Rendering of the 240-key Homewood Suites and Hilton Garden Inn to be built in Easton, Ohio.
PACE Equity recently completed funding for the largest new PACE construction project in Ohio, a sustainable Homewood Suites and Hilton Garden Inn to be constructed in Easton.
The project reflects the developer's commitment to the environment while meeting demands of the new generation of green travelers. The 175,000-sq.-ft., 240-key hotel takes advantage of innovations in sustainable design and building technology, making a significant difference in both its environmental impact and cost of operation.
PACE Equity funded 22 percent of the capital stack, approximately $10.4 million out of a $47.5 million capitalization. The construction lender provided another $26.25 million, and developer Middletown Hotel Management Company Inc. contributed the remainder.
By using PACE Equity funding, the project's investor return rate (IRR) improved by 35 percent and the multiple of invested capital increased 47 percent. PACE Equity also added value by providing a turnkey solution handling all governmental PACE requirements, district engagement, and program approval management and providing a utility impact and engineering analysis.
"There is a direct correlation between environmental benefits and economic benefits. Sustainability today is a best building practice," said Har Bhatnagar, president and CEO of Middletown Hotel Management Company Inc. "Integrating green building strategies into the design and construction of the Homewood Suites and Hilton Garden Inn makes good business sense and PACE Equity is helping us meet our clean energy goals."
The environmentally responsible aim of the new build was a natural fit to utilize PACE Equity funding, which provides low-cost private capital to building projects including projects with sustainable energy goals.
The Homewood Suites and Hilton Garden design incorporates an optimized HVAC system that includes energy recovery make-up air technology and a geothermal system. It features a high-performance building envelope, has complete interior and exterior LED lighting, and uses low-flow plumbing fixtures throughout.
Utility impact modeling of the Homewood Suites and Hilton Garden Inn design against the International Energy Conservation Code 2012 shows the building will perform 32 percent better on an energy-consumption basis than required by the stringent IECC code — saving nearly 5 million BTUs per year.
With a projected utility cost of $1.61 per sq. ft., the building is expected to save 52 cents per square foot annually, a 32 percent energy cost savings.
The new Homewood Suites and Hilton Garden Inn will fulfill the need for a high-quality hotel space in the trendy Easton Town Center to further accommodate the 26 million visitors the district receives each year. Offering extended stays as a home away from home, and shorter visits in an open, inviting atmosphere.
"Middletown Hotel Management Company is a very well organized and sophisticated developer," said David Oliverio, the Greater Cincinnati Area market leader for PACE Equity. "We thoroughly enjoyed working with their highly professional team bringing this new, eco-friendly hotel development to Easton Town Center."
For more information, visit www.pace-equity.com.