TULSA – Two Tulsa hotels were built using $4.9 million in energy financing to provide energy-saving building measures.
The Tulsa Club’s 1920s-era building was home to a prominent social club in the city but sat vacant for years before its recent conversion into a hotel. The site of the Holiday Inn Express Downtown Tulsa was previously occupied by two older commercial buildings.
The Ross Group secured $3.2 million in energy financing with Petros PACE Finance, LLC for the recently completed renovation and conversion of the historic building into a 90-room Hilton Curio hotel, in addition to $1.7 million in financing for the construction of the 116-room Holiday Inn Express and Suites — Downtown Tulsa.
The deal marks the first C-PACE transactions to close in Oklahoma.
C-PACE is a relatively new financing tool for energy and water efficiency projects, which has grown quickly in recent years.
As a low-cost, long-term permanent financing product secured as a property tax assessment, it provides developers with an alternative to mezzanine debt and equity that lowers overall capital costs and allows them to invest in higher efficiency building designs.
Ross Group used the funds for efficient heating, cooling, plumbing and lighting systems, along with building envelope improvements.
Oklahoma marks the sixth state where Petros has closed the first C-PACE transaction and expands the firm’s national footprint to eleven states and Washington, D.C.