208 S. LaSalle Street was originally constructed in 1914 and designed by Daniel Burnham, America’s preeminent architect in Classical Revival style. This Central Business District building, owned and operated by the Prime Group since 2008, features a 16-floor Marriott hotel plus an additional five vacant floors above, each of which has been gutted for renovation. Those five floors represent the future home of The Reserve Hotel, which will feature 232 luxury hotel rooms upon completion. The $73 million development project underway by The Prime Group is supported by $21.25 million in PACE financing.
"Our use of the Chicago PACE program is a function of two strategic factors,” stated Michael Reschke, Chairman and CEO of the Prime Group. “Chicago PACE provides funding that we can direct towards making the best possible energy efficiency and reliability decisions for our property while helping us keep our capital costs down.”
The PACE financed elements (HVAC, window, lighting, and elevator elements as well as water conserving low-flow fixtures) of The Reserve Hotel project will allow the property to save an estimated $3 million in energy savings over the life of the project, a value translated from a projected from electric savings of 954,546 kWh and water conservation of more than 2.7 million gallons annually. Meanwhile, the $73 million development will support more than 1,200 jobs based on American Council for an Energy-Efficiency Economy estimates.
Hannon Armstrong Sustainable Real Estate provided $21.25 million PACE funding for the energy efficient elements of the project. The funding is structured over 25 years and allows the property developer, The Prime Group, to significantly enhance the economics of its project while avoiding value engineering decisions that often eliminate energy efficiency.