IRVINGTON, NY – (COMMERCIAL THREAD) –X-Caliber financing (X-Caliber), a national direct commercial real estate lender, and CastleGreenFinance (CastleGreen), an affiliate that provides capital focused on the financing of clean energy valued by commercial property (C-PACE), is pleased to announce the closing of a joint $ 94 million transaction in the part of a multi-million dollar renovation to reopen Long Beach, California Landmark Breakers Hotel & Spa. The financing consisted of a renovation loan and C-PACE funding, earning the distinction of being the largest single asset funding under the program in the state of California.
The X-Caliber / CastleGreen team executed the one-stop-shop transaction providing $ 48.5 million in first mortgage, renovation financing and $ 45.5 million in C-PACE financing through the Open PACE program of the California Statewide Communities Development Authority (CSCDA). The Open PACE program provides homeowners with funds to finance improvements that include energy efficiency, renewables, water conservation, and seismic upgrades while leveraging contractor networks in California communities. Unique PACE financing is administered only by lenders approved by C-PACE and allows borrowers to repay it over time through a voluntary tax assessment that provides a longer term, lower cost financing option coupled with the ability to transfer the refund to the next owner.
The $ 94 million funding is part of a $ 167 million project led by Pacific Companies6, a Long Beach, Calif., partnership led by John Molina, who purchased the Long Beach Breakers Hotel & Spa in 2017. The company is focused on projects that bring positive economic and social progress to their local communities. The property is slated to reopen as a boutique hotel in the first quarter of 2023 and will include 185 rooms, a rooftop pool, several restaurants, and a renovation of the iconic Sky Room.
Chris Callahan, President and CEO of X-Caliber, said he was extremely happy to work with all parties involved in this notable transaction.
“This was our first joint transaction with our affiliate, CastleGreen, and we were excited to combine our unique capabilities through the C-PACE program to help Pacific6 realize its vision of bringing this hotel back to life while providing more 220 jobs and economic stimulus in bustling downtown Long Beach. X-Caliber is committed to providing our customers with the best possible solutions for their business goals and we immediately fell in love with the Breakers Hotel vision. Our team of experts understood the needs of our friends at Pacific6, and we were delighted to provide a one-stop financing solution for this transformational and impactful initiative.
The financing will not only provide borrowers with longer term and lower cost financing, but it will significantly reduce greenhouse gas emissions at the rate of approximately 247.2 metric tonnes of carbon dioxide per year. The improvements required by C-PACE funding for this project are expected to reduce annual greenhouse gas emissions by eliminating the equivalent of 273,800 pounds of burnt coal and avoiding 84.3 tonnes of waste that will be recycled instead of waste. ‘be landfilled. These are two of nearly two dozen examples of CO2 reduction that are a direct result of C-PACE funding for the Breakers Hotel and Spa.
“The CastleGreen team were very proud to work with their partner at X-Caliber to help the Pacific6 team bring this historic asset back to its early 20’s greatness.e century, ”said Sal Tarsia, Managing Partner of CastleGreen. “It was a pleasure to bring all the elements available in the CSCDA Open PACE program to the benefit of Pacific6, a company truly committed to the restoration and positive environmental impact of its community.”
“Bringing the Breakers Hotel back to its former purpose and glory has been our intention from day one,” said John Molina, Founder of Pacific6. “Long Beach needs this hotel and we are proud to be working with CastleGreen and X-Caliber to make this dream come true as we transform the downtown area of our city.”
James Hamill, CEO of the California Statewide Communities Development Authority, says the project funding is an example of how the unique C-PACE program and strong teamwork can make a real impact.
“The Breakers C-PACE funding illustrates how CSCDA brings effective funding mechanisms to its member cities, such as Long Beach, to create a sustainable present and future,” Hamill said. “We congratulate the CastleGreen team for their efforts here and look forward to their continued positive impact in the C-PACE space in California.”
Matt Raptosh, Managing Director of Berkadia, arranged the financing for the transaction. “This deal could not have been achieved without the creativity, commitment and integrity of the X-Caliber / CastleGreen team. As a result of their efforts, the city of Long Beach will benefit from the return of this historic hotel as a magnificent and defining feature of its coastal skyline. X-Caliber and CastleGreen were able to leverage their expertise in structured finance and C-PACE loans to create an exceptional solution for a highly complex transaction, while providing top notch service to the client, Berkadia, and all parties. stakeholders from the bid to closure. We are delighted to be working with them again in the very near future.
One of Long Beach’s oldest buildings, the 14-story Breakers Hotel was built in 1926 and has a star-studded history of welcoming guests like John Wayne, Clark Gable, Cary Grant, and Elizabeth Taylor. It is within walking distance of many of Long Beach’s landmarks, including the Convention and Entertainment Center, Restaurant District, Aquarium, and Long Beach Cruise Terminal. The hotel closed in 1988 and has recently operated as an auxiliary residence. The new Breakers Hotel and Spa is expected to reopen in the first quarter of 2023.
About X-Caliber –www.x-calibercap.com
X-Caliber is a nationally recognized direct lender that has built long-term relationships with our clients for 30 years. The X-Caliber team offers extensive experience and knowledge of the financial markets unmatched by its competitors. Constituents have provided more than $ 80 billion in capital to the commercial real estate space over the past two decades.
About CastleGreen Finance –www.castlegreenfinance.com
CastleGreen Finance is a private equity source focused on PACE (Property Assessed Clean Energy) commercial finance. CastleGreen brings extensive experience in commercial real estate across a wide range of financial disciplines. The CastleGreen team’s real estate experience, combined with their core C-PACE capabilities, provides their clients with the knowledge and resources to create a superior capital stack that meets all of their needs and helps unlock the potential of their commercial real estate. We understand that the most important part of any real estate transaction comes with the capital at closing. Our team is focused on the details of every transaction to make sure we can get our customers to the finish line.
About Pacific6 – www.pacificsix.com
Pacific6 is a Long Beach, California-based investment and development partnership with capital of over $ 100 million. The six founders of the partnership are committed to identifying, investing and becoming personally involved in inspiring initiatives that have positive economic and social impacts for the people and communities in which they find themselves. The current portfolio of projects includes the award-winning Long Beach Post and the historic Breakers Hotel.