CounterpointeSRE Announces the Closing of $1.9 Million in C-PACE Financing for New Microtel in Gambrills, Maryland, Through Maryland Commercial PACE Program
Development of the 2525 Evergreen Road property in Gambrills marks the first use of the Maryland Commercial PACE program for new construction
GREENWICH, Conn., January 23, 2020 (Newswire.com) - 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 at 2525 Evergreen Road in Gambrills, Maryland, 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 Maryland Clean Energy Center 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 D.C. 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.”
“The Reliable Companies’ hotel development in Gambrills is a project that we are proud to finance,” stated Paul O’Connor, Senior Vice President, Commercial Real Estate Lending for Rockville, Maryland-based Revere Bank. “Their use of $1.9 million in PACE financing as a permanent source of capital alongside Revere’s $6.76 million commercial construction loan strengthens their capital position and allows the team to create an asset that will benefit the community for years. In fact, it is projected to create dozens of new jobs when operational,” he continued.
The MD-PACE program is designed to support clean energy and energy-efficiency investments in commercial properties. It is sponsored by the Maryland Clean Energy Center (MCEC), a corporate instrumentality of the state of Maryland which advances the adoption of clean energy and energy-efficiency products, services and technologies. MCEC leverages private capital to help homeowners, businesses, and government entities reduce energy costs. The MD-PACE program offers C-PACE financing to commercial property owners statewide.
Adam Moskowitz (Counterpointe)
Jessa Coleman (MD-PACE)
Source: Counterpointe Sustainable Real Estate
Categories: Real Estate