C-PACE Financing helps The Prime Group, Inc. in the Redevelopment of the historic former Continental Bank building in The City Of Chicago
Greenwich, CT– CounterpointeSRE, announced today the closing of the Chicago PACE program financing, which provided $21.25 million in private capital to an affiliate of The Prime Group, Inc. toward redevelopment of five vacant floors of the historic 208 S. LaSalle Street building into a new, 233-room luxury boutique hotel. The hotel will be operated as The LaSalle Hotel and will be a member of Marriott’s Autograph Collection. The $21.25 million of PACE funding 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 the City for Counterpointe 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.”
C-PACE financing is available in more than 20 states and most major commercial real estate markets. The private capital provided by Counterpointe through these programs works in concert with commercial mortgages to complete or enhance a capital stack.
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 Reserve 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.
The Chicago PACE program, which was introduced to the City’s commercial real estate market in April 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.
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.
Counterpointe Sustainable Real Estate
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