X-Caliber, CastleGreen Lend $36M For Hotel Development Near FDR Library
By Andrew Coen May 10, 2022 9:00 am
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A joint venture between T-Rex Capital Group and Shaner Hotel Group has landed a $36 million financing package to build a planned Marriott-branded hotel property in New York’s Hudson Valley, near the Franklin D. Roosevelt Presidential Library and Museum, Commercial Observer has learned.
X-Caliber Rural Capital (XRC) , an affiliate of X-Caliber Capital and CastleGreen Finance, supplied the debt package for The Inn at Bellefield in Hyde Park, N.Y. XRC provided a $25 million fixed-rate loan through a U.S. Department of Agriculture Business and Industry guaranteed loan program while CastleGreen contributed $11 million of Commercial Property Assessed Clean Energy (C-PACE) financing.
Mike Spachman, senior vice president of CastleGreen, originated the C-PACE transaction.
The $25 million loan will be used as construction-to-permanent financing for T-Rex and Shaneer to build a 137-room, five-story hotel under the Marriott franchise, which is slated for completion in September 2023.
The $11 million C-PACE financing will support energy-efficiency improvements at the property for its roofing, walls and windows. It will also enable LED lighting, HVAC and low-flow plumbing. The project is expected to save 725,000 gallons of water per year.
Located at 15 West Dorsey Lane, The Inn at Bellefield property is situated close to the FDR Library and is across the street from the Culinary Institute of America.
“This is a testament to the flexibility of the C-PACE structure and how it benefits borrowers with
long-term, low-cost financing, all the while supporting sustainability and a cleaner environment,” Sal Tarsia, managing partner at CastleGreen, said in a statement.
XRC and CastleGreen also teamed up on a similar transaction to lend $32 million to finance Nationwide Healthcare Services’ Milford Wellness Village, a multitenant medical space in Milford, Del. The deal involved XRC supplying $25 million through a USDA Business & Industry guaranteed goan that will pay off a past construction loan and be utilized for future tenant improvements with CastleGreen providing $7.2 million of C-PACE financing for energy-efficiency upgrades.
Scott Crimmins, senior vice president at CastleGreen, originated the C-PACE transaction.
“The combination of USDA Business and Industry guaranteed loan program plus Commercial PACE financing creates many construction and permanent jobs and positions the areas for a wider economic development plan,” Jordan Blanchard, co-founder of X-Caliber Capital and executive manager of XRC, said in a statement. “We’re proud to be part of two such impactful projects.”
Officials for T-Rex Capital Group, Shaner Hotel Group and Nationwide Healthcare Services did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
