C-PACE Investment Powers the Four Seasons Hotel and Skyline-Defining Tower
RBC Gateway, a striking 37-story glass and steel tower on Nicollet Mall, has redefined the Minneapolis skyline with its bold design and ambitious mixed-use development. Developed by United Properties, the $433 million project delivers:
- The city’s first Five-Star Four Seasons Hotel
- 34 luxury condominiums with skyline views
- A public plaza and green space
More than 531,000 sq. ft. of office space housing RBC Wealth Management, JLL, and several Pohlad Companies
PACE Financing: Driving Innovation
To make this vision a reality, United Properties turned to a $20 million Property Assessed Clean Energy (PACE) loan—the largest in Minnesota history. Provided by PACE Loan Group through MinnPACE, the financing supported energy-saving upgrades such as:
- High-performance glass from Minnesota’s own Viracon
- LED lighting with occupancy sensors for daylight harvesting
- Advanced HVAC and water systems
These improvements not only cut long-term operating costs, but also created budget flexibility for luxury amenities like an indoor pool, elegant ballrooms, and refined guest suites.
Why PACE Works for Hotels
Hotels are emerging as a strong fit for PACE financing. As traditional lenders reduce loan-to-value ratios, PACE provides an attractive alternative. With rates near 5.35%, PACE loans are far more affordable than mezzanine debt, which often ranges from 11% to 20%.
Overcoming Financing Challenges
Although the project’s lead banker was initially cautious, United Properties worked closely with PACE Loan Group and six financing banks to build confidence in the deal. The final structure delivered a 20-year special assessment, with:
- No balloon payments
- No lender liability
- Long-term stability for all stakeholders