Dividend has originated $13.3 Million in PACE financing for energy efficiency measures previously installed on a $60 Million waterpark which completed construction in 2019 in Kissimmee, FL. Following closing, a third-party investor purchased the PACE-related Note from Dividend.
The Island H2O Live! Waterpark securing the PACE financing is owned by an institutional real estate development and investment firm with a nearly $2 billion portfolio. It fills a market gap left by the closure of a nearby facility. The waterpark is highly automated, designed to appeal to the technology generation. By tapping their wristbands, visitors can enable features like automatic social-media connectivity, pick the music heard on rides, and discounts on food and beverages. The waterpark is part of the larger $700 million Margaritaville-branded mixed-use development adjacent to the waterpark, which will include a hotel, 200,000 sf of commercial real estate, and approximately 1,700 units of multifamily housing.
The project utilized PACE financing combined with a $25 Million loan from a depository institution and guaranteed by the USDA to refinance its existing construction loan debt. This reduced its cost of debt from 9.20% to 7.20%, increased the park’s ability to meet its debt service obligations and provided additional working capital for future job creation in a post-COVID-19 environment.
PACE-eligible measures on the waterpark include structural reinforcements and weatherproofing, lights, controls, air flow, high-efficiency pumps, industrial kitchen appliances, cooling and heating, according to Peter Grabell, Senior Vice President of PACE for Dividend. From an impact perspective, the waterpark has created over 340 full- and part-time local jobs local in addition to dozens of construction jobs during the 36-month development process.
Dividend Finance is the exclusive Program Administrator for one of four California PACE programs and is a qualified capital provider for PACE programs nationwide.