Greenwich, CT (July 17, 2019) — Hannon Armstrong Sustainable Real Estate (HASRE) announced that it has closed a $1.79 million, 15-year, Commercial Property Assessed Clean Energy (C-PACE) financing deal with LDI Management Company to support the renovation of a 237 key hotel in Cincinnati, Ohio.
Originally built in 1963, the 13-story, 237 room hotel was purchased by LDI in 2016 and has operated as the Ramada Plaza. When upgrades are completed to the well-known hotel located next to the Sharonville Convention Center and attached to Splash Cincinnati, it will change brand flags and become the Delta Hotels Marriott Cincinnati per an agreement reached this year.
The energy efficiency improvements (“EEI”) to be funded through the PACE program by Hannon Armstrong Sustainable Real Estate include elevator/escalator upgrades, high-efficiency lighting fixtures, HVAC, water heaters, building automation, commercial appliances, and a cool roof.
LDI vice president and co-owner, Sanjay Tibrewal noted that the availability of PACE financing in Ohio contributed greatly to the improvements planned for the property.
“Three years ago we weren’t aware of PACE financing,” recalls Tibrewal. “At that time we knew we were going to make a significant additional investment in improving the property, but we were not thinking of doing everything as energy-efficient as possible. PACE and the advice we received from the Greater Cincinnati Energy Alliance and Hannon Armstrong allowed us to go full tilt for energy savings.”
Hannon Armstrong Sustainable Real Estate, a specialty commercial PACE lender, worked through the OHIO PACE program and Greater Cincinnati Energy Alliance to provide the private capital in support of the redevelopment.
“The $1.79 million provided by Hannon Armstrong is earmarked for the energy-efficient aspects of the property’s development, but it expands the total amount of investment LDI is able to make in the building,” stated Chris Jones, Director of PACE financing at the Greater Cincinnati Energy Alliance. “One of the core advantages of C-PACE is that you can reduce your capital costs, increase the amount of available capital or both.”
The project demonstrates Hannon Armstrong Sustainable Real Estate’s continued growth in the Ohio PACE market.
“The state of Ohio is a strong PACE market,” stated Eric Alini, Managing Partner of Hannon Armstrong Sustainable Real Estate. “There are a number of metropolitan areas with older building stock in need of renovation and retrofit, while there is a good amount of new construction across the state. Moreover, the commercial real estate community has familiarity with PACE as a financing tool so the adoption process is shorter,” he continued.
About Hannon Armstrong Sustainable Real Estate
Hannon Armstrong Sustainable Real Estate is a strategic alliance between Hannon Armstrong (NYSE: HASI) and Counterpointe Sustainable Real Estate (CSRE). The partnership leverages Hannon’s efficiency and renewable energy finance capabilities with CSRE’s relationships, real estate expertise, and comprehensive knowledge of Commercial Property Assessed Clean Energy (C-PACE) programs. For more information, visit hasre.com.
About OHIO PACE
OHIO PACE is a program administrator that facilitates PACE financing in conjunction with local governments and private PACE capital providers & contractors to ensure the successful funding and installation of energy efficiency and renewable energy improvements. To learn more about OHIO PACE, visit ohpace.org.