Hotel Capex recapitalization
Retroactive financing for a recently completed construction project
2074 E 20th Street in Chico, CA, – a 93 room Holiday Inn Express & Suites serving visitors to Chico and the surrounding area – recently underwent a large-scale capital expenditure construction project.
The hotel was able to recapitalize recently completed energy and water related capital expenditure projects through C-PACE financing. The retroactively financed measures included site concrete, building envelope, elevators, plumbing, HVAC, and electrical for a total of $3,560,764 in C-PACE eligible financing which allowed the hotel to free up liquidity and replenish operating reserves.
About Commercial PACE
Commercial Property Assessed Clean Energy (C-PACE) makes it possible for commercial property owners to obtain low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects. The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit – like a new sewer, water line or road. These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically ~20-30 years). The assessment transfers on the sale of the property and can be passed through to tenants where appropriate. While facilitating sustainability efforts, the program reduces property owners’ annual costs and provides dramatically better-than-market financing for green new construction.
Nuveen Green Capital did a great job in securing our existing hotel with a C-PACE loan! The process was thorough and efficient with weekly calls to discuss any questions and progression on the loan. We started and closed within 6 weeks and are extremely pleased with the team at Nuveen Green Capital. We will consider using them in the future for new construction and existing hotels that are newly built.