New Construction of Fairfield Inn and Suites in Lakewood, CO
$1.1MM in C-PACE Financing for New Construction of Colorado Hotel
Lodging Dynamics Hospitality Group, a hotel developer based in Provo, Utah, built the ground-up new construction of a 67,500-square-foot Fairfield Inn and Suites located at 140 South Union Boulevard in Lakewood, Colorado.
Efficient buildings are important to the hospitality industry, which uses a lot of energy ensuring their guests are comfortable. The developers designed the building to meet and exceed IECC 2015, an international energy conservation code, but needed an efficient financing mechanism to make the design viable.
The capital stack included a $12.68MM construction loan, $4.7MM in equity, and $1.2MM in C‐PACE financing totaling $18.6MM. Since the C-PACE improvements were complete upon closing of the C‐PACE financing, one lump sum reimbursement was made to the property owner.
The $1.18MM in C-PACE financing was utilized to incorporate various energy efficiency design features into the 128‐room Fairfield Inn and Suites. CleanFund’s financing filled a critical gap in project’s capital stack and lowered the overall weighted average cost of capital. The project is expected to generate $41,400 in annual energy savings and annual CO2 reduction of 1,180 tons.
“C-PACE financing filled a critical gap in our financing stack and lowered our weighted average cost of capital. Even better, it enabled us to build a more efficient building. This is a major plus in the hospitality industry, which uses a lot of energy to ensure that our guests are comfortable during their stay.”