New Construction of Home2 Suites Hotel
$4.3 million for energy, mechanical and water systems
The four-story, 67,000-square-foot new Home2 Suites by Hilton, is a development of Lathrop, CA-based RAAD Hospitality Group. Expected to be completed by mid-2019, the Home2 Suites will accommodate business, leisure and family travelers and will feature a swimming pool and patio, Wi-Fi, in-room kitchens, deluxe conference facilities and other amenities.
The client needed to fill a $4.3 million construction financing gap and wanted to stretch their equity dollars towards acquisition and development of other hotels.
Live Oak Bank recognized C-PACE as an ideal solution to fill the $4.3 million construction financing gap and lower the weighted average cost of capital for their client, RAAD Hospitality Group.
CleanFund used their deep experience with banks and track record in handling C-PACE start-to-finish to improve the bottom line for the client while closing the financing gap and lowering their weighted average cost of capital.
“We were pleased with the way our senior lender, Live Oak Bank, and CleanFund worked together to provide the most accretive financing solution for our new hotel project. We’ve been operating for over 20 years and are excited to have C-PACE as a new financing tool in the capital stack, enabling us to stretch our equity dollars towards acquisition and development of other hotels.”