February 1, 2019
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