CounterpointeSRE provices C-PACE financing for hotel construction and the adaptive reuse of historic office to hotel in the City Of Chicago
Greenwich, CT– The Prime Group has landed $21.25 million in private capital from C-PACE hospitality leader CounterpointeSRE for the redevelopment of five vacant floors of the historic LaSalle Hotel into a new, 233-room luxury Marriott’s Autograph Collection. The transaction illustrate the continued use of C-PACE by the hospitality industry for construction financing and will support energy-efficient infrastructure investments at the new hotel including HVAC, windows, lighting, and elevator elements as well as water-conserving low-flow fixtures.
“Being able to support The Prime Group’s development of the hotel is an important first step in Chicago and other major markets as we make our first investment in the sustainable infrastructure of Chicago’s diverse built environment,” stated Eric J. Alini, managing partner of Counterpointe Sustainable Real Estate. “We look at this transaction as a sign of things to come for the nation’s larger cities, including Philadelphia and New York where programs are emerging.”
The Chicago PACE program, which was introduced to the City’s commercial real estate market in April 2019 is administered by CounterpointeSRE’s sister company Counterpointe Energy Solutions, which operates as the program administrator with Loop Capital through the entity Loop-Counterpointe PACE LLC.
Ullico (Union Labor Life Insurance Company) is the senior lender on the Reserve project, providing the first mortgage and construction loan.
“Ullico is proud to support this ambitious project in Chicago, a city that supports the pursuit of fair wages, safe working conditions, pensions to retire on after a lifetime of hard work, and respect in the workplace,” said Edward M. Smith, president and CEO of Ullico Inc. “This project will spur economic development and create union jobs, many of which will come through minority and women-owned businesses per Chicago PACE program guidelines.”
Energy-efficient infrastructure improvements to The LaSalle Hotel will net an estimated $3 million in total energy savings over a 25-year expected useful life. Additionally, water savings from low-flow fixtures will net an approximate savings of 2.27 million gallons per year.
Michael W. Reschke, Chairman and CEO of The Prime Group, Inc. stated: “The Chicago PACE program provided funding that we will direct towards making the best possible energy efficiency and reliability decisions for our property while helping us keep our capital costs down.”
What is PACE financing:
PACE financing makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing for energy efficiency and renewable energy infrastructure deployed in new or existing buildings. These green infrastructure elements and associated soft costs can be financed with no out of pocket costs and are repaid through the property tax bill over a term that matches the useful life of improvements.
About Counterpointe Sustainable Real Estate:
Counterpointe Sustainable Real Estate (CounterpointeSRE) is a leading commercial real estate finance provider specializing in sustainable infrastructure improvements through PACE financing.
Media Contact:
Counterpointe Sustainable Real Estate
855 431 4400