Hannon Armstrong Sustainable Real Estate closes alliance of $10.5 million
Hannon Armstrong Sustainable Real Estate (HASRE) – a previously announced strategic alliance of Hannon Armstrong Sustainable Infrastructure Capital, Inc. and Counter pointe Sustainable Real Estate, LLC (CSRE) – announced 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. The Hyatt Centric Hotel, which will be constructed at 1128 7th Street – the site of the landmark Hotel Clayton (built in 1911) – will be a 172 room, 11 story, 'upscale' property, adjacent to the Golden 1 Center, the home of the NBA's Sacramento Kings. The new construction will preserve and integrate the original façade of the 1911 building. "We are very excited to play a role in financing this highly resilient and sustainable Hyatt-brand hotel," said Eric Alini, managing partner at HASRE. "As more travelers expect environmentally responsible lodging, hotel properties are an ideal use of PACE financing. Property owners can use PACE to increase guest comfort and satisfaction and preserve capital and equity at the same time," Alini continued. 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. CBRE Senior Vice President Marc Sallette, added, "PACE filled a very important gap in the capital stack to complete this loan and get construction of the Hyatt Centric underway. We have found it to be a great tool for hotels to take advantage of. When property owners can invest in energy efficient buildings and upgrades, it's a win-win for everybody."
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