Press Release
Home2Suites Utilizes C-PACE Financing for New Construction Project
Efficiency improvements will slash operating costs for years to come
Madison, WI (August 2, 2018) –The Home2Suites project, a new construction, four-story, 144-room hotel located on 2155 Rimrock Road in Madison, is the latest Wisconsin business to benefit from Commercial Property Assessed Clean Energy (C-PACE) financing. Available through the PACE Wisconsin Program—which is now active in 32 counties across state—C-PACE financing helps commercial property owners obtain low-cost, long-term financing for energy efficiency, renewable energy, and water conservation improvements.
Madison Rimrock Lodging Investors, incorporated $1.5 million of C-PACE financing into the overall project cost. The PACE financing will cover: energy efficient LED lighting, HVAC, Roof and Wall Insulation, Windows, Low-flow Fixtures, Packaged Air Terminal Air Conditioner, and Hot Water Systems. Over the life of these energy efficiency improvements, the building owner will capture an estimated $1,816,797 in energy savings on their utility bills. The North Central Group, the project developer, currently owns and operates more than 30 hotels under multiple franchise brands throughout the Midwest.
“This is our first experience with the PACE program and we think it is a natural fit for this project. It gives a property owner incentive to incorporate energy efficiencies into their project and realize a positive return on their investment. Additionally, having the ability to add a sliver of non-recourse debt to the capital stack is beneficial on multiple levels. The overall process was very smooth and was greatly aided by the willingness of our construction lender, Park Bank, to take the time to understand the program. Partnering with a local lender like McFarland State Bank for the PACE loan was another important key for us too,” explained Shawn Swenson, Director of Finance, North Central Group.
McFarland State Bank was the lender to provide the C-PACE financing component. Dan Carey, AVP Commercial Lending at McFarland State Bank noted, “After first being introduced to Dane County in 2017, commercial PACE financing seems to be gaining traction amongst local developers and property owners. It gives a property owner incentive to incorporate energy efficiencies into their project and realize a positive return on their investment. For new construction, developers are able to incorporate PACE into their capital stack and lower their cost of capital. We’re very pleased with the projects we’ve partnered on thus far.”
“PACE financing creates a business case that stimulates building owners’ investment in clean energy upgrades to their buildings and facilities,” said Jason Stringer, Program Administrator for PACE Wisconsin. “This project demonstrates the dual economic development and clean energy benefits that Wisconsin communities gain from offering the PACE Wisconsin program in their jurisdiction.”
Dane County adopted PACE Wisconsin early this year. A total of 32 counties currently participate in the program, and more continue to join as communities recognize the potential to stimulate economic development and reinvestment in local communities through clean energy improvements. PACE Wisconsin is administered by Energy Finance Solutions (EFS), the financial services division of Madison-based nonprofit, WECC.
About PACE Wisconsin
PACE (Property Assessed Clean Energy) drives economic development by authorizing municipalities and counties to work with private sector lenders to provide upfront financing—usually for 100 percent of the cost of energy-saving improvements—to property owners for qualified projects.
PACE Wisconsin offers an open-market solution for building owners in participating Wisconsin communities. To offer PACE Wisconsin, counties must pass a resolution authorizing execution of the Joint Exercise of Powers Agreement (JPA), and pass the Model PACE Ordinance through the county board of supervisors. Interested communities should contact the administrator at [email protected] or view more information at www.pacewi.org.
About Energy Finance Solutions (EFS)
EFS, the Financial Services Division of WECC, specializes in financing program consultation, design, and delivery services in support of energy efficiency and renewable energy improvements. Through partnerships with utilities, contractors, and other agencies, EFS offers customers simple, affordable ways to finance energy improvements.
Efficiency improvements will slash operating costs for years to come
Madison, WI (August 2, 2018) –The Home2Suites project, a new construction, four-story, 144-room hotel located on 2155 Rimrock Road in Madison, is the latest Wisconsin business to benefit from Commercial Property Assessed Clean Energy (C-PACE) financing. Available through the PACE Wisconsin Program—which is now active in 32 counties across state—C-PACE financing helps commercial property owners obtain low-cost, long-term financing for energy efficiency, renewable energy, and water conservation improvements.
Madison Rimrock Lodging Investors, incorporated $1.5 million of C-PACE financing into the overall project cost. The PACE financing will cover: energy efficient LED lighting, HVAC, Roof and Wall Insulation, Windows, Low-flow Fixtures, Packaged Air Terminal Air Conditioner, and Hot Water Systems. Over the life of these energy efficiency improvements, the building owner will capture an estimated $1,816,797 in energy savings on their utility bills. The North Central Group, the project developer, currently owns and operates more than 30 hotels under multiple franchise brands throughout the Midwest.
“This is our first experience with the PACE program and we think it is a natural fit for this project. It gives a property owner incentive to incorporate energy efficiencies into their project and realize a positive return on their investment. Additionally, having the ability to add a sliver of non-recourse debt to the capital stack is beneficial on multiple levels. The overall process was very smooth and was greatly aided by the willingness of our construction lender, Park Bank, to take the time to understand the program. Partnering with a local lender like McFarland State Bank for the PACE loan was another important key for us too,” explained Shawn Swenson, Director of Finance, North Central Group.
McFarland State Bank was the lender to provide the C-PACE financing component. Dan Carey, AVP Commercial Lending at McFarland State Bank noted, “After first being introduced to Dane County in 2017, commercial PACE financing seems to be gaining traction amongst local developers and property owners. It gives a property owner incentive to incorporate energy efficiencies into their project and realize a positive return on their investment. For new construction, developers are able to incorporate PACE into their capital stack and lower their cost of capital. We’re very pleased with the projects we’ve partnered on thus far.”
“PACE financing creates a business case that stimulates building owners’ investment in clean energy upgrades to their buildings and facilities,” said Jason Stringer, Program Administrator for PACE Wisconsin. “This project demonstrates the dual economic development and clean energy benefits that Wisconsin communities gain from offering the PACE Wisconsin program in their jurisdiction.”
Dane County adopted PACE Wisconsin early this year. A total of 32 counties currently participate in the program, and more continue to join as communities recognize the potential to stimulate economic development and reinvestment in local communities through clean energy improvements. PACE Wisconsin is administered by Energy Finance Solutions (EFS), the financial services division of Madison-based nonprofit, WECC.
About PACE Wisconsin
PACE (Property Assessed Clean Energy) drives economic development by authorizing municipalities and counties to work with private sector lenders to provide upfront financing—usually for 100 percent of the cost of energy-saving improvements—to property owners for qualified projects.
PACE Wisconsin offers an open-market solution for building owners in participating Wisconsin communities. To offer PACE Wisconsin, counties must pass a resolution authorizing execution of the Joint Exercise of Powers Agreement (JPA), and pass the Model PACE Ordinance through the county board of supervisors. Interested communities should contact the administrator at [email protected] or view more information at www.pacewi.org.
About Energy Finance Solutions (EFS)
EFS, the Financial Services Division of WECC, specializes in financing program consultation, design, and delivery services in support of energy efficiency and renewable energy improvements. Through partnerships with utilities, contractors, and other agencies, EFS offers customers simple, affordable ways to finance energy improvements.
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