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Peachtree Group Provides CPACE Loan for Hotel in San Diego’s Gaslamp Quarter
Peachtree Group originated a $40-million retroactive Commercial Property Assessed Clean Energy (CPACE) loan to BLG SAN DIEGO, LLC for its recently opened 147-key AC Hotel San Diego Downtown Gaslamp Quarter. The financing was amortized over 30 years and required no payment for a year, followed by five years of interest-only payments.
Additionally, the proceeds allowed BLG to pay down its senior loan with California-based Preferred Bank and E. Sun Commercial Bank, Ltd. to under $20 million, thereby mitigating the banks’ exposure. “Our hotel was benefiting from its location and performing to its original underwriting, but the debt costs were straining cash flows,” said Brad Honigfeld, founder, chairman and co-CEO of the New Jersey-based Briad Group.
“This innovative capital structure significantly alleviated the immediate financial pressures, enabling the hotel to establish a solid cash flow foundation during its initial years of operation,” said Greg Friedman, Peachtree Group’s managing principal and CEO.
- ◦Financing
