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

Minneapolis, Minnesota (Oct. 28, 2024) – PACE Loan Group provided $3.27 million in C-PACE financing for Samaritan Center, a four-building business complex with more than 525,000 sq. ft. in Detroit, Michigan. The loan covers 60% of the energy efficiency project’s $5.54 million renovation, which will update the main building and is expected to reduce annual repair expenses and utility costs.

Redeveloped from a former hospital facility, Samaritan Center was founded to help spur redevelopment on the east side of 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. SER Metro-Detroit is hosting a “New Beginnings” Open House and ribbon-cutting ceremony today.

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.

SER Metro-Detroit also received a $2 million grant from the State of Michigan to update the Samaritan Center building façade, replace large sections of the roof, and rebuild air handlers. The upgrades financed by C-PACE and the State grant are projected to further reduce maintenance costs, retain tenants, and lease-up vacant space. “At SER Metro-Detroit, we are extremely proud to have completed the acquisition of the Samaritan Center. It was by no means an easy task, but we could not be more proud to continue to be a beacon of hope for the thousands of individuals who seek support from the Center,” said Eva Garza Dewaelsche, SER Metro-Detroit’s President and CEO.

The C-PACE project work is being managed by Henry Argasinski, project manager for SER Metro-Detroit.  The Samaritan Center’s property management company is Detroit-based, women-owned, Beanstalk Real Estate Solutions.

“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 east side Detroit community,” said Argasinski. “Without the C-PACE loan, we would not have been able to reimagine this aging property.”

“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.”