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PACE Loan Group Provides $18M to Restart Cincinnati Hotel Project
PACE Loan Group (PLG) closed a $17.7 million PACE loan to complete a 136-key Hyatt House-branded hotel and attached medical rehab annex in West Chester, Ohio, located 22 miles north of Cincinnati. The PACE proceeds will be used to refinance existing debt and construction of the property, which also secured $9 million in financing from Eclipse Bank. With a total capital stack of $38.2 million, the stalled project is on track to open by early Q4 of 2024.
The project will have traditional Hyatt-House-branded rooms, as well as Hyatt-approved special branding and design for 23 initial wellness rooms and 40 rooms by 2026. Because Ohio’s C-PACE authority only authorizes C-PACE financing in a special improvement district (SID), the City of Westchester created a SID specifically for this project to ensure completion.
“This was a creative but very impactful way to deploy C-PACE and will enable the project team to finalize and open a cutting-edge concept that blends hospitality and healthcare,” said Rafi Golberstein, CEO and founder of PLG. Parag Vipani, vice president of originations, arranged the financing package with PLG’s internal underwriting team led by Jacob Roth, vice president of underwriting.
