Officials of Peachtree Group today announced that the company originated $73 million in a construction loan and CPACE financing for the development of a 263-room dual-brand Home2 Suites (130-key) and Tru by Hilton Hotel (133-key) in San Diego, Calif., on behalf of Baxter Hotel Group, a San Diego‐based, vertically integrated real estate development and management company. Baxter plans to begin construction on its 16-story, dual-branded hotel this month and expects a 22-month construction timetable.
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Officials of Peachtree Group today announced that the company originated $73 million in a construction loan and CPACE financing for the development of a 263-room dual-brand Home2 Suites (130-key) and Tru by Hilton Hotel (133-key) (rendering pictured) in San Diego, Calif., on behalf of Baxter Hotel Group, a San Diego‐based, vertically integrated real estate development and management company. (Photo: Business Wire)
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 (CPACE) 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 senior vice president, head of hotel origination and CPACE.
The construction budget has CPACE-eligible items, including seismic improvements, lighting, building envelope, HVAC, plumbing and qualifying soft costs.
The hotel will be located at 1357 5th Avenue and will cater to transient and extended-stay guests, offering a new product that has been historically underserved in the market. The high-quality amenities proposed are not typically seen in limited-service hotels, like sustainable designs to achieve Leadership in Energy and Environmental Design (LEED) certification, a ground-floor restaurant and a rooftop pool fully equipped with a restaurant and bar offering panoramic views of Downtown San Diego.
About Peachtree Group
Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures. The company has executed hundreds of investments since its inception, focusing on real estate acquisition, development and lending valued at almost $9.3 billion in total market capitalization. Today, Peachtree manages over $2.5 billion in equity, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.
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Contacts
Charles Talbert
678-823-7683
ctalbert@peachtreegroup.com
