4550 Kingston Street
During a rainy spring, few things are more disruptive to business than a leaky roof. Unfortunately, this was the situation for B&R Plastics, a precision plastic design manufacturer located a few miles northeast of downtown Denver.
B&R Plastics runs its operation from their 168,000 square foot warehouse, which was constructed in 1977. Over the past few decades, Denver’s relentless weather — blistering heat, pounding hail, and driving snowstorms — had taken its toll on the roof. Despite the $1.4 million price tag, putting off a full replacement of the roof was no longer tenable.
We were hired by B&R to help the company explore C-PACE financing for the roof replacement project. Like many commercial property owners, B&R had been looking at a number of options to pay for the new roof, including paying cash and financing the project on a short-term bank note. Both of these options would have resulted in a significant and negative impact to the company’s cash flow position. C-PACE financing was the only option that extended the loan term to match the effective useful life of the new roof. And because the C-PACE loan is structured as a property tax assessment, it’s low-risk, offers highly competitive rates, and can be transferred upon sale of the building.
“At the end of the day, the 20-year, fixed-rate term available through C-PACE provided maximum flexibility for our business moving forward,” said Darrell Kulzer, Vice President of B&R Plastics.
B&R Plastics understandably wanted to move quickly to secure C-PACE financing given the urgency of the project. We expertly navigated the program’s administrative requirements for our client, secured highly favorable C-PACE financing terms, and successfully closed the financing in near record time.
Citywide Banks, a Denver-based community bank that has funded several C-PACE projects in Colorado, provided the 100%, 20-year financing to B&R Plastics. Terry NeSmith of Citywide Banks, said “the owner truly leveraged all that C-PACE offers. We are thrilled to once again offer C-PACE financing to a local business in need of a new roof, and to do so in a timely manner and with competitive terms.”