Holiday Inn & Suites Express
HOTEL CAPEX RECAPITALIZATION
Retroactive Financing for a Recently Completed Construction Project
2074 E 20th Street in Chico, CA, – a 93 room Holiday Inn Express &
Suites serving visitors to Chico and the surrounding area – recently
underwent a large-scale capital expenditure construction project.
The hotel was able to recapitalize recently completed energy and water
related capital expenditure projects through C-PACE financing. The
retroactively financed measures included site concrete, building
envelope, elevators, plumbing, HVAC, and electrical for a total of
$3,560,764 in C-PACE eligible financing which allowed the hotel to
free up liquidity and replenish operating reserves.
About Commercial PACE
Commercial Property Assessed Clean Energy (C-PACE) makes it possible for commercial property owners to obtain low-cost, long-term
financing for energy efficiency, water conservation and renewable energy projects. The program starts with a state-level government policy
that classifies clean energy upgrades as a public benefit – like a new sewer, water line or road. These upgrades can be financed with
no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements
and/or new construction infrastructure (typically ~20-30 years). The assessment transfers on the sale of the property and can be passed
through to tenants where appropriate. While facilitating sustainability efforts, the program reduces property owners’ annual costs and
provides dramatically better-than-market financing for green new construction.
“Greenworks Lending did a great job in securing our existing hotel with a C-PACE
loan! The process was thorough and efficient with weekly calls to discuss any
questions and progression on the loan. We started and closed within 6 weeks
and are extremely pleased with the team at Greenworks. We will consider using
them in the future for new construction and existing hotels that are newly built.”
– Prakash Patel, President — Lotus Management Inc.