ATLANTA — Officials of Stonehill today announced the company’s PACE Division closed on nine Commercial Property Assessed Clean Energy (CPACE) loans totaling $100 million during the fourth quarter of 2020. The company also announced it is on track to close an additional $80 million in CPACE financing over the coming 90 days.
“As the hospitality industry continues to be battered by the economic fallout from the on-going COVID-19 pandemic, hotel owners continue to need liquidity urgently to prevent losing their assets,” said Brent LeBlanc, executive vice president, Stonehill. “Since the early stages of the pandemic back in April, Stonehill has provided CPACE financing to a variety of hoteliers whose projects otherwise would have been either stalled or canceled. With far lower interest rates than traditional loans, we believe this type of financing will prove invaluable as hoteliers battle through what hopefully are the closing stages of the coronavirus. Stonehill prides itself on working with owners to find financial solutions that work for all parties involved.”
Examples of recent Stonehill PACE loan recipients include:
- Stonehill closed the second-largest C-PACE transaction ever completed on the 315-room Citizen M Los Angeles. The retroactive funding allowed the borrower to recoup capital spent on energy improvements for the recently built modular construction project.
- The successfully placed CPACE loan will allow ownership of the 145-room Vista Collina Resort Napa, California, to pay off a mezzanine loan and cover interest and operating reserves though year-end.
- The 74-room ZLife Hotel Las Vegas received the first CPACE loan for retroactive financing in Las Vegas. Most of the PACE funds allowed ownership to complete the project, which is located in the arts district.
- With construction nearly complete on the 105-suite Hilton Garden Inn Longmont, Colorado, the successfully placed CPACE loan will allow ownership to cover interest and operating reserves as the hotel ramps up.
- The borrower for the 174-room Tapestry Suncoast Hotel approached Stonehill looking for liquidity relating to the shutdown of Disneyland and other events in Anaheim, California. The CPACE loan gave them enough flexibility to get through that shutdown and ramp up cash flow, with proceeds used for interest, operating, and tax/insurance reserves.
“CPACE funding has proven to be an invaluable lifeline for struggling hoteliers,” said Jared Schlosser, vice president, Stonehill. “Stonehill PACE’s team members have completed more than 40 deals totaling $225 million collectively. This experience allows us to work quickly and strategically with owners to procure funds that have become more necessary now than ever as the hospitality industry continues to work through the pandemic.”