$176.5M CPACE Financing Reshapes the Rio Hotel & Casino Redevelopment
Overview
When Dreamscape Companies unveiled plans to renovate the Rio Hotel & Casino in Las Vegas, Peachtree Group delivered a $176.5 million retroactive Commercial Property Assessed Clean Energy (C-PACE) loan, one of the largest of its kind.
This landmark financing reimbursed completed renovations and redefined how C-PACE can support large-scale hotel projects.
The Challenge
High interest rates and tightening credit created a challenging refinancing landscape for large hospitality assets. Conventional lenders prioritized conservative debt yields, leaving a gap for projects that required flexibility and speed.
The Solution
Peachtree Group’s C-PACE structure offered a long-term, fixed-rate solution at scale. By securing repayment through a property tax assessment, the financing provided stability within the capital stack while improving cash flow for the sponsor.
“It turned a lot of heads and opened new opportunities for how CPACE can be applied,” said Daniel Siegel. “It’s another tool we can use to help borrowers achieve their business plans.”
Results
- Closed in under 60 days, enabling rapid reimbursement of renovation costs
- Established one of the largest CPACE loans ever completed
- Strengthened Peachtree’s position as a national leader in innovative hospitality financing
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