Peachtree Group has successfully secured a $40 million retroactive Commercial Property Assessed Clean Energy (CPACE) loan for BLG SAN DIEGO, LLC. This financing was used to support the recently opened AC Hotel San Diego Downtown Gaslamp Quarter, which features 147 rooms. The loan is structured with a 30-year amortization and includes one year of deferred payments followed by five years of interest-only payments.
The funds from this loan also allowed BLG to significantly reduce its senior debt with California-based Preferred Bank and E. Sun Commercial Bank, Ltd., reducing their exposure in the process. According to Brad Honigfeld, founder, chairman and co-CEO of Briad Group based in New Jersey: “Our hotel’s location was performing well according to our original projections but high debt costs were straining our cash flow.”
Greg Friedman, managing principal and CEO at Peachtree Group added: “This innovative capital structure has greatly relieved immediate financial pressures for the hotel during its initial years of operation.”
