Commercial, Energy Efficiency - November 5, 2018
Hotel Indigo goes green
Hotel Indigo, located in downtown Rochester, MN, will receive $2.5 million in C-PACE funding from CleanFund to include green attributes as part of a re-branding and overhaul, including energy-efficient HVAC, upgraded windows for efficiency and soundproofing, and LED lighting along with low-flow water fixtures.
The 178-room hotel is undertaking a $20 million rehab-redesign of a former Holiday Inn to create a fully modernized, amenity-laden Hotel Indigo, according to a statement.
With an opening date planned in mid-2019, the new Hotel Indigo will accommodate business, leisure and family travelers. Other improvements related to the redevelopment project include a completely redesigned and renovated main lobby, pool, common areas, and all the hotel rooms.
The finance package by CleanFund included a 20-year term and a rate significantly lower than alternative capital. “We view C-PACE as a valuable financing tool that complements our other sources of capital," said Jason Bass, director of finance at EKN Development Group, the lead member of the project joint venture. "CleanFund's C-PACE financing lowered our weighted average cost of capital for the overall project and allowed us to avoid any value-engineering that can sometimes pressure a project to cut back on green attributes.
The C-PACE improvements will provide primary benefits to the Hotel Indigo but also to separately-owned condominium-office spaces on the ground floor and upper-floor residential condominium homes.
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