A Rocky River developer is leaning on a rare slice of clean energy financing to help get a five-story, 71-unit apartment building off the ground on Hilliard Boulevard. Supporters say the capital stack now totals about $20 million and will cover rooftop solar along with a bundle of energy-efficiency upgrades aimed at trimming operating costs and, ultimately, residents' utility bills.
According to Crain's Cleveland Business, the deal uses what the outlet describes as a "rare" clean-energy bond, which it reports is the first of its kind in Northeast Ohio. A summary of Ohio Air Quality Development Authority materials from the Legislative Service Commission also notes that Rocky River Hilliard Apartments LLC secured about $20 million in bond financing.
Public records show Ryan Terrano of Terra Real Estate Capital walked Rocky River City Council through the plans, describing a 71-unit project backed by a mix of traditional construction debt and green financing. The council packet details how the development will use Property Assessed Clean Energy (PACE) financing, roughly $6.7 million from PACE lender Cuyahoga River Capital, alongside a construction loan from Erie Bank, according to the Rocky River City Council.
How the bond fits state programs
The financing appears to be structured in part through Ohio's Clean Air Improvement Program (CAIP) and other tools administered by the Ohio Air Quality Development Authority, which can label bonds as "green" and support PACE-backed projects that include eligible energy and air-quality improvements. Program materials and oversight details describing CAIP and the authority's bonding role are outlined in an audit from the Ohio Auditor of State.
Green upgrades the financing will cover
State and local summaries spell out where the clean-energy and PACE dollars are headed: LED lighting, high-efficiency HVAC and hot-water systems, upgraded insulation and a rooftop solar array, according to the Legislative Service Commission. Marketing materials for the project likewise play up an "energy-efficient design" and resident amenities on the Terra Hilliard Bluffs site.
Timeline and local impact
City documents put construction at roughly two years and say special-assessment payments tied to the PACE loan are slated to begin about 30 months after closing, when the added assessment starts appearing on county tax bills. The Rocky River packet estimated the special assessment at about $500,000 and underscored that PACE assessments carry the same priority as a real-estate tax, with no city general-fund money pledged for repayment.
Why developers are turning to PACE
Developers and municipal advisers say PACE and OAQDA-backed bond structures can deliver lower-cost, long-term capital at times when conventional construction lending is tight, making it easier to fold deeper efficiency measures into a project's budget. The Columbus Regional Energy Special Improvement District lists Cuyahoga River Capital among active PACE lenders and highlights typical benefits such as long amortization periods, lien priority and options to pass certain costs through to tenants.
Terra Real Estate Capital's Terra Hilliard Bluffs is poised to join a growing group of energy-focused multifamily projects in Ohio, and backers say the deal structure could serve as a local template for greener apartment construction. The property is already marketing units and calling out its energy-efficiency features as leasing gets underway.
