Dallas PACE Program Executes Second Deal for Swexan Hotel – Dallas Economic Development News

https://dallasecodev.org/653/Dallas-PACE-Program-Executes-Second-Deal

Harwood International’s Swexan Hotel is receiving a second round of PACE financing, contributing an additional $8.5 million towards sustainable improvements as part of the City of Dallas’ Property Assessed Clean Energy (PACE) program. PACE is an innovative financing initiative that allows owners of commercial, industrial, and multi-family residential properties with five or more dwelling units to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements, and renewable retrofits. Property owners can access private, affordable, long-term financing, typically for 10 to 20 years, that is not available through traditional funding avenues.

The Swexan is a 22-story boutique hotel located at the corner of McKinnon and Moody streets, just west of the Crescent and the Tower Residences Ritz-Carlton condo building. In November 2022, the hotel received nearly $40 million in PACE financing for mid-construction funding, which allowed the developer to avoid the need for additional equity to cover cost overruns for high-efficiency energy and water-saving equipment.

The additional $8.5 million in PACE financing will be used to implement new and finance previously constructed sustainable improvements to the building’s lighting and electrical systems. Post-construction financing of TX-PACE projects can occur up to 24 months after the date the last qualified improvement was installed, provided all other Texas PACE in a Box underwriting and technical standards are met.

This project is made possible by Texas PACE Authority, the City of Dallas’ third-party administrator for the PACE financing program. Texas PACE Authority is a nonprofit organization that advances Property Assessed Clean Energy (PACE) projects in Texas by administering a uniform commercial and industrial PACE program on behalf of local governments.

The PACE lender, PACE Equity, collaborated with developer Harwood International.

In 2016, Dallas was the first Texas city to implement a PACE program at no cost to taxpayers. The Dallas PACE program has facilitated a cumulative investment of more than $112 million in energy and water-saving improvements, approximately one-third of the total PACE investment in Texas. PACE projects also contribute to the goals of Dallas’ Comprehensive Environmental Climate Action Plan. 

For more information, visit: City of Dallas PACE Financing Program and Texas PACE Authority.

Photo Credit:  Harwood International