Peachtree Group secures $73 million in financing for the development of a 263-key dual-brand Home2 Suites and Tru by Hilton Hotel in San Diego. The loan, originated by Peachtree Group on behalf of Baxter Hotel Group, includes a $50.4-million floating-rate construction loan over three years and $22.6 million of fixed-rate commercial property clean energy (C-PACE) financing amortized over 25 years.
According to Jared Schlosser, SVP and head of hotel origination at Peachtree Group, the team was able to secure an innovative capital stack that provided ample funding for construction while saving the sponsor 200 basis points in interest rate spread. This was achieved through the addition of CPACE financing despite challenging market conditions.
Construction on Baxter’s 16-story dual-branded hotel is set to begin this month with an expected completion timeline of 22 months.
