Lone Star PACE, a leading administrator of Texas’ Commercial Property Assessed Clean Energy (C-PACE) Program, has announced the successful arrangement of $3.5 million in C-PACE financing for the sustainable renovation of Meadow Park Tower in Dallas County. This 263,000-square-foot, 15-story office building, located at 10440 N. Central Expressway in Dallas, is undergoing a significant transformation to enhance its sustainability and appeal to tenants.
The project, which began in 2022, involves the installation of a range of energy-efficient components, including high-performance windows and walls, LED lighting, upgraded HVAC systems, and low-flow plumbing. This commitment to sustainability is expected to yield substantial reductions in energy, water, and natural gas consumption. The building, originally constructed in 1986 and renovated in 2016, is now poised to become a model of modern, environmentally conscious office space.
Lee McCormick, president of Lone Star PACE, highlighted the significance of C-PACE financing in this project, stating, “It was an honor to partner with Bradford MPT Partners and Bayview PACE on this project, which breathes new life into a landmark office tower at the heart of North Dallas. C-PACE financing is a great tool to incentivize the modernization of aging building stock, which is especially valuable in today’s evolving office market.”
C-PACE financing provides property owners with access to long-term, low-cost financing specifically designed for energy and water conservation systems in commercial buildings. This flexible funding mechanism can be utilized for new construction, retrofits, or recapitalizations, offering a valuable tool for property owners seeking to improve sustainability and increase property value.
Bayview PACE, the capital provider for the Meadow Park Tower project, is a division of Silver Hill Funding, LLC. Jason Clouet, vice president at Bayview PACE, emphasized the benefits of C-PACE financing: “We are excited to help finance the Meadow Park Tower improvements with our flexible, non-recourse, fixed-rate C-PACE. As broader adoption of commercial PACE financing continues, owners and developers are benefiting from its wide applicability at any time during the property life cycle, from new construction to retroactive financing.”
In addition to the sustainable upgrades, Bradford MPT Partners has invested in enhancing the building’s interior and adding a variety of amenities, including a new outdoor patio, tenant lounge, conference center, fitness center, and putting green. These investments have resulted in a stabilized occupancy of 90%. Kevin Santaularia, president and CEO of Bradford Cos., underscored the importance of sustainability in their vision for Meadow Park Tower: “Sustainability was at the heart of our plan to enhance Meadow Park Tower when we acquired the property in 2021. C-PACE financing enhanced our capital stack while also allowing us to realize our vision of ensuring this building serves the community for years to come.”
This project showcases the growing trend of incorporating sustainable practices in commercial real estate, driven by both environmental concerns and the desire to attract tenants who prioritize eco-friendly spaces. The success of Meadow Park Tower’s renovation serves as a testament to the potential of C-PACE financing in driving sustainable development within the commercial real estate sector.
