Greenworks Lending Closes Maryland’s Largest C-PACE Project
Nearly $9M in C-PACE Capital will be used for Prominent Baltimore City Multifamily Development Project
The MD-PACE program and Greenworks Lending, a leading C-PACE capital provider, today announced the recent closing of the largest ever C-PACE project in the state of Maryland. The project’s developers, Workshop Development and CLD Partners, will use nearly $9M of C-PACE financing to fund a variety of measures that will be integral to the operation of Bank Street Lofts, a 149-unit, mid-rise multifamily development located between Johns Hopkins Bayview Medical Center and Johns Hopkins main medical campus in Baltimore City, MD.
With the Bank Street Lofts project, Maryland surpasses $44M of C-PACE financing deployed across forty-seven properties. “We are proud to facilitate C-PACE financing for the Bank Street Lofts development in a year of unprecedented growth for the MD-PACE program. The hard work and diligence of the MD-PACE staff and Greenworks Lending, especially in the latter half of 2020, resulted in an incredibly productive time for C-PACE in Maryland. After such a successful start to the year, we eagerly anticipate the developments that 2021 has in store for the MD-PACE program,” said Kathy Magruder, Executive Director of the Maryland Clean Energy Center and sponsor of the MD-PACE program.
Bank Street Lofts is projected to deliver in the first half of 2022. CBRE’s Justin Glasgow, John Rehberger, and Mike Muldowney arranged the debt and equity for the $33M development project. Greenworks Lending’s Mid-Atlantic Director, Michael Billingsley, originated the C-PACE financing for the project. Sandy Spring Bank’s Senior Vice President, Paul O’Connor, originated the senior construction loan.
Bank Street Lofts will use C-PACE to finance energy efficiency-related measures in the building’s envelope, interior lighting, and HVAC systems, as well as water conservation measures related to plumbing. Once complete, the property’s energy and water efficiency will be a distinguishing feature, drawing tenants attracted to the lower utility costs and environmental friendliness of the lofts.
Bank Street Lofts is located at 3905 Bank Street in the quintessential Baltimore neighborhood of Highlandtown, characterized by rowhouses with magnificent white marble stone steps, a variety of eateries and bars, and a community of rich cultural diversity. The proposed development is comprised of a mix of studio, one-bedroom, two-bedroom, and co-living three-bedroom and four-bedroom units. The project boasts convenient access to many of Baltimore’s amenities and is within a half mile of the Johns Hopkins Bayview Medical Center, and just two miles from the main campus of Johns Hopkins Hospital. The developers expect that this central location will attract medical staff and students, as well as working professionals employed in downtown Baltimore. Bank Street Lofts will be a cornerstone of Baltimore’s Highlandtown neighborhood for years to come.
“Workshop Development & CLD Partners approached the construction of Bank Street Lofts with energy efficiency and water conservation in mind, and it was a true pleasure to finance this project. Greenworks’ mission is to provide financing to CRE developers that incorporate sustainable design elements into their projects resulting in positive environmental and financial performance of their building,” said Billingsley.
Doug Schmidt, Principal of Workshop Development, commended on the Greenworks Lending team stating, “Greenworks was an outstanding partner, understanding the goals of the project and our sensitivity to making Bank Street Lofts a standout in energy efficiency.” Chris Mfume, Managing Partner of CLD Partners, praised the Greenworks Lending deal execution stating, “it was a great experience working with Greenworks on the Bank Street project. Their product aligned perfectly with our project’s sustainability goals, and the team was efficient and diligent in getting us to a close.”
“The repeat partnership between Greenworks and Sandy Spring Bank in the Washington–Baltimore area enabled the seamless closing of the debt financing for Bank Street Lofts,” said Billingsley. “Sandy Spring is committed to supporting projects that enhance the communities we serve. We are thrilled to be part of this community project and investment in Baltimore,” said O’Connor.
To learn more about C-PACE or to discuss a potential project, contact [email protected].
About the MD-PACE Program
The MD-PACE program is sponsored by the Maryland Clean Energy Center (MCEC), a corporate instrumentality of the state of Maryland which advances the adoption of clean energy, energy efficiency products, services and technologies. MCEC leverages private capital to help homeowners, businesses, and government entities reduce energy costs. The MD-PACE program offers C-PACE financing to commercial property owners statewide.
About Greenworks Lending
Greenworks Lending is the largest provider of Commercial Property Assessed Clean Energy (C-PACE) financing in the country. Led by several of the industry’s founding policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial real estate through C-PACE. Greenworks has provided financing to hundreds of commercial properties and is active in 25 states. Greenworks Lending’s C-PACE financing makes clean energy a smart financial decision for commercial property owners. For more information, visit www.greenworkslending.com.
About Workshop Development
Workshop Development is a commercial real estate development firm based in Baltimore, MD and believes that hard work and collaboration are the keys to recognizing opportunities and making them a reality. Projects include multifamily, retail, industrial, and office developments. From award winning and transformative ground up-projects such as The Shops at Canton Crossing to the mixed-use Bagby Building, Workshop approaches each with the same objective: to create outstanding environments for people to live work and shop. The Partners have almost 100 years of combined commercial real estate experience in the Baltimore metro area. As entrepreneurial developers, they work in a range of transaction structures from fee ownership, joint ventures, co-development and other non-traditional structures.
About CLD Partners
CLD PARTNERS (CLD) is a real estate investment, development, and asset management firm with a focus on positively impacting the communities it serves. CLD provides sustainable, well-designed and thoughtfully programmed spaces across every level of housing from market rate, mixed-income, affordable, and workforce.
About CBRE’s Mid-Atlantic Debt & Structured Finance Group
CBRE’s Mid-Atlantic Debt & Structured Finance group is the largest single finance team in the Mid-Atlantic region and operates within CBRE’s premium national finance platform. The team executes a full range of debt and equity transactions for multi-housing, office, retail, industrial, data centers, cold storage, student housing, and hotel properties and projects. Over the past four years the team of 11 real estate professionals has closed over $10 billion in debt and equity transactions.
About Sandy Spring Bank
Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 60 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services.