Hilton Universal City Announces Nation's Largest PACE Energy Efficiency Project
Green Building Financial Tool Funds $7M in Upgrades
December 12, 2013
The Hilton Los Angeles/Universal City recently became the largest commercial use of Property Assessed Clean Energy (PACE) financing, using the energy efficiency loan program to fund $7 million in sustainable upgrades to the property.
Hilton's project will lead to an estimated annual energy savings of $800,000 and water savings of $28,000, conserving more than 2.8 million gallons of water.
Under PACE, state and local agencies may set up programs for commercial landlords and other owners to obtain financing for such energy projects as solar installations, reflective roofs and lighting, window and HVAC upgrades. Borrowers repay the loans through lien-based special assessments on their property taxes over 15 to 20 years.
In Los Angeles County, commercial, industrial and multifamily property owners can choose their own PACE project investor and negotiate their own rate and terms. The Hilton project is the second project launched since the county formed a team of PACE experts last year to assist building owners.
L.A. County has 39 existing PACE financing applications in the project pipeline totaling more than $36 million worth of sustainable upgrades.
"Hilton Los Angeles/Universal City is paving the way for other large commercial property owners to utilize LA County PACE financing to fund their green building upgrades, showcasing our County’s commitment to green building." said L.A. County Supervisor Zev Yaroslavsky, who represents Universal City and the surrounding area.
The project includes energy efficiency glass installations and new LED lighting that will reduce energy consumption by 50%. The installation of 500 low-flow shower heads and the replacement of 250 bathtubs with showers will save 2.8 million gallons of water annually, equivalent to one month of the property’s existing water usage.
Additionally, Hilton will receive utility rebates and tax incentives of approximately $1 million. Other upgrades include window film, elevator upgrades, chiller plant replacements, energy efficiency glass and controls as well as EV charging stations.