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Historic Office Building Turned Luxury Hotel in Baltimore uses C-PACE to Finance Energy Efficiency Improvements | Maryland Commercial PACE


August 10th, 2020


ASH NYC and Twain Financial Partners have closed a C-PACE deal worth almost $4.0 million to retrofit the historical Latrobe Building, setting the Maryland market for largest amount of C-PACE financing accessed in the state.


BALTIMORE, MD. – In June of 2017, ASH NYC acquired the historic Latrobe Building in Baltimore. With this historic Mt. Vernon property, ASH NYC will continue its successful strategy of preserving urban landmarks and updating them with modern energy efficiency improvements, climate control appliances, and innovative building design. The Latrobe Building is poised to become the fourth project in ASH NYC’s hospitality portfolio, preserving the unique cityscape of Baltimore while using C-PACE financing to access almost four million dollars of energy efficiency related building improvements. The Savings to Investment Ratio (SIR) for this project is predicted to be 1.19, a sizable return on investment. The Latrobe Building project represents the largest single C-PACE financed project in Maryland, and one of the largest in the Mid-Atlantic.


Currently a Class B/C office building, it will undergo a wide variety of developments and retrofits to become a high efficiency property. The scope of this work includes new automated building and HVAC controls, high efficiency improvements to the building’s lighting, water heating, and inside climate appliances, and other controls and improvements that reduce energy and water use. This capital-intensive undertaking will utilize almost four million dollars of C-PACE financing to cover eligible project expenses, deferring repayment of such expenses over the estimated useful life of the proposed improvements. ASH NYC elected to apply for C-PACE financing for a multitude of reasons, including their corporate commitment to efficiency, their desire to improve liquidity and short-term realized ROI, and the convenience of C-PACE transferability to subsequent owners. The C-PACE financing for this project represents one portion of a $29.2m capital stack for property improvements.


The lender who will finance the C-PACE eligible improvements to Latrobe is Twain Financial Partners. This Missouri-based financier has an active PACE lending division, but the Latrobe Building will be its first C-PACE project in Maryland to date. Twain Financial Partners has financed many historical renovation projects across the country and brings this experience to bear for the redevelopment of this majestic Baltimore property. Said Paul Thompson, Business Development Officer of Twain Financial Partners East Coast operations, “Twain is privileged to be part of ASH NYC’s contribution the Baltimore hospitality market.  The Latrobe project is benefited by a beautiful building that is paired with an exciting concept that is both unique and iconic.”


Work on the Latrobe Building will commence in the summer of 2020, led by the Baltimore-based Southway Builders. Southway brings to the Latrobe project nearly 30 years of building experience in the Mid-Atlantic and a commitment to quality, dependability, and integrity that is at the heart of all their projects. This philosophy extends not only to their work, but also to the communities in which they are contracted and to their employees; for each of the last five years Southway Builders has received the Diamond Safety Award from Baltimore’s Associated Builders and Contractors (ABC), the ABC’s highest level of safety certification. Furthermore, Southway has an extensive history of contracting for historical renovations, many of which are located in Baltimore.


In Maryland, C-PACE is eligible for improvements to a property that will reduce its energy or water use or improve resiliency. For years the hospitality industry has seen the value of using C-PACE to provide immediate financing for necessary improvements and to create utility savings, reduce waste, and improve guest comfort. C-PACE can be a useful component of a hotel development’s capital stack for several reasons. First, the longer repayment of a C-PACE assessment in contrast to traditional lending enables savings to be felt faster, as early as the first year. Second, C-PACE financing is non-recourse which makes it a safer form of lending but is flexible in that it allows early repayment. Finally, C-PACE runs with the property rather than the initial borrower so it does not remain burdensomely tied to the developer if they must sell or move on from the property. These advantages are clearly felt by the hotel industry as hospitality is becoming the most rapidly growing segment of C-PACE. C-PACE is also being relied on for greater amounts of the capital stack, in 2020 accounting for 15%- 25% of a project’s total costs.


If you are interested in C-PACE or want to learn more about the MD-PACE Program, please contact:


Marcus Glomset


508 736 8876