Hall Group has secured substantial funding of $46 million through C-PACE financing for its upcoming Hyatt-branded hotel venture in Palm Springs. The financing, facilitated by Peachtree Group, will contribute to various crucial aspects of the project, including lighting, plumbing, wiring and seismic safety measures, according to a report by Commercial Observer.
The C-PACE loan, amounting to 34.5 percent of the hotel’s stabilized appraised value, covers nearly 29 percent of the overall development costs. This funding injection will support the creation of diverse amenities such as a Middle Eastern restaurant, two outdoor pools, a fitness center, and a wine tasting room at the Thompson Palm Springs, slated for a May opening.
A previous announcement for the hotel shows that it will incorporate a total of 168 guest rooms as well as approximately 8,000 square feet of flexible meeting and event space and over 20,000 square feet of ground-level retail and restaurant space.
According to Commercial Observer, the hotel was originally slated as a Hyatt Andaz property under developer Lawrence Rael. However, the project faced several hurdles and eventually fell into the hands of Dallas-based Hall Group.
Peachtree Group, despite navigating challenging market conditions with higher interest rates, concluded 2023 with a notable $250 million in C-PACE deals, up by 20 percent from the preceding year. This surge in activity is anticipated to persist in 2024 due to the cost-saving benefits for property owners and the appeal of semi-annual property tax payments over monthly debt service obligations.
