$7,350,000 in debt and $1,500,000 in Pace equity financing
LOUISVILLE, KENTUCKY (November 15, 2019) – Randall Waddell, senior vice president of NorthMarq’s Louisville-based regional office secured $7,350,000 in debt and $1,500,000 in equity financing for the construction of La Quinta del Sol, a 94-unit hospitality property in Louisville, Kentucky. The four-story hotel is located off Old Henry Road in a fast growing area of East Louisville near the interchange with I-265.
With modern architecture, La Quinta’s Del Sol brand combines iconic brand elements with elegantly clean geometric lines. The select-service hotel which is expected to be completed by summer 2020 will cater to midscale and upper-midscale travelers looking for a warm and comfortable experience at attainable rates. La Quinta is one of 20 brands held by Wyndham Hotels & Resorts, the third largest hotel room operator in the world.
The environmentally responsible aim of the new building was a natural fit to utilize PACE Equity funding, which provides low-cost private capital to building projects with sustainable energy goals. PACE funded projects are secured by a special assessment on the property, allowing building owners to access long term, fixed rate, non-recourse low-cost capital.
NorthMarq arranged financing for the borrower through its relationship with a local bank along with a national provider of PACE equity. One of the first PACE financings in Kentucky, the closings had to be coordinated which added complexity to the transaction. “Our banking partner embraced the involvement of PACE equity which will hopefully lead to other future transactions building on this experience,” said Waddell.