LA Finance District Office Tower, 444 S. Flower St., receives $24 million retroactive C-PACE financing

Minneapolis, Minnesota (Jan. 13, 2025) – PACE Loan Group closed a $24 million C-PACE loan for 444 S. Flower St., Los Angeles, CA to finance improvements made to elevators, HVAC, plumbing, lighting, and exteriors.  Funds managed by Oaktree Capital Management, L.P. (“Oaktree”) plan to use the proceeds to reinvest in future tenant improvements and capital expenditures in the 48-story, 910, 672 sq. ft. office tower in the heart of Bunker Hill.

In California, C-PACE financing allows property owners to finance both recent and future improvements focused on energy efficiency, water conservation, and renewable energy projects.  By allowing upgrades completed within the last three years to qualify, C-PACE helps properties like 444 S. Flower capitalize on modernization efforts by providing low-cost, long-term financing.  These upgrades, which included enhancements to building systems and the common areas of the asset, not only improve the tenant experience, but deliver meaningful expense savings through lower utility bills and repair costs.

"In a marketplace where ESG continues to be a priority for tenants, it’s essential that we continue to lead by example," said Managing Director Bryan Sather. "By investing in sustainability, we not only enhance the tenant experience, but secure long-term value and differentiate 444 S. Flower from competitive office assets."

“Having an institutional owner find value in incorporating C-PACE as a creative financing tool shows broader overall acceptance of C-PACE and that’s a great thing,” said Rafi Golberstein, CEO and founder – PACE Loan Group. “No matter the market cycle, there is an application for C-PACE that can be accretive to almost any capital stack.”

The loan, arranged by Robbie Pinkas, senior vice president at PLG’s New York City office, will continue to support sustainable upgrades and leasing activity at 444 S. Flower.  “What’s interesting about CPACE is that sponsors don’t necessarily have to go above and beyond to qualify for financing.  Tenants benefit from the landlord investment in refreshed spaces and tangible reductions in utility costs, creating a win-win scenario for all stakeholders.”

Media Contact:

Martha Nevanen

Martha@paceloangroup.com

651-492-5861