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Minnesota Hotel Deal First to Use PACE Funding in O-Zone
PACE Equity recently completed funding $4.3 million for EKN Development Group’s construction of a new Hyatt House hotel in Rochester, MN. It’s reportedly the first Opportunity Zone fund project in the nation to include PACE funding.
EKN and its co-developer initially did their own energy study which qualified them for only $400,000—less than 10% of the amount for which they wanted to utilize PACE.
Turning to PACE Equity, they were able to land a commitment for the full $4.3 million. The remainder of the capital stack was provided by a construction loan of $29.7 million and $14.4 million equity.
The 175-key extended-stay hotel will be located at 315 First Ave., near Mayo Clinic’s downtown campus. The property was the site of the former American Legion Post 92, where Mayo Clinic founders William J. Mayo and Dr. Charles H. Mayo were members in the early 1900s.
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