ANNAPOLIS, Md. and
OLD GREENWICH, Conn., Oct. 4, 2018 /PRNewswire/ -- Hannon
Armstrong Sustainable Real Estate (HASRE) – a previously announced
strategic alliance of Hannon Armstrong Sustainable Infrastructure
Capital, Inc. ("Hannon Armstrong,")
(NYSE: HASI) and Counterpointe Sustainable Real Estate, LLC (CSRE)
– announced today that it has closed a $10.5
million, 25 year, Commercial Property Assessed Clean Energy
(C-PACE) financing for energy efficiency measures and seismic
strengthening of a new Hyatt Centric Hotel in downtown Sacramento, California.
The Hyatt Centric Hotel, which will be constructed at 1128
7th Street – the site of the landmark Hotel Clayton
(built in 1911) – will be a 172 room, 11 story, 'upscale' property,
adjacent to the Golden 1 Center, the home of the NBA's Sacramento
Kings. The new construction will preserve and integrate the
original façade of the 1911 building.
"We are very excited to play a role in financing this highly
resilient and sustainable Hyatt-brand hotel," said Eric Alini, managing partner at HASRE. "As more
travelers expect environmentally responsible lodging, hotel
properties are an ideal use of PACE financing. Property owners can
use PACE to increase guest comfort and satisfaction and preserve
capital and equity at the same time," Alini continued.
By utilizing PACE instead of a larger first mortgage, Hyatt
Centric was also able to save an additional $1.5 million in interest payments over three
years.
CBRE Senior Vice President Marc
Sallette, added, "PACE filled a very important gap in the
capital stack to complete this loan and get construction of the
Hyatt Centric underway. We have found it to be a great tool for
hotels to take advantage of. When property owners can invest
in energy efficient buildings and upgrades, it's a win-win for
everybody."
"We were thrilled to work with the HASRE team to help include
their PACE financing on this trophy project in downtown
Sacramento," said Malcolm Davies, the Principal/Managing director
of George Smith Partners. "They worked tirelessly to help educate
the borrower, the corresponding lenders and the City of Sacramento on this important piece of
the capital stack."
PACE programs make energy conservation and efficiency, renewable
energy and seismic and water conservation improvements affordable
for property owners by providing fixed-rate financing for 100% of
the project and closing costs, repaid through an assessment on
property tax bills.
Participation is entirely voluntary for both municipalities and
property owners. A growing number of cities and counties are
partnering with multiple PACE providers to increase financing
choices available to consumers. Counterpointe Energy
Solutions is a leading PACE Program Administrator responsible for
commercial PACE programs in several states, including California.
About Hannon Armstrong Sustainable Real Estate
Hannon
Armstrong Sustainable Real Estate (HASRE) is the strategic alliance
formed by Hannon Armstrong and CSRE
to finance energy efficiency retrofits and clean energy projects.
The focus is on major developers, owners, and property managers of
office buildings, hotels, multi-family housing, and other
commercial real estate assets. HASRE is a single source with the
expertise, resources and financial strength to get a project done,
increase its bottom line and help create a more sustainable,
resilient world. CSRE provides turnkey solutions for PACE programs
to municipalities, program managers, and administrators through a
cutting-edge web-based platform for originating, underwriting,
funding, and servicing PACE assessments and bonds.
About Hannon Armstrong
Hannon
Armstrong (NYSE: HASI) is a capital and services provider
to the sustainable infrastructure markets focused on reducing
climate changing greenhouse gas emissions ("GHG" emissions) as well
as mitigating the impact of, or increasing resiliency to climate
change. With scientific consensus that climate warming trends are
linked to human activities we believe our firm is well positioned
to generate better risk-adjusted returns by investing in the assets
that reduce carbon emissions. We are based in Annapolis,
MD.
Forward Looking Statements
Some of the information
in this press release contains forward-looking statements and
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. When used in this press release, words such as "believe,"
"expect," "anticipate," "estimate," "plan," "continue," "intend,"
"should," "may," "target," or similar expressions, are intended to
identify such forward-looking statements. Forward-looking
statements are subject to significant risks and uncertainties.
Investors are cautioned against placing undue reliance on such
statements. Actual results may differ materially from those set
forth in the forward-looking statements. Factors that could cause
actual results to differ materially from those described in the
forward-looking statements include those discussed under the
caption "Risk Factors" included in our Annual Report on Form 10-K
for our fiscal year ended December 31,
2017, which was filed with the U.S. Securities and Exchange
Commission ("SEC"), as well as in other reports that we file with
the SEC.
Forward-looking statements are based on beliefs, assumptions
and expectations as of the date of this press release. We disclaim
any obligation to publicly release the results of any revisions to
these forward-looking statements reflecting new estimates, events
or circumstances after the date of this press release.
Contact: Investor/Media Relations
Phone:
410-571-6189
Email: investors@hannonarmstrong.com
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SOURCE Hannon Armstrong Sustainable Real Estate