Peachtree Provides $73M Financing on Dual-Branded San Diego Hotel
Peachtree Group originated $73 million in a construction loan and CPACE financing for the development of a 263-key dual-brand Home2 Suites and Tru by Hilton Hotel in San Diego, on behalf of locally based Baxter Hotel Group. Baxter plans to begin construction on its 16-story, dual-branded hotel this month and expects a 22-month construction timetable.
The Peachtree Group team originated a $50.4-million floating-rate construction loan over a three-year term and $22.6 million of fixed-rate commercial property clean energy (C-PACE) financing amortized over 25 years, which in total represented 64% of the total development cost.
“We were able to execute an innovative capital stack with the addition of CPACE in an otherwise difficult financing market that provided ample capital for the construction to begin while saving the sponsor 200 basis points in interest rate spread,” said Jared Schlosser, Peachtree’s SVP, head of hotel origination and C-PACE.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).