PACE Program A Good Source for Hotel Funding
C-PACE for cap-ex improvements is rapidly gaining acceptance for hotel and hospitality properties, as noted recently by real estate services firm CBRE. “A building-conditions assessment on the physical health of a hotel is often an overlooked area of opportunity, helping to identify a timeline and costs to address building deficiencies… such as a deteriorating HVAC, or faulty roofing/exterior envelope.” Financing those improvements may come from traditional sources“ and other potential sources of funding including Property Assessed Clean Energy programs,” said CBRE. Bayview can help evaluate if C-PACE is a fit for you. For example. Bayview PACE arranged a refinance of $42 million for a Le Meridien Hotel at a low fixed rate and long-term, giving them significantly more time to stabilize the property and fund the project on their terms. It saved the owners a significant amount of money during a time when equity was precious and leverage even more scarce.