North Bridge has successfully closed a $50-million C-PACE refinancing deal for the Residence Inn Berkeley, a 331-key full-service hotel located in Berkeley. This marks the largest C-PACE transaction in the hospitality industry for 2023 and is currently ranked as the fourth largest C-PACE hotel financing to date.
The property, which opened its doors in 2021 and boasts LEED Gold certification, was developed by Pyramid Global Hospitality’s founders. Lantern Real Estate Advisors facilitated the financing while Prime Finance provided a mezzanine loan alongside a senior loan from a debt fund.
In light of current lending conditions, North Bridge highlights how utilizing C-PACE can be an advantageous fixed-rate financial solution that helps borrowers reduce their interest burden and complete their capital stack. The successful completion of this transaction serves as an example of how borrowers can utilize retroactive use of C-PACE for refinancing purposes.
Situated just one block away from University of California Berkeley campus, Residence Inn Berkeley is reportedly considered to be Berkeley’s first new ground-up hotel project in over four decades.
