Dealmaker: Peachtree Group Provides $40M in CPACE Financing for San Diego Hotel

(Image courtesy of Peachtree Group)

Peachtree Group, Atlanta, originated a $40 million retroactive Commercial Property Assessed Clean Energy loan to BLG San Diego for its new AC Hotel San Diego Downtown Gaslamp Quarter.

The CPACE financing was amortized over 30 years and required no payment for a year, followed by five years of interest-only payments.

The proceeds also allowed BLG to pay down its senior loan with California-based Preferred Bank and E.Sun Commercial Bank Ltd. to under $20 million, Peachtree Group said.

“This innovative capital structure significantly alleviated the immediate financial pressures, enabling the hotel to establish a solid cash flow foundation during its initial years of operation,” said Greg Friedman, Peachtree Group’s managing principal and CEO.

The new hotel features 147 rooms and is in San Diego’s popular downtown Gaslamp Quarter, known for its restaurants and shopping.