• Building Renovation
  • Commercial Real Estate
  • Philadelphia C-PACE

C-PACE Funds Industrial Fabrication Facility Expansion

Project Overview

Phase 1 Closing Date: August 2, 2021
Phase 2 Closing Date: October 4, 2024

Rhoads Industries received $47 million in Philadelphia C-PACE financing from CCG PACE Funding, covering nearly half the costs for the Philadelphia Navy Yard manufacturing facility expansion. Energy efficiency improvements qualified the state-of-the-art industrial fabrication facility to complete large-scale renovations and the purchase of heavy shipbuilding cranes.

$47 million
Project financing
$6 million
Lifetime energy savings
31,372 metric tons

Avoided carbon emissions

“C-PACE has allowed us to invest in upgrading our shipbuilding facility with the newest technology to support the US Navy. With the support of this business-friendly lending program, we were able to invest in energy-efficient infrastructure which would not be possible with traditional bank lending.”
- Mike Rhoads, Vice President, Rhoads Industries

The Challenges

Accessing capital can be challenging for large-scale manufacturing projects. Financing heavy manufacturing facility renovations is generally more costly than what traditional lenders can provide. Adding to the challenge, the cost to incorporate more energy-efficient building design features would further increase renovation costs.

    • Family-owned business founded 1896
    • Building 57: 300,000+ square-foot facility
    • Battleship component advanced manufacturing
    • Rooted in the Philadelphia Navy Yard
    • $100 million total development costs
    • Energy-intensive manufacturing operations

The Solution

Rhoads Industries turned to PEA’s Philadelphia C-PACE program to fund the full cost of high-efficiency building renovations. Energy efficiency measures included variable refrigerant flow (VRF) heating and cooling systems, LED lighting and controllers, and tighter insulation throughout the building envelope.

After completing an initial $15-million project, Rhoads Industries later decided to apply for an additional $32 million in C-PACE funding. Rhoads Industries again partnered with CCG PACE Funding LLC to finance nearly 100,000 square feet of new office space and remodeled a high bay workshop. This second infusion of C-PACE capital financed high-efficiency heating, ventilation, and air conditioning (HVAC) equipment, LED lighting, and a more energy-efficient building envelope.

Phase 1 (2021)

Substantial renovation of Bays A & B
Electric savings: 1,024 MWh/yr
Gas savings: 15,436 therms/yr

Phase 2 (2024)

Office addition and high bay workshop remodel
Electric savings: 586 MWh/yr
Gas savings: 102 therms/yr

“Funding through the C-PACE program has given us the opportunity to outfit our facility in anticipation of our customers’ needs. This construction provides the capacity of an additional 140,000 square feet of heavy manufacturing space, while at the same time mitigating the drain on the City’s and Navy Yard’s energy infrastructure.”

- Mike Rhoads, Vice President, Rhoads Industries
Phase 1 PDF
Phase 2 PDF
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