The Menkiti Group, a local, minority-owned real estate developer, needed to upgrade facilities for their tenant, Annie's ACE Hardware, a fixture of the Brookland neighborhood in Washington DC.
DC PACE worked Menkiti Group to finance capital improvements to their building including interior and exterior LED lighting, envelope enhancements, HVAC upgrades, and installation of low-flow water fixtures.
“PACE financing solved a serious capital improvement need for our tenant, Annie’s ACE Hardware,” said Bo Menkiti, CEO of Menkiti Group, the firm that developed and owns the property. “PACE enabled us to invest in high-efficiency equipment that will pay for itself out of future energy savings.” Financed by PACE-secured capital from United Bank, these upgrades will save money immediately, providing utility, avoided O&M and avoided capital cost savings of approximately $585,000 over 20 years.
The property was originally financed through a U.S. Small Business Administration (SBA) Section 504 loan. This was the first time PACE financing was approved through the SBA’s Little Rock, Arkansas Commercial Loan Servicing Center. “PACE financing is an important economic development tool for business owners,” said Sally Robertson, President and CEO of the Business Finance Group, the Certified Development Company that provided the SBA loan.
Annual savings are estimated at 81,000 kWh of electricity, 5,600 of natural gas, and 32,000 gallons of water. Energy savings translates to an annual reduction in CO2 emissions of 85.7 metric tons, the equivalent of taking 17 cars off the road.