DENVER — HJ Sims has arranged $3.8 million in Retroactive Property Assessed Clean Energy (PACE) financing for StoneCreek Real Estate Partners, a Dallas-based developer.
StoneCreek develops and owns seniors housing communities in Texas, Colorado and Arizona, with Civitas Senior Living as the operator.
The StoneCreek Littleton development is a 92-unit senior housing community with 70 assisted living units and 22 memory care units. The community opened in January of 2020 and provides local access to quality senior housing and care in the Littleton area of Denver. With occupancy and operational challenges related to the COVID-19 pandemic, StoneCreek was exploring alternative capital sources to provide additional operational leverage when Sims proposed exploring retroactive PACE financing.
PACE is a public/private partnership that allows property owners to finance projects through voluntary assessments placed on the property by a state economic development agency. The program finances 100 percent of the energy efficiency, renewable energy, water conservation, resilience improvements and the related costs for construction and renovations up to about 20 percent of the property’s appraised value.
The financing is collected with regular local real estate taxes and assessment payments are amortized at a fixed rate over the useful life of the project (15 to 25 years).
Sims coordinated with StoneCreek, Civitas, the PACE loan provider and the Colorado PACE Authority for approval for PACE financing from the senior construction lender.
StoneCreek, with the guidance of Sims, was able to borrow $3.8 million in PACE financing at 5.85 percent interest rate to finance necessary operating expenses related to an early 2020 opening and the ensuing impact of the pandemic.