Peachtree Group Provides $40M C-PACE Loan for San Diego Marriott-Branded Hotel

Briad Group Secures $40 Million C-PACE Financing for San Diego Marriott Hotel Refinance

Briad Group Secures $40 Million Retroactive Financing for San Diego Marriott Hotel

In a strategic move to address challenges posed by rising interest rates, New Jersey-based Briad Group has successfully secured $40 million in retroactive Commercial Property Assessed Clean Energy (C-PACE) financing for its newly opened Marriott hotel in San Diego. The financing, provided by Peachtree Group, will be used to refinance the developer’s 147-room AC Hotel San Diego Downtown Gaslamp Quarter, which opened its doors in early 2023 on the site of a former TGI Fridays owned by Briad.

Jared Schlosser, executive vice president of hotel lending & C-PACE at Peachtree Group, highlighted the unique advantages of retroactive C-PACE financing for hospitality property owners. The loan will reimburse Briad Group for energy-efficiency and seismic upgrades made during the conversion of the property from a TGI Fridays site into a hotel, providing much-needed breathing room for the project.

Brad Honigfeld, founder, chairman, and co-CEO of Briad Group, emphasized the importance of the loan structure in light of current interest rate challenges. With the hotel facing budget overruns due to complications from the COVID-19 pandemic, the financing will help alleviate financial strain by deferring payments for the first 18 months and providing liquidity during a critical period.

Peachtree Group, a key player in the C-PACE market, has closed $800 million in originations over the past decade, with a significant increase in volume last year. The growing popularity of C-PACE financing in the commercial real estate industry underscores its effectiveness as an alternative financing avenue for properties facing refinancing challenges in the current market environment.

The AC Hotel in Downtown San Diego is just one example of how retroactive C-PACE loans can provide much-needed relief for hotel properties struggling with rising debt costs. As the industry faces a wave of hotel-securitized loans due for repayment by the end of 2024, innovative financing solutions like C-PACE are becoming increasingly essential for property owners looking to navigate uncertain market conditions.

Overall, the successful financing deal represents a significant milestone for Briad Group and underscores the importance of proactive financial strategies in the face of evolving market dynamics. With the support of Peachtree Group and the benefits of C-PACE financing, the Marriott hotel in San Diego is well-positioned for continued success in the competitive hospitality market.

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