PACE Houston has facilitated the closing of Texas' first office building renovation using PACE financing. The 200,000 SF, 11 story multi-tenant office building is located on I-610 at 1225 North Loop West. A $1.3 million, fixed rate, 20-year PACE loan funded 100% of the cost of two new chillers, HVAC Controls and LED lights. The lifetime energy efficiency and operating cost savings are expected to exceed the cost of financing, making the loan self-liquidating, while increasing tenant comfort and the property’s market position.
PACE Houston was engaged to guide the project through the PACE process from start to finish by Stellar International Commercial Real Estate, LLC the building manager who also served as the Project Manager. Seth Eslami, Manager with Stellar said, "PACE Houston has been the key partner to this project from the beginning. They know everything there is to know about PACE. Also, they have probably done more educating Houstonians on PACE than any other organization."
Tim Crockett, a 30+ year veteran in Houston Commercial Real Estate and co-founder of PACE Houston said, "PACE is the single biggest improvement in our industry I’ve seen in my 30-year real estate career. Stellar’s Seth Eslami immediately grasped the financial aspects and benefits of PACE and worked tirelessly to ensure that ownership was getting the best deal possible. I know many properties will benefit from Stellar’s holistic building management approach.”
While several excellent firms were approached to compete for various roles in the project, Stellar ultimately chose Petros Finance as the lender, Hunton Trane/Convergentz as the mechanical/controls contractor, and XtraLight as the lighting provider. Keith Reihl, PE was chosen as the Independent Third Party Engineer. Keith has held leadership positions in the USGBC, ASHRAE, AEE & currently Chairs of the City of Houston's Energy Efficiency Committee.
The City of Houston and the Texas PACE Authority exercised leadership in implementing this important energy efficiency financing program. Mayor Turner first worked to pass PACE while working in the State Legislature and again when he launched the program last year as Mayor.
PACE legislation has now been adopted by 34 states and Washington DC. Houston’s PACE program went live last year with Simon Properties adding Houston to the $500 million of PACE improvement projects they are doing around the nation.
More information on PACE financing can be found at www.pacehouston.com
Tim Crockett, President, PACE Houston at firstname.lastname@example.org 713-530-7922