X-Caliber, CastleGreen Lend $26M on Colorado Hotel Project
By Andrew Coen November 14, 2024 1:34 pm
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Rev Development has landed a $26.3 million debt package to build a Holiday Inn Express in Colorado, Commercial Observer has learned.
X-Caliber Holdings executed the transaction for Rev’s planned 111-room hotel that will operate under the IHG Hotel & Resorts brand in Silverthorne, Colo., under the lender’s newly launched Rural PACE-X product.
The deal includes a $20 million senior loan through XRL ALC, an affiliate of X-Caliber Rural Capital, and $6.3 million of Commercial Property Assessed Clean Energy (C-PACE) financing from CastleGreen Finance, another X-Caliber affiliate.
“This ground-up hotel construction is a prime example of how tailored financial solutions for impactful businesses can drive sustainable growth in underserved rural regions,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, said in a statement.
Proceeds from the senior debt will provide stabilization during construction for up to five years. The C-PACE loan supplies long-term debt for the project for a 25-year time horizon and the implementation of energy-efficiency features, according to X-Caliber.
Eric Carlson, managing director at X-Caliber, originated the transaction.
X-Caliber launched Rural PACE-X in late September in an effort to combine conventional senior debt with a C-PACE structure to facilitate funding for ground-up projects in rural areas. The firm said there is momentum for this structure of commercial real estate financing with a big pipeline of other projects in the works.
“By leveraging our expertise in both USDA lending and C-PACE financing, we’re not only able to support the development of the hotel, but the entire ecosystem of local businesses that will benefit from increased tourism and economic activity,” Chris Callahan, president and CEO of X-Caliber, said in a statement.
Located at the junction of Interstate 70 and State Route 9, Silverthorne is a high-elevation town 75 miles west of Downtown Denver, The Silverthorne Holiday Inn Express is slated to open sometime in 2025. Amenities planned for the hotel include a fitness center, a pool, an outdoor patio area and a restaurant.
“The innovative approach by Rural PACE-X addresses the challenges faced by rural areas, ensuring that development is not just about immediate financial gain but also about long-term environmental stewardship and a sustainable future,” Sal Tarsia, managing partner at CastleGreen Finance, said in a statement.
Officials at Rev Development did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
