Greenworks Lending Closes its First PACE Wisconsin Deal, a Revitalization Project: Hotel Indigo

by | Jan 23, 2018 | Press Releases

  • Former Mautz Paint facility in Madison, Wisconsin (Dane County) takes advantage of C-PACE funding through PACE Wisconsin, a first in the state for national capital provider Greenworks Lending.
  • Commercial PACE (C-PACE) financing will support energy efficient components of redeveloping the 102-year-old warehouse into a boutique hotel.
  • Over the life of the planned energy efficiency improvements, the building owner will capture an estimated $1.9 million in energy savings.

Madison, WI – Kleuter Building, LLC, the owner of the five-story brick façade building at 901 East Washington Avenue in Madison, has closed Greenworks Lending’s first PACE Wisconsin financing of energy improvements and renewable energy investments to be made by commercial property owners.  The property most commonly known as the Mautz Paint building and prior, home to the grocer Kleuter & Co, is being redeveloped after 15 years of vacancy into the Hotel Indigo.  Energy savings measures will include the building envelope and energy efficient HVAC.

“A key component of this adaptive reuse project is to maintain the historic 5-story brick façade,” stated Kevin Page, of KP Property Development, developer and co-owner of the project, along with Kothe Real Estate Partners, Great Lakes Management Group, and Jim and Marlene Korb. “To do that without addressing energy efficiency would be detrimental to the project.”

The hotel design features new historic replica windows, energy efficient aluminum window wall glazing systems and other insulation measures. From a mechanical infrastructure standpoint guest comfort will be supported by high efficiency HVAC and lighting systems.

“Because these measures will save a significant amount of energy Greenworks Lending, a private capital provider dedicated to commercial PACE lending, is able to provide financing for the energy efficient aspects of this construction project through our state-wide program,” explained Jason Stringer, Program Administrator for PACE Wisconsin.

Brad Elmer, Managing Director in Baker Tilly Capital’s incentive advisory practice who structured the PACE financing for the Hotel Indigo project stated, “our clients are finding commercial PACE to be an important piece of the overall capital stack for both redevelopments and new projects.”

For commercial properties the PACE Wisconsin program, as with The City of Milwaukee C-PACE Financing Program and C-PACE programs in more than 16 other states, allows for the private finance of energy saving infrastructure and renewable energy systems through a special tax assessment to the property. Terms of repayment are synced to the useful life of improvements, so projects are typically cash flow positive from day one.

“We are excited to have completed this first deal with PACE Wisconsin, particularly because the Hotel Indigo project represents both ends of the spectrum for C-PACE financing – it can be used for both retrofitting existing commercial properties as well as for new construction,” explained Greenworks Lending CEO and Co-founder Jessica Bailey. “This project also confirms the utility of C-PACE for hotel properties as it marks the third state in which we have provided financing for a hotel project,” she continued.

Dane County adopted PACE Wisconsin in early 2017. There are 27 counties currently participating in PACE Wisconsin. County participation continues to grow as communities recognize the potential to stimulate economic development and reinvestment in local communities through clean energy improvements to commercial properties. The statewide program is administered by Energy Finance Solutions (EFS), the financial services division of Madison-based nonprofit WECC.

We are thrilled to see the first PACE Wisconsin project achieve this milestone,” said Mary Woolsey Schlaefer, President and CEO of WECC. “What started as a vision six years ago is now a reality—Wisconsin communities can revitalize aging buildings and incorporate energy efficiency improvements with affordable and accessible financing. The Hotel Indigo project shows that PACE financing works, and will play an important role in community reinvestment,” she said.

About Greenworks Lending:
Led by several of the industry’s founding policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial property owner investment in renewable energy and energy efficiency projects through state legislated C-PACE (Commercial Property Assessed Clean Energy) programs on a national level. For more information visit www.greenworkslending.com.

About PACE Wisconsin

PACE (Property Assessed Clean Energy) drives economic development by authorizing municipalities and counties to work with private sector lenders to provide upfront financing—usually for 100 percent of the cost of energy-saving improvements—to property owners for qualified projects.

PACE Wisconsin offers an open-market solution for building owners in participating Wisconsin communities. To offer PACE Wisconsin, counties must pass a resolution authorizing execution of the Joint Exercise of Powers Agreement (JPA), and pass the Model PACE Ordinance through the county board of supervisors. Interested communities should contact the administrator at info@pacewi.org or view more information at www.pacewi.org.

 About Energy Finance Solutions (EFS)

WECC’s EFS specializes in financing program consultation, design, and delivery services in support of energy efficiency and renewable energy improvements. Through partnerships with utilities, contractors, and other agencies, EFS offers customers simple, affordable ways to finance energy improvements. EFS is the financing services division of WECC.

Featured image (top)

Former Mautz Paint warehouse at 901 East Washington Avenue, Madison, WI” by Richard Hurd is licensed under CC BY 2.0

Media Contact

Adam Moskowitz
amoskowitz@greenworkslending.com

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