Hospitality – New Construction Capital
30YR TERM FIXED RATE C-PACE FINANCING
Loan to Development Cost
Supplement to Eb-5 funding
The Tommie Hollywood is a boutique hotel designed for the Hyatt brand and developed by the Relevant Group. As the world’s first Tommie branded property, it will feature 212 guest rooms, ground floor retail spaces and several amenities, including a rooftop pool terrace with panoramic city views.
The HASRE Solution
At the Tommie Hotel, Hollywood’s core is an earthquake-resistant foundation and framing design, with a multitude of other sustainable features that qualified the project for commercial PACE funding. Hannon Armstrong Sustainable Real Estate provided $12 million in proceeds, structured as a fully amortizing 30-year term at a fixed interest rate note. The PACE proceeds are entirely non-recourse to the Sponsor and prepayable.
PACE proceeds supplemented a capital stack that included EB-5 funding, a senior construction loan, and an equity structure typical for new development. The PACE proceeds removed interest rate and term risk for more than 20% of the project’s $60 million capital stack and offered maximum flexibility and highly competitive economics.