PACE Program A Good Source for Hotel Funding
C-PACE for
cap-ex improvements is rapidly gaining acceptance for hotel and hospitality properties, as noted recently by
real estate services firm CBRE. “A building-conditions assessment on the
physical health of a hotel is often an overlooked area of opportunity, helping
to identify a timeline and costs to address building deficiencies… such as a
deteriorating HVAC, or faulty roofing/exterior envelope.” Financing those
improvements may come from traditional sources“ and other potential sources of
funding including Property Assessed Clean Energy programs,” said CBRE.
Bayview can help evaluate if C-PACE is a fit for you. For example. Bayview PACE
arranged a refinance of $42 million for a Le Meridien Hotel at a low fixed rate
and long-term, giving them significantly more time to stabilize the property
and fund the project on their terms. It saved the owners a significant amount
of money during a time when equity was precious and leverage even more scarce.