Detroit non-profit Samaritan Center receives $3.3M C-PACE for renovation

Minneapolis, Minnesota (Oct. 16, 2024) – PACE Loan Group provided $3.27 million in C-PACE financing for Samaritan Center, a 444,475 sq. ft., three-building business complex in Detroit, Michigan. The loan covers 74% of the project’s $3.54 million renovation, which will update the main building, and reduce annual repair expenses and utility costs.

Redeveloped from a former hospital facility, Samaritan Center was founded to help spur redevelopment in Eastern Detroit and is owned by SER Metro-Detroit. At least 65% of the space is leased to non-profit organizations, which aim to promote education and physical and mental well-being in the community. Currently, the property is used for medical services, senior living housing, education, social services, and office space for various private businesses and non-profits, including SER Metro-Detroit.

The project work is being overseen by Henry Argasinski, and the Samaritan Center is managed by Detroit-based, women-owned property management firm, Beanstalk Real Estate Solutions. SER Metro-Detroit is hosting a ribbon-cutting and grand opening today.

“This loan was a godsend. The renovations almost make this a brand-new building and allow the Samaritan Center to begin operating as a ‘healthy village’ for the Eastern Detroit community,” said Argasinski, renovation project manager for SER Metro Detroit. “Without the C-PACE loan, we would not have been able to reimagine this aging property.”

The C-PACE proceeds will be used to finance qualifying energy-efficiency improvements in the main building, including LED lighting, HVAC, chillers and boilers, upgraded building control system, and new elevators. These energy-efficiency improvements are expected to save $328,370 annually in energy costs and reduce annual maintenance costs by $250,000. Samaritan Center also received a $2 million grant from the State of Michigan to update the building façade, replace large sections of the roof, and rebuild air handlers. The upgrades financed by C-PACE and the grant are projected to further reduce maintenance costs, retain tenants, and lease-up vacant space.

“Samaritan Center is a perfect example of how C-PACE can breathe life back into an older building in a cost-effective manner,” said Bali Kumar, COO, PACE Loan Group. “By covering upgrades that significantly reduce energy and maintenance costs, C-PACE helped put this non-profit center on the map without undergoing a costly, drawn-out gut rehabilitation.”