SANTA ROSA, California — Eyzenberg GreenCap, an affiliate of Eyzenberg & Company, has originated a $6.3 million Commercial Property Assessed Clean Energy (C-PACE) loan to retroactively fund eligible energy-efficient upgrades to the Flamingo Hotel in Santa Rosa, Calif.
C-PACE financing, authorized by state statute, is a low-cost, long-term, non-recourse type of capital applicable for eligible energy-saving improvements to a property. The financing mechanism, which is gaining popularity in the hospitality sector, can be applied retroactively — proving to be an efficient solution for many in the current distressed environment.
“We worked with the client to review and analyze all applicable cost for past and future work to maximize the C-PACE loan.” said Eyzenberg & Company managing director Evan Dockser. “By delivering a cost-efficient alternative we were able to repatriate equity and capitalize remaining renovation costs.”
Despite current economic uncertainty, PACE-enabling programs continue to emerge in new states and municipalities, and active states are seeing more play as developers opt to use C-PACE to complete their capital stack. Borrowers are using proceeds to recoup costs of qualifying already-completed upgrades, fund future renovations, or to pay down expensive interim financing.
David Eyzenberg, president of Eyzenberg & Company, stated, “Given the lack of optionality for flexible structured capital, C-PACE has become the go-to alternative financing tool for hotel transactions”
Eyzenberg Greencap, an affiliate of real estate capital advisory firm Eyzenberg & Company, is a joint venture with leading C-PACE firm Greenworks Lending that is dedicated to funding commercial real estate transactions through C-PACE. Greenworks is the largest C-PACE capital provider in the country, having launched and lead the first C-PACE program and have since closed over 400 projects nationwide.
“The Flamingo Hotel is a great example of how C-PACE financing can be used to recapitalize recently completed energy efficiency projects to help property owners free up liquidity and improve the return of the property,” said Dana White, Greenworks Lending’s California director.