PACE Loan Group provided $13 million in C-PACE financing for construction of a SpringHill Suites by Marriott Hotel in Lakewood, Wash., a Seattle suburb. In addition to the C-PACE funds, the project received $11.5 million from 1st Security Bank, with a total capital stack of $37.6 million.
The C-PACE proceeds cover energy conservation measures on the property, including ENERGY STAR windows, HVAC, domestic hot water heaters, lighting systems and controls and high-rise building mechanical systems, which are expected to generate $114,371 in annual operational savings.
“This project was a strong fit for C-PACE, offering an accretive source of financing to support the development of a hotel in a high-performing lodging market. The streamlined process enabled the loan to close in approximately two months, allowing the developer to move forward with construction, ” Parag Vipani, vice president – originations, PACE Loan Group, said in a statement.
Located off Pacific Highway adjacent to Joint Base Lewis-McChord—the U.S. Department of Defense’s military installation on the West Coast and the largest employer in Pierce County—the 128-key SpringHill Suites benefits from a strategic location near multiple demand drivers, including the Port of Tacoma, MultiCare Tacoma General Hospital, Madigan Army Medical Center and Pacific Lutheran University.