In commercial real estate, every building has a story. Some stories begin with new construction. Others are defined by resilience, reinvestment, and renewal.  In downtown Austin, the Hyatt Centric Congress Avenue is entering a new chapter, one made possible through TX-PACE financing.

Following a recent ownership transition, this 31-story, 246-room hotel at 721 Congress Avenue is receiving a fresh start through the refinancing of eligible qualified improvements supported by approximately $64 million in TX-PACE financing provided by Peachtree Group.

This transaction demonstrates an important truth about TX-PACE: it is not only a tool for new development. It is also a powerful solution for preserving and repositioning valuable commercial assets.  As commercial real estate markets evolve, financing tools that preserve valuable assets and support long-term performance are becoming increasingly important.

Long-Term Capital for Long-Term Assets

Jared Schlosser, Peachtree’s Head of Credit Originations and C-PACE shared, “We see meaningful long-term value in both the Hyatt Centric Congress Avenue and the Austin market. The hotel occupies one of the most recognizable locations in downtown Austin and is well-positioned to benefit from the city's continued growth and evolving hospitality demand. Utilizing the TX-PACE program allowed us to refinance eligible energy and water efficiency improvements with long-term capital that better aligns financing with the useful life of those assets. As commercial real estate owners continue to focus on both operational efficiency and capital efficiency, C-PACE is proving to be an increasingly valuable tool for strengthening capital structures and supporting long-term asset performance.”

Hotels and mixed-use properties often make substantial investments in high-performance building systems during construction. These improvements reduce operating expenses, improve resiliency, and enhance guest comfort, but they can also represent a significant capital investment.

TX-PACE allows owners to refinance eligible energy and water improvements installed within the program's two-year look-back period through a long-term assessment that remains with the property.

By aligning repayment with the useful life of the improvements, TX-PACE creates a financing structure that better matches how these assets generate value over time.

For owners and capital providers alike, TX-PACE can create financing flexibility while preserving investments in building performance.

TX-PACE Beyond New Construction

Many people first encounter TX-PACE as a financing tool for energy and water efficiency upgrades in existing commercial buildings. Over time, the program has expanded to support new construction projects as developers increasingly incorporate high-performance building systems from the outset. Today, TX-PACE also provides the flexibility to refinance eligible improvements installed during the program's two-year look-back period, creating opportunities to support recapitalizations, ownership transitions, and asset repositioning.

This evolution demonstrates the versatility of TX-PACE across the full lifecycle of a commercial property—from retrofits and renovations to new construction and refinancing previously installed qualified improvements.

The Hyatt Centric Congress Avenue transaction demonstrates how TX-PACE can help preserve high-performing buildings while providing long-term financing aligned with the useful life of energy and water improvements.

"Successful TX-PACE projects are never the result of one organization working alone. They are built through collaboration among property owners, lenders, local governments, engineers, and our transaction team, all working toward a shared vision for the property's future. The Hyatt Centric Congress Avenue transaction is an excellent example of how those partnerships can help reposition important commercial assets while supporting the long-term economic vitality of Texas communities, " said  Dr. Teresa Smith, Director of PACE Transactions, Texas PACE Authority.

A High-Performance Asset in the Heart of Austin

The property's latest chapter builds upon a site that has played a role in Texas history for more than a century. Opened in 2023, the Hyatt Centric Congress Avenue occupies one of Austin's most recognizable locations, adjacent to the historic Paramount Theatre and within walking distance of the city's business, entertainment, and convention districts. Recent market challenges affecting downtown hospitality properties have created opportunities for repositioning well-located assets for long-term success. (Chron)

The site itself carries more than 180 years of Austin history. Historians note that earlier structures on the property hosted significant events in Texas history, including the 1861 Secession Convention and portions of the drafting of the 1875 Texas Constitution. (Statesman)

Today, TX-PACE is helping write the next chapter.

Efficiency That Delivers Lasting Value

According to the ASHRAE Energy Audit prepared for the property, the building incorporates a wide range of high-efficiency systems and design features, including:

• Water-source heat pump systems with enhanced efficiency
• High-performance building envelope and roof insulation
• ENERGY STAR-rated windows
• LED lighting and controls
• High-efficiency domestic hot water systems
• Water-saving fixtures throughout the property

The projected impact is significant:

• 26% reduction in energy use intensity compared to code baseline
• More than 569,000 kWh of annual electricity savings
• Approximately 2.5 million gallons of annual water savings
• More than 1.26 million pounds of CO₂ emissions avoided annually

These improvements not only reduce resource consumption, they also support lower operating costs and improved asset performance over time.   In the hospitality sector, investments in efficient systems can help support guest comfort, operational resilience, and long-term asset value.

Demonstrating the Versatility of TX-PACE

This transaction demonstrates the versatility of TX-PACE. Originally established to help property owners finance energy and water efficiency improvements in existing buildings, the program has evolved to support new construction projects and, more recently, the refinancing of eligible improvements following ownership transitions and recapitalizations.

By providing long-term capital that aligns with the useful life of building improvements, TX-PACE helps owners preserve capital, strengthen asset performance, and create financing solutions that adapt to changing market conditions.

For lenders, owners, and communities alike, preserving high-quality commercial assets strengthens local tax bases, supports economic activity, and extends the life of efficient buildings already serving Texas communities.

As this downtown Austin landmark begins its next chapter, the project demonstrates how TX-PACE can support commercial properties throughout their lifecycle, from modernizing existing buildings to financing new construction and repositioning completed assets. Through each stage, TX-PACE continues to help property owners, lenders, and communities create lasting value across Texas.

For lenders, owners, and communities alike, preserving high-quality commercial assets strengthens local tax bases, supports economic activity, and extends the life of efficient buildings already serving Texas communities.

As this downtown Austin landmark begins its next chapter, the project demonstrates how TX-PACE can support commercial properties at every stage of their lifecycle, from new construction to recapitalization and renewal. By aligning long-term financing with investments in building performance, TX-PACE continues to help property owners, lenders, and communities create lasting value across Texas

About Texas PACE Authority

Texas PACE Authority (TPA) is a nonprofit organization and the leading administrator of TX-PACE programs serving 113 cities and counties across Texas, at the time this article was written. TPA works with local governments, property owners, and capital providers to facilitate financing for energy and water efficiency, resiliency, and distributed generation improvements in commercial properties. Through its program administration and market leadership, TPA helps ensure that high-performance building solutions are accessible, scalable, and aligned with the long-term needs of Texas communities. 

www.texaspaceauthority.org