Dealmaker: PACE Loan Group Originates $13M in C-PACE Financing

(Illustration courtesy of PACE Loan Group)

PACE Loan Group, Minneapolis, provided $13 million in C-PACE (Commercial Property Assessed Clean Energy) financing for construction of a SpringHill Suites by Marriott Hotel in Seattle suburb Lakewood, Wash.

In addition to the C-PACE funds, the project received $11.5 million from 1st Security Bank of Washington, Mountlake Terrace, Wash., with a total capital stack of $37.6 million.

The C-PACE proceeds cover energy conservation measures on the property, including Energy Star windows, HVAC, domestic hot water heaters, lighting systems and controls and high-rise building mechanical systems, which are expected to generate $114,371 in annual operational savings.

“This project was a strong fit for C-PACE, offering an accretive source of financing to support the development of a hotel in a high-performing lodging market,” said Parag Vipani, vice president of originations with PACE Loan Group. “The streamlined process enabled the loan to close in approximately two months, allowing the developer to move forward with construction.”

Located off Pacific Highway adjacent to Joint Base Lewis-McChord–the largest employer in Pierce County–the 128-key SpringHill Suites benefits from its location near multiple demand drivers including the Port of Tacoma, MultiCare Tacoma General Hospital and Madigan Army Medical Center.