California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
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.
- ◦Financing


