Baxter Hotel Group secures $73m in construction and CPACE financing
Transactions - JANUARY 22, 2024

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Baxter Hotel Group secures $73m in construction and CPACE financing

by Denise Moose

Baxter Hotel Group announced they secured $73 million in a construction loan and CPACE financing for the development of a 263-room, dual-brand Home2 Suites (130 keys) and Tru by Hilton Hotel (133 keys) in San Diego. Baxter plans to begin construction on its 16-story, dual-branded hotel this month and expects a 22-month construction timetable.

The Peachtree Group originated a $50.4 million floating-rate construction loan over a three-year term and $22.6 million of fixed-rate commercial property clean energy (CPACE) financing amortized over 25 years, which in total represented 64 percent of the total development cost.

The construction budget has CPACE-eligible items, including seismic improvements, lighting, building envelope, HVAC, plumbing and qualifying soft costs.

The hotel will be located at 1357 5th Ave. and will cater to transient and extended-stay guests, offering a new product that has been historically underserved in the market. The high-quality amenitie

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