The Black Desert Resort, located near Zion National Park in Ivins, Utah, has launched its first phase with a soft opening this October. This massive 630-acre project includes a resort hotel, spa, a golf course, around 1,000 condos, and 190,000 square feet of commercial space featuring shops and restaurants.
Focusing on sustainability, the resort has utilized Commercial Property Assessed Clean Energy (C-PACE) financing to implement energy-efficient HVAC systems, insulation, earthquake-proofing, and water conservation strategies. Jon Day, CFO at Reef Capital Partners, the resort’s owner, stated, “We aimed to develop the property in a way that is environmentally friendly and that the community will appreciate.” He underscored the importance of conserving water in Utah’s desert environment.
Patrick Manning, the managing partner, highlighted further sustainable features, including a low-voltage power system that uses only 10 volts for lighting, security cameras, and door locks throughout the property. He described the financing process via C-PACE as seamless and critical in financing projects that traditional banks typically wouldn’t support.
Petros PACE Finance provided $153 million in C-PACE financing, marking this as “the largest single transaction in C-PACE history” when it closed last October. The resort secured a 30-year agreement with a 7% interest rate and a 25-year amortization period.
C-PACE financing is becoming increasingly popular, enabling commercial real estate owners to fund sustainable upgrades. It allows for long-term, fixed-rate financing for projects that promote energy and water efficiency. Interest rates can start at around 7%, making it an attractive option for organizations looking to improve sustainability without high upfront costs.
However, C-PACE financing varies by state, each having its own regulations and requirements. This has made it more challenging for businesses with properties across different states to navigate the process. Overall, as C-PACE programs expand, they could play an essential role in financing sustainable projects that contribute to a greener future in real estate.