COLLEGE PARK, Md. — The Maryland Clean Energy Center (MCEC) is proud to announce the closing of a $43 million Maryland Property Assessed Clean Energy (MDPACE) transaction, supporting the development of the Marriott Downtown Frederick at Carroll Creek in downtown Frederick. The financing represents the largest Commercial PACE (C-PACE) transaction in Maryland to date and the first transaction closed since MCEC assumed direct responsibility as program administrator.
The 2.2-acre project, located at 20 South Carroll Street in downtown Frederick, is being developed by Plamondon Hospitality Partners. The new full-service Marriott will offer 204 guest rooms and more than 20,000 square feet of premier conference and event space, including a signature rooftop terrace and flexible indoor-outdoor venues. The hotel will also have two restaurants (one creekside and one rooftop bar and restaurant), a lobby bar and a grab and go coffee shop and market.
The 30-year, fixed-rate, financing was provided by Nuveen Green Capital, a leading provider of C-PACE financing. By incorporating MDPACE into the project’s capital stack, the development team accessed long-term private capital for permanently affixed energy efficiency and water conservation improvements – capital that would otherwise have required higher-cost mezzanine debt or sponsor equity. The structure preserves senior debt capacity while financing improvements that materially reduce long-term operating costs and emissions over the life of the building. The permanently affixed improvements financed through MDPACE include:
- High-Performance Building Envelope: Advanced insulation, roofing, and windows to minimize thermal loss
- HVAC Systems: Upgraded, high-efficiency heating and cooling units
- LED Lighting: Full interior LED installation to reduce electricity demand
- Water Efficiency: Advanced domestic hot water systems and low-flow fixtures
The improvements are projected to save more than 193,000 kWh of electricity and 1.4 million gallons of water annually, reduce greenhouse gas emissions by 176 metric tons of CO₂e per year, and deliver more than $2 million in life-cycle cost savings.
“We are thrilled to leverage the MDPACE program to bring a world-class, energy-efficient Marriott to downtown Frederick,” said Peter Plamondon, Jr., Co-President of Plamondon Companies. “This financing was the piece that allowed us to bridge the gap between ambitious sustainability goals and financial pragmatism. It’s a win for our project, a win for the environment, and a win for the Frederick community.”
Ryan Doyle, Senior Director of Originations, Nuveen Green Capital, added, “It was a pleasure to partner with MDPACE and Plamondon Hospitality Partners to capitalize this exciting new hotel, the Marriott Downtown Frederick at Carroll Creek. This transaction demonstrates the power of C-PACE financing to fill a critical gap in the capital stack — delivering $43 million in efficiently priced long-term private capital that preserves senior debt capacity and replaces higher-cost mezzanine debt or equity. This financing marks the largest C-PACE transaction in Maryland history, and we are proud to have structured a capital solution that supports a signature downtown development while delivering meaningful long-term savings for the sponsor. It reflects Nuveen Green Capital’s commitment to making C-PACE an increasingly accessible and compelling financing tool for Maryland developers and property owners.”
While the financing provides clear advantages for the developers, local leaders emphasize that the project serves as a cornerstone for the broader environmental and economic goals of the region.
“The partnership between MCEC and Frederick County Government provides meaningful benefits to our community by advancing projects that reduce energy consumption and conserve water,” said Frederick County Executive Jessica Fitzwater. “Plamondon Hospitality Partners is demonstrating real business leadership through this investment, reducing long‑term operating costs while contributing to a more sustainable and resilient Frederick County.”
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