NEWS: PACE Loan Group Closes $13.8 Million C-PACE Loan for Hotel Conversion to Workforce Housing near Disneyworld
Largest C-PACE conversion financing in Central Florida
Minneapolis, Minnesota (July 24, 2023) – PACE Loan Group (PLG), a national leader in Commercial Property Assessed Clean Energy (C-PACE) financing, closed a $13.82 million C-PACE loan for a 151-room conversion from a hotel into attainable, workforce housing in Kissimmee, Osceola County, Florida. The borrower plans to complete the renovation and open the low-rise/garden apartment complex, located at 2950 Reedy Creek Blvd., in May 2024.
PACE Loan Group partnered with the Florida Development Finance Corporation (FDFC) and their C-PACE Program. C-PACE allows property owners to obtain financing using a special assessment on their property tax bill as the repayment mechanism. This loan is the largest C-PACE for a renovation/retrofit in Central Florida and the third largest in the FDFC’s C-PACE program’s history.
The financing package also includes a $9.1 million loan from a regional bank. Infiniti Loft Investors bought the vacant, non-operating asset following a previous complete gutting of the interior following a hurricane.
“The borrower utilized C-PACE financing in a very tough financing market in order to reduce their cost of capital, increase leverage, and lower their recourse exposure,” said Matthew McCormack, senior vice president – Originations, PACE Loan Group.
The PACE proceeds will be used to finance energy conservation and renewable energy measures. Qualifying projects include increased building insulation, LED lighting, high-efficiency windows, HVAC, and plumbing and DHW fixtures. The renewable and energy conservation measures are expected to save $447,990 annually. The property, built in 1972, had been completely gutted by the previous owner.
For this transaction, the Florida Development Financing Corporation (FDFC) worked closely with PLG to ensure the C-PACE program was available to the property owner and that all requirements of the program were being met. The Florida C-PACE program has completed 29 loans valued at $160 million since it was approved by the Florida legislature in 2016.
“We appreciate the public-private partnership with PACE Loan Group that allows the FDFC to impact economic development in Florida,” said Ryan Bartkus, senior director – FDFC.
Media Contact:
Martha Nevanen
651-492-5861
About PACE Loan Group
PACE Loan Group (PLG) is a national leader in the C-PACE marketplace, providing direct C-PACE financing to commercial property owners. The PLG team provides expertise up and down the capital stack. To learn more about PLG, visit our website at www.paceloangroup.com.
About Florida Development Finance Corporation
Florida Development Finance Corporation (“FDFC”) is a Florida special development financing authority, created in 1993. The FDFC supports economic development by acting as a conduit issuer for businesses to access capital for project financing. The mechanisms for accessing capital markets are Commercial PACE along with tax-exempt and taxable bonds.