National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Pace Funds Homewood Suites, Hilton Garden Inn Development in Ohio
Pace Equity funded the largest new Property Assessed Clean Energy (PACE) construction project in Ohio, a highly-sustainable new Homewood Suites and Hilton Garden Inn to be constructed in Easton. The 175,000-square-foot, 240-key hotel takes advantage of the latest innovations in sustainable design and building technology, making a significant difference in both its environmental impact and cost of operation.
The environmentally-responsible aim of the new build was a natural fit to utilize Pace Equity funding, which provides low-cost private capital to building projects including projects with sustainable energy goals.
Pace Equity funded 22% of the capital stack, roughly $10.4 million out of a $47.5 million dollar capitalization. The construction lender provided another $26.25 million, and developer Middletown Hotel Management Company, Inc. contributed the remainder. By using Pace Equity funding, the project’s investor return rate (IRR) improved by 35%, and the multiple of invested capital increased 47%.
For comments, questions or concerns, please contact Dennis Kaiser
