CleanFund Closes the Largest C-PACE Deal Ever in the Country | Case Study
Salt Lake City’s New Hyatt Regency Hotel at the Salt Palace Convention Center Secures $54 Million in CleanFund C-PACE Financing to Break Ground Immediately
Utah’s Revamped C-PACE Legislation Enables the Most Powerful Public-Private Partnership in the Country, Opening up a Significant Amount of Low-Cost Capital Geared Towards New Development and the Revitalization of Commercial Buildings Throughout the State
Case Study – CLEANFUND
$54.7MM in CleanFund C-PACE financing for the new construction of the Hyatt Regency atop the Salt Palace Convention Center.
December 30, 2019, CleanFund and Salt Lake City announced closing the financing on the $377 million Hyatt Regency new construction project, $54.7 million of which will be funded by CleanFund through the Commercial Property Assessed Clean Energy (“C-PACE”) platform. CleanFund will fund nearly every sustainable upgrade in the new hotel, demonstrating the effectiveness of the state’s new C-PACE legislation towards achieving Salt Lake City’s environmental goals. It also sets a record for the single largest amount ever financed by C-PACE nationally.
With a highly structured capital stack and project of this size, the developers needed cost-effective capital and incentives to make the needed energy efficiency and clean energy improvements. After nearly 20 years of preparation, Salt Lake City wanted the convention center’s hotel new construction project to move forward and with no further tax incentives available, they reached out to the Utah C-PACE program.
The Hyatt Regency Salt Lake City project was a heavily sought-after project with an extremely competitive C-PACE RFP process. In the end, CleanFund provided the most attractive financing package that worked for the developer, Portman Holdings.
CleanFund’s contribution to the $377 million in total project costs will be used to fund C-PACE eligible energy efficiency improvements such as heating and cooling systems, interior lighting and equipment, fans, heat rejection, pumps, and water systems. As a result, the hotel’s energy performance is projected to exceed the energy code compliance level by over 20 percent.