D.A. Davidson Special District Group Achieves Historic C-PACE Financing

$153M transaction completes capital stack for Black Desert Resort, world-class hospitality offering planned in Utah

D.A. Davidson & Co.’s Special District Group, a nationally recognized team of capital market professionals, has achieved the single largest C-PACE financing ever closed in the United States. The financing marks the completion of the capital stack necessary for the continued development of Black Desert Resort, the iconic, amenity-rich, 580-acre world-class commercial and residential resort community in southern Utah.

“This C-PACE financing is a direct representation of the merits behind the Public Infrastructure District we established last year designed to help fund the public infrastructure needs for this project, and we're grateful for our continued long-term partnership with Black Desert,” said Brennen Brown, managing director at D.A. Davidson, Special District Group. “This remarkable project features some of the most innovative financing tools available in the market today and we’re proud to be a leader in providing these financial solutions for our clients.”

Commercial Property Assessed Clean Energy (C-PACE) is a financing tool that funds energy efficiency, renewable energy and water conservation improvements on commercial, industrial and certain specified residential properties.

Black Desert Resort is an environmentally friendly commercial and residential resort designed as a destination for guests and visitors, as well as a home for full-time and part-time residents.

In 2021, D.A. Davidson & Co.’s Special District Group successfully priced and closed $106 million of limited tax general obligation bonds for Black Desert Public Infrastructure District (PID). The Black Desert PID is approximately one mile south of the Snow Canyon State Park entrance, 7.5 miles northeast of the city of St. George in the Greater Zion area of southern Utah.

“Black Desert Resort is a unique, world-class project that requires equally unique, sustainable and leading-edge financial tools to fulfill our vision for this new community. D.A. Davidson has been our financial partner since day one, and a continued partnership with their team on this C-PACE financing was an obvious choice,” said Patrick Manning, managing partner at Black Desert Resort. “D.A. Davidson is not only a leader in this market, but their spirit of collaboration and deep understanding of how different project phase requires different financing tools throughout the development journey has made each milestone a seamless process.”

The creation of the PID was instrumental in effectuating the C-PACE transaction, for which the proceeds from C-PACE will be used to pay for the proportion of the vertical construction of the buildings that qualify as clean energy improvements.

Specifically, the proceeds of the C-PACE will be dedicated to numerous eligible energy-efficient and resiliency solutions, including exterior and interior measures such as LED lighting, HVAC, and thorough seismic strengthening throughout Black Desert Resort. The funds will also be used to deploy the largest ever use of cost-effective, low-voltage wiring throughout the development.

Between the $106M PID financing last fall and this $153M financing, D.A. Davidson has raised nearly $260M of capital for the continued development of Black Desert Resort. The funding is the largest single transaction in C-PACE history and approximately 50% larger than the previous record deal size.

“Our role was to bring the capital to the table, and we’ve accomplished exactly that. This is a major milestone for both our Special District Group and our partners at Black Desert Resort as it will help usher their vision forward,” stated Brown.

D.A. Davidson & Co.'s Special District Group focuses on raising capital for its land development clients by offering access to both the public capital markets as well as private institutional investors. The group excels at financing public infrastructure for land development through the issuance of municipal bonds. The team partners with special districts and developers to structure turnkey and tailored transactions to optimize the best economic outcome for clients, driving groundbreaking financial solutions with hands-on partnerships from project inception to completion. For more information on D.A. Davidson & Co.'s Special District Group, visit: https://dadavidson.com/specialdistrictgroup.

About D.A. Davidson Companies

D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Los Angeles, New York, Omaha and Seattle, the company has approximately 1,475 employees and offices in 28 states.

Subsidiaries include: D.A. Davidson & Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services. For more information, visit dadavidson.com.

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