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 construction loan and CPACE financing were originated on behalf of Baxter Hotel Group, a locally based company. Construction is set to begin this month with an expected timeline of 22 months.
The Peachtree Group team successfully secured a $50.4-million floating-rate construction loan over three years, along with $22.6 million in fixed-rate commercial property clean energy (C-PACE) financing amortized over 25 years, representing 64% of the total development cost.
According to Jared Schlosser, SVP and head of hotel origination at Peachtree Group, “We were able to create an innovative capital stack by including CPACE funding during challenging market conditions.” This allowed for ample capital for construction while also saving the sponsor significant interest rate spread.
