California Home2 Suites Hotel receives $10.6M C-PACE loan for new construction

Minneapolis, Minnesota (December 6, 2024) – PACE Loan Group closed a $10.6 million C-PACE loan for the new construction of a Home2 Suites hotel located in Pittsburg, California, which is in the Northeast Bay Area. In addition to the PACE loan, the property received a $11 million construction loan, $3 million in mezzanine debt, and a $600k grant from the City of Pittsburgh.

Once construction is completed in 2026, the hotel will have 115 extended-stay guestrooms. The original plans included 107 hotel rooms, but the Pittsburg City Manager encouraged the sponsor to increase the number of rooms due to high regional demand. Every room has an industry-unique “working wall” that incorporates a kitchen and a flexible working/media space, making it ideal lodging for the working traveler. Other hotel amenities include a breakfast dining area, outdoor pool, fitness area, lobby workstation, guest laundry room, and outdoor patio.

The PACE proceeds will be used to cover energy efficiency and seismic resiliency upgrades tied to the construction of the property, including HVAC, electrical, lighting, building envelope, landscaping and irrigation, and seismic strengthening measures such as foundations and concrete, structural steel, and structural framing. Pittsburg has a high level of seismic activity, so these seismic strengthening measures are central to reinforcing the property’s structural integrity.

“We’re seeing C-PACE deployed for seismic projects along the West Coast more and more,” said Jacob Roth – vice president, Underwriting. “In addition to funding energy efficiency improvements, C-PACE is an accretive way to finance weather resiliency measures, which are becoming increasingly important as extreme weather events occur with more frequency and intensity.”

CleanFund, a PACE program administrator based out of Oakland, California, was the administrator for this project.

Media Contact:

Martha Nevanen

Martha@paceloangroup.com

651-492-5861

About PACE Loan Group

PACE Loan Group (PLG) is a national leader in the C-PACE marketplace, providing direct C-PACE financing to commercial property owners. PLG benefits from institutional support with capital from funds managed by AB CarVal, a subsidiary of Alliance Bernstein. The PLG team provides expertise up and down the capital stack, from origination and underwriting to loan servicing. To learn more about PLG, visit www.paceloangroup.com.