The Millennium Broadway is a 750-room business and tourist-oriented hotel in the Theater District.
The hotel wanted to install a cogeneration system, alongside other HVAC-related energy efficiency measures.
NYCEEC provided a $6.0M construction loan to enable construction to commence.
- Project type: Cogeneration and energy efficiency
- Total project cost: $7.8M
- Financial product: Power purchase agreement
- NYCEEC role: $6.0M construction loan
THE CLIENT CHALLENGE
The Millennium Broadway is a large business and tourist-oriented hotel in the Theater District. The hotel wanted a non-debt solution to fund a new cogeneration system and other HVAC-related efficiency measures.
Greenwood Energy, the project developer, sought flexible financing to fund its power purchase agreement for the hotel’s project.
THE NYCEEC SOLUTION
NYCEEC provided a $6M construction loan to the project and developed a financing solution that met the project’s needs, enabling the hotel to use a power purchase agreement.
NYCEEC created a multiple draw loan that matched the construction milestones, with the option of converting its loan to permanent financing.
In addition, NYCEEC financed the incentives in order to bridge the timing mismatch between construction and receipt of incentives.
750kW cogeneration units, 1,400 ton absorption chiller
NYCEEC’s team helped the hotel significantly reduce operating costs and improve building systems and guest comfort.
- Use a power purchase agreement, a non-debt solution to install cogeneration and upgrade
- Improve building performance and resiliency
- Save significant operating costs
- Improve guest comfort
“NYCEEC is great to work with — they’re commercial, flexible and extremely responsive.”
– Douglas Johnsen | Chief Financial Officer, Greenwood Energy (Project Developer)