Northbrook Marriott Recapitalizes with $6M C-PACE Loan

PACE Loan Group’s SVP Matthew McCormack arranged a $6.2 million PACE loan that was part of the $32.8 million refinancing of the Northbrook Marriott in Northbrook, Illinois.

The C-PACE loan was a retroactive payback for improvements completed from 2019 to 2022. The PACE funding entity is managed by the city of Northbrook under the Illinois Finance Authority PACE Program. PACE Loan Group handled underwriting, and origination, and will service the loan.

Those improvements range from roofing and insulation, weatherization, HVAC, and plumbing and are expected to save $1 million in annual operating expenses. Now flagged as a Renaissance brand, the Northbrook Marriott has 391 hotel rooms.

“C-PACE continues to be a great solution to provide liquidity in today’s challenging market. By taking advantage of the lookback period, we were able to increase the borrower’s returns by blending down the cost of capital,” said McCormack.

PACE Loan Group’s Matthew McCormack will be one of the expert panelists at Connect Investment & Finance 2023 on Oct. 24 at the Hyatt Regency O’Hare in Rosemont, IL. For up-to-the-minute insights on the state of the market and what’s next in the current cycle, be sure to attend. Click here to register.