BEAUMONT, Texas—Peachtree Group, alongside Lone Star PACE, announced the closing of a $11 million Commercial Property Assessed Clean Energy (C-PACE) transaction for the redevelopment of the MCM Elegante Hotel.
The project will transform the existing hotel into a 287-key, dual-branded Courtyard and Element Hotel by Marriott. The Courtyard portion will include 135 rooms, while the Element Hotel will offer 152 rooms designed for extended-stay guests. MCM Elegante will remain open during the renovation, which is expected to take approximately 18 months to complete.
Robert Loeb, assistant vice president of originations at Peachtree Group, said, “C-PACE plays a critical role in helping owners close the gap on projects that otherwise would not pencil in today’s environment. We’re seeing more situations where strong assets are held back by capital constraints, not fundamentals. By offering a lower overall cost of capital option, C-PACE allows sponsors to move forward with renovations that might otherwise be delayed or shelved.”
Lee McCormick, president of Lone Star PACE, said, “C-PACE continues to play a critical role in repositioning and revitalizing hospitality assets across Texas. By incorporating long-term, low-cost financing into the capital stack, developers can meaningfully reduce their weighted average cost of capital while investing in high-performance building systems that drive operational savings and long-term value.”
