Versatile Hotel Financing with both Senior & CPACE Origination

Peachtree Group originated a $50.4MM first mortgage and a $22.4MM Commercial Property Assessed Clean Energy (CPACE) financing for the development of the dual-brand, 263-room Home2 Suites – Tru by Hilton Hotel located in San Diego, CA. This project highlights Peachtree Group’s competitive advantage by demonstrating its ability to fully execute both senior and CPACE loans. The firm’s expertise spans multiple loan types, and having highly skilled originators in each area reinforces Peachtree Group’s versatility and comprehensive financing capabilities.

The project is located in one of the largest cities in the U.S., attracting over 30MM visitors annually, including 16.5MM overnight visitors in 2022. That year, visitor spending hit a record high of $13.6B, driven by significant increases in leisure demand, resulting in longer stays and higher expenditures. As of July 2023, hotel demand remained robust, with the city achieving the fifth-highest RevPAR among the top 25 U.S. hotel markets

The sponsor, based in San Diego, is a long-term investor and a vertically integrated real estate development and management company with investments in hospitality, retail, and multifamily sectors. The sponsor is also an experienced operator, successfully owning and managing four hotels within one block of the new development. They plan to leverage cost-saving measures through streamlined operations, which offer efficiencies by reducing personnel headcount and centralizing functions such as accounting and sales

The hotel’s location is renowned for its exceptional year-round climate, over 70 miles of coastline, emerging healthcare and biotechnology hubs, world-class hotel and convention spaces, and a wide array of dining and entertainment options. This area is a dynamic and growing life science and technology hub, boasting the third-largest concentration of life science companies in the U.S. San Diego has historically demonstrated greater resilience compared to other major West Coast hospitality markets. It is one of the top convention destinations globally, with the waterfront San Diego Convention Center located within a mile of the development. Tourism highlights include nearby beaches, Balboa Park, the San Diego Zoo, Campus at Horton Plaza, SeaWorld and the Air and Space Museum. The Research and Development District (RADD) is an 8-acre campus comprising office, lab, and retail space with a primary focus on life sciences, biotech, and research. Besides biotech, there is significant employment growth in high-tech and education sectors. The area’s largest employers include the Naval Medical Center, Sempra Energy, Aecom, Union-Tribune, MiTek and iProspec.

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Peachtree Group is a senior bridge and construction lender that can provide CPACE financing on projects currently under construction or completed within the last 36 months. The program is available for all commercial real estate asset classes.

Learn more about CPACE financing or contact Peachtree's CPACE team.

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