Hotel Indigo in Rochester, Minnesota
Multi-use property, 178-room Hotel Indigo and Home Owner Association (HOA)
220 S. Broadway in downtown Rochester, MN is undertaking a $20 million rehab-redesign of a former Holiday Inn to create a fully modernized, amenity-laden Hotel Indigo. 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.
EKN Development Group, the lead member of the project joint venture, needed low-cost, non-recourse capital that would allow them to avoid any value-engineering and cut backs on green attributes.
The attractive financing package delivered by CleanFund included a 20-year term and a rate significantly lower than alternative capital. More and more hospitality and mixed-use projects are integrating C-PACE financing as part of their overall capital strategy as companies like EKN see the benefits to their bottom line and for their properties’ guests and tenants.
With CleanFund’s financing enabling a lower cost of capital, the redevelopment project was able to include the ‘green’ attributes that today’s hospitality guests demand, such as energy-efficient HVAC, upgraded windows for efficiency and sound proofing, and LED lighting along with low-flow water fixtures.
“We view C-PACE as a valuable financing tool that complements our other sources of capital. CleanFund's C-PACE financing lowered our weighted average cost of capital for the overall project and allowed us avoid any value-engineering that can sometimes pressure a project to cut back on green attributes. No doubt, it’s a better building with C-PACE.”