ATLANTA—Officials of Stonehill have revealed that 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 revealed that 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, EVP, 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, successful Stonehill PACE loan recipients:
- 315- Room citizenM Los Angeles—Stonehill successfully closed the transaction on the downtown Los Angeles hotel. The retroactive funding allowed the borrower to recoup capital spent on energy improvements for the recently built modular construction project.
- 145-Room Vista Collina Resort Napa in California—The successfully placed CPACE loan will allow ownership to pay off a mezzanine loan and cover interest and operating reserves through year-end.
- 74-Room ZLife Hotel Las Vegas—The arts district hotel received the first CPACE loan for retroactive financing in Las Vegas. Most of the PACE funds allowed ownership to complete the project.
- 105-Suites Hilton Garden Inn Longmont in Colorado—With construction nearly complete, the successfully placed CPACE loan will allow ownership to cover interest and operating reserves as the hotel ramps up.
- 174-Room Tapestry Suncoast Hotel in Anaheim, CA—The borrower approached Stonehill looking for liquidity relating to the shutdown of Disneyland and other events in Anaheim. 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, VP, 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.”
