Stonehill Secures US$100M in PACE Financing
Main Photo: The Homewood Suites by Hilton, Dillon, Colorado – mid-build
Date: May 2020
Location: USA
Name: TBA
No. of Keys: 117
Owner: The build is a co-operative project from Dillon Gateway Development, Kinseth Hospitality and the Frew Development Group — and was expected to open in 2019, ahead of the 2019-20 ski season.
Funder: Hospitality lender Stonehill has secured financing for $100 million of PACE – Property Assessed Clean Energy lending for all commercial real estate asset classes. The additional, privately funded capacity already is being used to retroactively fund multiple development projects impacted financially by the on-going coronavirus pandemic.
“With the economy currently on hold and sources of financing, like the Paycheck Protection Program, drying up almost as quickly as they come online, PACE financing is a clear alternative for everyone from developers looking to restart temporarily stalled projects to owners seeking additional operating expense capital for already completed assignments,” said Mat Crosswy, principal, Stonehill. “Currently, we are fielding increased requests as developers contend with everything from mezzanine financing walking away from deals to the need for rescue capital.
“As direct lenders with the ability to close funding quickly and on schedule despite COVID-19 disruptions, we are doing deals right now for all asset classes,” Crosswy continued. “To date, we’ve provided funding for multifamily and hotel projects midway through the construction process and expect to process millions of dollars more in short order.”
Recent successful Stonehill PACE loan recipients include the Homewood Suites by Hilton in Dillon, Colo. The 117-room, extended-stay hotel received retroactive financing mid-construction. Stonehill PACE, a division of Stonehill, funded the loan directly to the senior lender for improvements that had been completed during construction. Most of the PACE funds were used to provide the project with envelope and electrical improvements.
“These are trying times for virtually everyone, and unfortunately, financing is one of the hardest hit corners of the economy,” said Anne Hill, president, Stonehill PACE. “However, we have the financial capacity and team of experts to help owners and developers navigate these turbulent waters together. We are confident that this crisis, too, shall pass, and we are here to provide a financial lifeline to tide people over during the interim.”
THPT Comment: PACE funding…a new one for us…appears this is specific to around 50% of the states in the USA?
First Seen: Hotel Management
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