New Joshua Tree Hotel receives $11.2 million in C-PACE financing
Construction starts this month for 65-room boutique hotel adjacent to Joshua Tree National Park
Minneapolis, Minnesota (Oct.17, 2023) – Reset Hotel, a new hotel coming to Twentynine Palms, a Palm Springs exurb adjacent to the North Entrance of Joshua Tree National Park, has started construction with $11.2 million in C-PACE financing from PACE Loan Group. Qualifying C-PACE improvements include plumbing, HVAC, electrical, lighting, building envelope, and seismic measures. The 30-year loan is combined with a $7.5 million first mortgage.
The independent, design-forward boutique hotel, located at 7000 Split Rock Avenue, will use modular construction to reduce the construction time by nearly half and is expected to open in early 2025. The hotel, with sprawling views of Joshua Tree National Park, will include 65 guestrooms with private outdoor patios, an outdoor swimming pool overlooking the park, a gift shop, a poolside cocktail bar serving small bites, a conference room, and 65 surface parking spots. Built on 5.85 acres of 11.1 acres of land acquired in 2021, this property is the only hotel in the area that is removed from the highway, completely adjacent to the park, and offers unobstructed views of the park. The developers also own 170 acres of the surrounding land up to the park boundary which they are currently leaving undeveloped to maintain views and privacy for guests.
Once complete, the hotel will be managed by Sightline Hospitality, a manager of independent, soft-branded, and unique-branded hotels that was founded in 2019 and based in San Francisco.
“Given the lack of high-quality, experiential lodging options near Joshua Tree National Park, we believe the C-PACE investment will support the sponsor’s vision for a unique new amenity to the area,” said Rafi Golberstein, CEO of PACE Loan Group. Golberstein also noted that annual visitation to the National Park has been on the rise, with more than 3 million reported visitors in 2021 and 2022. Jacob Roth, vice president-PLG, provided underwriting expertise on the loan.
Lodging options near Joshua Tree consist primarily of lower quality, limited-service properties with few amenities and numerous alternative lodging facilities such as air streams, trailers, and Airbnb. “Given the location near Joshua Tree, our team knew that having a C-PACE component both demonstrates our commitment to the environment and strong financial stewardship,” said Adam Wininger, one of the developers of the project. “PACE Loan Group was a pleasure to work with, providing a clear and uncomplicated path to closing.”
Aside from Wininger, the project is being led by HP Investors, a California centric owner and operator, and Ben Uyeda, an internationally recognized architect and expert in the field of ecologically conscious housing.
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.