HASRE Closes $10.5 million PACE for a Historic Landmark Property in Sacramento
Hannon Armstrong Sustainable Real Estate (HASRE) announces that it has closed a $10.5 million, 25 year, Commercial Property Assessed Clean Energy (C-PACE) financing for energy efficiency measures and seismic strengthening of a new Hyatt Centric Hotel in downtown Sacramento, California.
Counterpointe Energy Solutions LLC acted as PACE Program Administrator for Hannon Armstrong Sustainable Real Estate's $10.5 million Commercial Property Assessed Clean Energy (C-PACE) financing for energy efficiency measures and seismic strengthening of a new Hyatt Centric Hotel in downtown Sacramento, California.
The Hyatt Centric Hotel, which will be constructed at the site of the 1911 landmark Hotel Clayton (subsequently renamed the Marshall Hotel), will be a 172 room,11 story, upscale property, adjacent to the Golden 1 Center, the home of the NBA’s Sacramento Kings. The original façade of the 1911 building will be preserved and integrated. The construction of this boutique hotel is expected to be a further catalyst for the redevelopment and transformation of the city’s center.
Through Counterpointe Energy Solutions’ C-PACE Program, the property owner was able to secure $10.5 million at a fixed rate for 25 years, removing interest rate and term risk. The PACE financing for seismic strengthening will prevent the likelihood of significant property damage in the event of an earthquake. The PACE financing for energy projects will save over $1 million in energy costs over the life of the project. By utilizing PACE instead of a larger first mortgage, Hyatt Centric was also able to save an additional $1.5 million in interest payments over three years.
“We are pleased to offer PACE financing to Sacramento property owners in order to enhance their commercial buildings,” says Eric J. Alini, CEO of Counterpointe Energy Solutions. “Allowing property owners to voluntarily repay energy and seismic improvements through their property taxes accelerates infrastructure improvements and helps governments meet their climate, resiliency and sustainability goals,” he added.
Counterpointe Energy Solutions has unique and extensive experience financing seismic strengthening improvements – which, in 2015, led to Counterpointe’s selection by the city of San Francisco Earthquake Safety Improvement Program (ESIP) to provide PACE financing for its mandatory seismic strengthening of soft-story structures.
Commercial Property Assessed Clean Energy (C-PACE) is provided through a public-private partnership that helps local governments and the private sector finance eligible sustainable and resiliency improvements in commercial properties. Sacramento is one of many cities across the nation that have selected Counterpointe Energy Solutions’ PACE programs to assist its property owners.
About Counterpointe Energy Solutions
Counterpointe Energy Solutions LLC provides Property Assessed Clean Energy (PACE) Program administration with a management team that has over 100 years of combined real estate and financial experience focused on making the economics of sustainable real estate work. Counterpointe Energy Solutions is a nationwide leader in PACE program administration helping to provide private capital to improve America’s infrastructure. Counterpointe Energy Solutions currently administers programs in California and Florida and is developing programs in New Jersey and Chicago.