$54.7MM for the New Hyatt Regency Salt Lake City
$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.
“The project has always had an ambitious construction and capital plan and we were fortunate enough to work with talented and capable people with the City and County to learn what sustainable financing resources were available to the project. Once we were introduced to C-PACE, we immediately saw the opportunity to cost-effectively fund the sustainable elements of the project. CleanFund provided the capital in an upfront manner and was a delight to work with. We are very pleased with how they approached the deal and the partnership, especially given the overall complexity of the project.”