Property Assessed Clean Energy (PACE) financing continues to be a low-cost method for including energy-efficiency components in projects throughout Central Ohio. Issued by Columbus-Franklin County Finance Authority, PACE financing was used most recently by the developers of The Fitzgerald, a new mixed-use project in Bexley.
“PACE financing is such a smart way to save money on an essential part of almost any project: adding energy efficiency to the building,” says Finance Authority President Patty Huddle. “Best of all, PACE can be used for both new builds and renovations.”
PACE allows building owners to invest in energy efficiency without significant upfront costs. “PACE is similar to other public finance mechanisms that use special charges to fund public improvements,” says Colin Kalvas, a leading local advocate for PACE and a partner with the Columbus office of law firm Bricker Graydon Wyatt, LLP. “The big innovation of PACE is that it’s used for privately owned improvements that serve the public purpose of improving energy efficiency or promoting clean-energy technologies.” Kalvas advises the Finance Authority on PACE programs. (For a deeper dive into PACE financing, see this interview with Kalvas. )
Unlike conventional loans, PACE assessments are voluntary property-specific charges that can extend up to 30 years, matching the useful life of improvements. With deals ranging from $200,000 to tens of millions, PACE offers commercial and non-profit property owners flexible, long-term financing for HVAC, solar, and other qualifying energy upgrades.
For The Fitzgerald project, PACE was used to finance:
- LED lighting
- High-efficiency heat pumps
- The building’s high-efficiency envelope
In addition to the PACE bonds, CFCFA issued TIF-backed bonds for The Fitzgerald’s garage and other public infrastructure components of the project.
A New Lower PACE Interest Rate
The Finance Authority now offers a new, low 5.5% fixed rate for PACE financing, for projects $2 million and under. “This below-market rate lowers project costs and encourages energy efficiency,” says Matt Lima, ESID Manager and Project Coordinator for the Finance Authority. Matt oversees PACE programs. “We’re proud to partner with Franklin County on the allocation of funds for this program. There’s never been a better time to explore it as an option.”
To start a conversation around PACE, contact Matt at [email protected].
Adding Housing – and More – on E. Main Street
The Fitzgerald occupies the site of the Trinity Lutheran Seminary Apartments, which was demolished for this project. Located at 2160-2184 E. Main Street, the project includes a mix of 226 apartments, 11,850 sf of Class A office space, nearly 11,000 sf of retail space, and a 269-space public parking garage.
Of the studio, one, two, and three-bedroom apartments, 76 are available at 80% of AMI. The building is in the heart of Bexley, offering easy access to downtown Columbus and is just steps from Capital University. It includes a fitness center, resident clubhouse, two outdoor courtyards, and a rooftop terrace. Earlier this year, Cameron Mitchell Restaurants announced it will open a 5,500 sf Hudson 29 restaurant as part of the project, further enhancing the development’s appeal.
The project was developed by Continental Development Ventures (CDV) and will be managed by Coastal Ridge Real Estate. “CDV is proud to partner with CFCFA on another central Ohio project,” says David Royer, Executive VP of Development of the firm. “CFCFA’s variety of capital sources allowed this project to happen.”
In 2024, Columbus Business First ranked The Fitzgerald as Central Ohio’s fifth-largest construction project.