CleanFund provides $ 21.6 million in construction debt for the development of a luxury boutique hotel in New York’s Hudson Valley in SY participations, Commercial Observer can make a first report.
The loan for Wild flower farms, a 65-room hotel in Gardiner, NY, marks the largest transaction to date under New York’s Commercial Property Assessed Clean Energy (C-PACE) program, designed to help borrowers achieve energy efficiency or renewable energy projects through a special evaluation of their Properties. The deal is also the first C-PACE loan for new construction from the Empire State and one of the few new hotel construction projects in the country to be funded since the start of the COVID-19 pandemic in March 2020. .
âThe fact that this was one of the very few hotel construction projects to be funded in the COVID era speaks volumes about the developer’s expertise and creativity,â said Luke Hingson, CleanFund Vice President, East Coast Business Development, behind the C-PACE funding. “It also serves as evidence that C-PACE financing can add significant value to commercial real estate projects when more traditional forms of financing are not available or are too expensive.”
Wildflower Farms plans to operate as one of the greenest hotels in the country. with an opening scheduled for autumn 2022. The development, which will be managed by the Auberge Resorts Collection, has received the Designed to earn ENERGY STAR certification to meet US Environmental Protection Agency energy efficiency criteria. The project will also subscribe to community solar power, enabling a lower carbon footprint to help reduce greenhouse gas emissions.
Located at 2702 Main Street About 90 miles north of Manhattan, the 141-acre property will feature a restaurant, spa, cooking school, and farm with river and mountain views. The land is located near the entrance to Mohonk Preserve, a hiking, biking and climbing destination that receives more than 500,000 annual visitors.
“This transaction required ingenuity and close collaboration between all stakeholders in particularly difficult market conditions for new constructions and hotels,” Kristin soong Rapoport, managing partner of SY Holdings, said in a statement. “This marks the start of an ecological recovery for New York.”
NY Green Bank, a division of New York State Energy Research and Development Authority, provides a $ 25 million senior development loan. CleanFund said NY Green Bank support could result in up to 463 megawatt hours of electricity savings and 484 UK thermal units per year.
“With this investment, we are demonstrating to the market the viability of energy efficiency financing and, ultimately, attracting more capital in this space, to bring us closer to the State’s objectives in terms of climate and clean energy”, Andrew Kesslerthe acting chairman of NY Green Bank said in a statement.