects and pay it through our property taxes.”