MD-PACE Announces the Closing of $1.9 Million in C-PACE Financing
Counterpointe Sustainable Real Estate (CounterpointeSRE), through the Maryland Commercial PACE program (MD-PACE), has closed $1.9 million, 20 year, Commercial Property Assessed Clean Energy (C-PACE) financing for energy efficiency and water conservation measures at the Microtel By Wyndham hotel development project in Gambrills, Maryland by The Reliable Companies, a regional developer of commercial real estate.
Located in Gambrills MD, the “Microtel at Waugh Chapel Towne Center” will be a five story, 79-room hotel. Construction is underway and the hotel is expected to open in July of 2020.
The $1.9 million in C-PACE funding is being used to directly support energy efficient infrastructure investments throughout the building, including HVAC, window, lighting and building envelope (walls and roofing), as well as water conserving low-flow fixtures. These measures are projected to save more than $1.6 million in energy and water costs over the 20-year finance period.
C-PACE financing is available in 18 counties across Maryland and has funded 29 energy retrofits to date, with the Microtel being the Maryland Clean Energy Center program’s first project for new construction.
“We are excited to see an owner tap the program as a resource for new construction,” stated Executive Director, Katherine Magruder. “This project is a win because it will ultimately support jobs in the state for initial construction, and create future jobs for operation of the new hotel along with the associated tax revenue for Anne Arundel County.”
“The C-PACE funding from Counterpointe allows our team to develop a better asset for the community,” stated Shannon Smith, Vice President of The Reliable Companies, which has developed several properties in the Waugh Chapel Towne Center. “We’re able to make each room more energy efficient and the property more sustainable as a whole, while keeping our overall cost of capital down,” he continued.
“We view the Microtel and its use of C-PACE for new construction as a sign of great potential for the MD-PACE market,” stated Eric Alini, Managing Partner of Counterpointe Sustainable Real Estate. “Across Maryland and neighboring DC and Virginia there are many opportunities for our firm to provide long-term non-recourse financing to owners and developers who are making investments in energy efficient and renewable infrastructure.”
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