CounterpointeSRE announces the closing of $1.9 Million in commerical PACE Financing for hospitality development in Maryland
Development in Gambrills marks the first use of commercial PACE for New Construction in the Maryland Commercial PACE program
January 23, 2020
Counterpointe Sustainable Real Estate (CounterpointeSRE), through the Maryland Commercial PACE program (MD-PACE), has closed $1.9 million, 20-year, Commercial Property Assessed Clean Energy (C-PACE) financing for energy efficiency and water conservation measures at the Microtel By Wyndham hotel development project in Gambrills, Maryland, by The Reliable Companies, a regional developer of commercial real estate.
Located at 2525 Evergreen Road in Gambrills, Maryland, the “Microtel at Waugh Chapel Towne Center” will be a five-story, 79-room hotel. Construction is underway and the hotel is expected to open in July of 2020.
The $1.9 million in C-PACE funding is being used to directly support energy-efficient infrastructure investments throughout the building, including HVAC, window, lighting and building envelope (walls and roofing), as well as water-conserving low-flow fixtures. These measures are projected to save more than $1.6 million in energy and water costs over the 20-year finance period.
C-PACE financing is available in 18 counties across Maryland and has funded 29 energy retrofits to date, with the Microtel being the Maryland Clean Energy Center program’s first project for new construction.
“We are excited to see an owner tap the program as a resource for new construction,” stated Maryland Clean Energy Center Executive Director Katherine Magruder. “This project is a win because it will ultimately support jobs in the state for initial construction and create future jobs for operation of the new hotel, along with the associated tax revenue for Anne Arundel County.”
“The C-PACE funding from Counterpointe allows our team to develop a better asset for the community,” stated Shannon Smith, Vice President of The Reliable Companies, which has developed several properties in the Waugh Chapel Towne Center. “We’re able to make each room more energy efficient and the property more sustainable as a whole while keeping our overall cost of capital down,” he continued.
“We view the Microtel and its use of C-PACE for new construction as a sign of great potential for the MD-PACE market,” stated Eric Alini, Managing Partner of Counterpointe Sustainable Real Estate. “Across Maryland and neighboring D.C. and Virginia, there are many opportunities for our firm to provide long-term non-recourse financing to owners and developers who are making investments in energy-efficient and renewable infrastructure.”
“The Reliable Companies’ hotel development in Gambrills is a project that we are proud to finance,” stated Paul O’Connor, Senior Vice President, Commercial Real Estate Lending for Rockville, Maryland-based Revere Bank. “Their use of $1.9 million in PACE financing as a permanent source of capital alongside Revere’s $6.76 million commercial construction loan strengthens their capital position and allows the team to create an asset that will benefit the community for years. In fact, it is projected to create dozens of new jobs when operational,” he continued.
The MD-PACE program is designed to support clean energy and energy-efficiency investments in commercial properties. It is sponsored by the Maryland Clean Energy Center (MCEC), a corporate instrumentality of the state of Maryland which advances the adoption of clean energy and energy-efficiency products, services and technologies. MCEC leverages private capital to help homeowners, businesses, and government entities reduce energy costs. The MD-PACE program offers C-PACE financing to commercial property owners statewide.
Their use of $1.9 million in PACE financing as a permanent source of capital alongside Revere’s $6.76 million commercial construction loan strengthens their capital position and allows the team to create an asset that will benefit the community for years.
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, sustainability and renewable energy infrastructure deployed in new or existing buildings. The program, available in more than 20 states and several cities, is based on legislation that classifies energy efficient and/or renewable upgrades as well as above-code new installations as a public benefit. These “green” infrastructure elements and associated soft costs (permitting, structural support, etc.) can be financed with no money down and are repaid through the property tax bill over a term that matches the useful life of improvements (often as long as 20-25 years).
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