PACE Loan Group, a national leader in the Commercial Property Assessed Clean Energy (C-PACE) marketplace, closed a $20 million financing on the Four Seasons Hotel at RBC Gateway, a 37-story landmark developed by United Properties. This is the largest C-PACE Loan to date in Minnesota.
The development serves as the gateway into the heart of downtown Minneapolis. The retroactive loan finances sustainably-oriented improvements in the hotel portion of the development. Eric Skalland, EVP and CFO of United Properties stated, “RBC Gateway is an iconic building with a thoughtful design committed to sustainability and energy reduction, PLG helped us with this commitment.”
Lee Kruger, the President of the Saint Paul Port Authority, which serves as the MinnPACE program administrator remarked, “Minnesota has been on the leading edge of C-PACE from the beginning. This project demonstrates our ability to make a positive impact on the built environment while fulfilling our mission of advancing sustainable development statewide.”
PLG, the most active private lender in Minnesota, guides developers interested in adding C-PACE to their capital stacks. At RBC Gateway, PLG provided retroactive PACE financing for energy efficient existing building improvements. Rafi Golberstein, PLG CEO added, “This project shows the potential of C-PACE in large scale developments. We’re pleased to help local developers commit to their sustainability goals in such a big way.”
Commercial developers can utilize C-PACE to obtain low-cost, long-term financing for sustainable building improvements. C-PACE utilizes borrowed capital which is repaid over a twenty to thirty-year period via tax assessments. According to PACENation, upwards of 2,500 commercial projects have been funded by over $2 Billion of C-PACE loans.