Minneapolis, Minnesota (April 29, 2024) – PACE Loan Group recently completed the third tranche of C-PACER financing for The Aviator Hotel, a 250-room hotel currently being renovated in the heart of downtown Anchorage, Alaska. With the latest round of $10 million, the hotel will have received $16.75 million in Commercial Property Assessed Clean Energy & Resilience (C-PACER) to support the renovation and upgrades to the 1970s-era hotel recently being used as transitional housing into a Class A hotel.  

Once the renovation is complete in late 2024, the Aviator Hotel will have 250 rooms and suites, a retail store and coffee shop, a brewery, and a bar and restaurant with a year-round outdoor deck with views of Denali. Renovation of the property started in 2022; to date, 61 rooms have been completed with the renovation of all units expected to be completed by the end of 2024. PLG has placed two prior C-PACER assessments on this property totaling $6.5 million, and with this assessment, would hold $16.75 million of total C-PACER assessed against the property.

Mark Begich, former United States Senator and Mayor of Anchorage, and Sheldon Fisher, former Commissioner of the Alaska Department of Revenue, have partnered together to purchase and renovate The Aviator Hotel as part of their effort to revitalize downtown Anchorage. The property is a prime location for the ceremonial start of the Iditarod Trail Sled Dog Race, fireworks on New Year’s Eve, and walking just two short blocks to the Anchorage Museum.

“When we set out to take on big projects and revitalize downtown Anchorage, we knew it wouldn’t be easy. We are pleased that C-PACER has been a part of making this hotel more energy efficient and making the economics of the larger project doable,” said Begich and Fisher.

Northrim Bank, an Alaska community bank, has also assisted in establishing the relationship between the Aviator Hotel, the Municipality of Anchorage, and PACE Loan Group. “We applaud the work done by these groups and congratulate the Aviator Hotel on receiving this round of financing. The bank recognizes the significant investment in downtown Anchorage that this financing provides. By being creative and utilizing the CPACER program, the Aviator Hotel is committed to reducing energy use and revitalizing an existing building in Anchorage,” said Mike Huston, president/CEO - Northrim Bank

The C-PACER loan is funding the renovation and building resiliency of the three-story hotel, including energy conservation measures such as HVAC upgrades, building envelope, water fixtures, lighting, insulation, snow-load management, and energy-efficient heating. The energy conservation measures are expected to save an average of $259,773 annually over the next 30 years and the resilience improvements will increase the building’s resistance to extreme weather events.

All three C-PACE loans originated for the Aviator Hotel required collaboration with other municipal and private funding sources, said Rafi Golberstein, CEO and founder, PACE Loan Group. “That’s why it is crucial to have a strong team working together to finalize C-PACE loans. Matthew McCormack, senior vice president-Originations at PLG, handled this process masterfully,” he said.  This loan is the largest use of C-PACER capital in Alaska to date.

The Anchorage C-PACER program is administered by the Municipality of Anchorage. Director Melanie Lucas-Conwell, noted, “I’m thrilled to see the Aviator Hotel continue to use the C-PACER program as a key part of their capital stack. This project is an example of remarkable leadership that will benefit our community and our economy, setting a new standard for years to come. Thank you to all those involved in making it happen.”

Media Contact:

Martha Nevanen

Martha@paceloangroup.com

651-492-5861