Dealmaker: Peachtree Group Closes $177M CPACE Loan for Renovated Las Vegas Hotel

(Image courtesy of Peachtree Group)

Peachtree Group, Atlanta, originated the largest credit transaction in its history, closing a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for the Dreamscape Cos. Rio Hotel & Casino.

The Rio, recently renovated and featuring 2,520 rooms, is now under the Destinations by Hyatt brand. The renovations were completed last year.

The CPACE loan retroactively funded the renovations, enabling the owners to pay down their senior loan. Retroactive CPACE funding allows 100% of the proceeds to be reimbursed for completed project costs. 

“This deal highlights an inflection point for CPACE, with some of the nation’s largest financial institutions consenting to its use because they see the clear benefit to the capital stack,” said Jared Schlosser, head of originations and CPACE for Peachtree. “By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders.”