Nuveen Green Capital provided $6.4M in C-PACE capital and NY Green Bank provided $12MM in senior debt financing to fund the construction of the hotel, including its energy efficiency measures, e.g., lighting, insulation, plumbing, windows, roofing, and associated soft costs. This transaction demonstrates that fully electrified, energy-efficient, carbon neutral design hotels are attractive investment opportunities. The project further highlights that traditional senior debt financing can be structured alongside C-PACE capital, thereby providing commercial property owners and developers access to low-cost, long-term, fixed-rate financing for energy efficiency, water conservation, renewable energy, and resiliency commercial real estate projects.
Located at 82 Montgomery Street in Albany, NY, The Albany Hyatt Hotel, “Hyatt Place,” is a new, ground up construction project in downtown Albany. Due to the COVID-19 Pandemic, construction was paused on the project, but with the help of C-PACE financing from Nuveen Green Capital, the project will be able to continue unimpeded.
Upon completion, Hyatt Place will be a fully electrified, seven-story, 73,971 square foot, energy efficient, upscale, select service hotel, with 110 guest rooms and a public meeting space. Located in downtown Albany on the west bank of the Hudson River, the hotel will serve the immediate needs of the New York state capital and surrounding areas, as well as the demand driven by its midway location between the Hudson Valley to the south, the Adirondack Mountains to the north, Buffalo to the west, and Boston to the east. The project is expected to create 120 full time construction jobs, as well as an estimated 20 full time employee jobs upon completion.
Nuveen Green Capital’s C-PACE program knowledge was invaluable in navigating the process with other capital providers, engineers, attorneys, and professionals. Closing of the financing was very efficient in large part due to their established internal framework and systems. This is our second transaction with Nuveen Green Capital, and consider them a valuable partner.
When I introduced PACE legislation in Albany County this is exactly the outcome I was hoping to see. PACE financing is a program that helps our economy grow while respecting the environment and the climate challenges we face. Congratulations to Pioneer Companies and Nuveen Green Capital for working together to bring this exciting project across the finish line.