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www.HartfordBusiness.com • October 28, 2019 • Hartford Business Journal 9 Get started now at firstsuffieldbank.com You know what it takes to run a business. We'll help you save more time to do it. By simplifying your business banking, we can help you focus on the thing you do best – run your business. Business Mobile Deposit. Deposit checks right from your phone. Member FDIC | Member DIF firstsuffieldbank.com 877.888.1388 geography, Connecticut's C-PACE deal flow has long stood out. Since 2013, C-PACE and its private lending part- ners have helped finance $145 million worth of solar arrays, ef- ficient lighting, HVAC improve- ments and other energy-reduc- ing, money-sav- ing upgrades. However, across the country, the dollar value of commercial PACE deals has been growing at nearly 60 percent annu- ally on average since 2014, com- pared to 20 percent in Connecticut, according to an analysis of data from C-PACE and the national non- profit PACENation. Ohio's program recently leap- frogged Connecticut into second place in terms of cumulative deal value, and states like Colorado and Minnesota have seen triple-digit growth rates over the past year or so. Having a top-ranked PACE pro- gram brings bragging rights, but more importantly, it signifies that the state is doing its part to reduce energy consumption and pollution in the building sector, which pro- duces nearly one-third of Connecti- cut's greenhouse-gas emissions, according to state data. Growth strategy To grow what is already an im- pressive C-PACE portfolio, Green Bank's strategic plan includes en- ticing more third-party lenders to pursue the loans and financing new construction projects, as opposed to building retrofits, which is a growing trend across the country. But its main focus is tapping into new customer bases, Dykes said. While C-PACE has seen healthy volume from owner-occupied Class B and C buildings, non-owner-occupied facilities have been a tougher get. That's where Spinnaker comes in. One of the more active develop- ers in Connecticut, Spinnaker is a relatively new C-PACE customer that recently lent its voice to a Green Bank marketing video touting the program, with hopes that others will consider it. Spinnaker develops and owns mixed-use, commercial and apart- ment properties in Connecticut, Missouri and Oregon. It's tapped nearly $1.8 million in C-PACE financing for three of its Connecticut projects, adding rooftop solar arrays and other im- provements to save a projected $4 million over the next few decades. Of late, Spinnaker has made in- roads into Hartford, with two down- town deals pending, and it recently took over redevelopment of New Haven's former Coliseum site. Spinnaker CEO Clay Fowler said he'd been aware for years that PACE financing has been growing in popularity, but it took some con- vincing to give it a shot. The application process for its first C-PACE deal was paperwork intensive, but the next two went more smoothly, he recalled. "Once you do something diffi- cult once, it becomes a lot easier," Fowler said. Some of his industry peers, he said, lack familiarity with the program, but he's trying to raise awareness. He's also seen firsthand that some commercial real estate bankers aren't comfortable with C-PACE because it requires them to take a second lien position behind the C-PACE loan in the event of a borrower default. Dykes said banks that are OK with C-PACE realize it can improve a property's value and the borrow- er's cash flow. Defaults are also extremely rare, according to a study by the Law- rence Berkeley National Laboratory. All of Spinnaker's C-PACE deals thus far are in Fairfield County. Asked whether Spinnaker might tap C-PACE for its pending pur- chase of 55 Elm St. or a mixed-use development at the corner of Park and Main streets in Hartford, Fowler couldn't say for certain. He said that decision depends on the project's economics and factors like available roof space. "From a purely philosophical view of the world, I would do the right thing on every job, but there are financial imperatives," he said. Clay Fowler, CEO, Spinnaker Real Estate Partners