X-Caliber, CastleGreen Lend $285M for Missouri Resort Project

Tegethoff Development has secured $285 million of construction financing to build a resort and entertainment project in Missouri’s Lake of the Ozarks region, Commercial Observer can first report.

X-Caliber Holdings spearheaded the debt package for Tegethoff’s planned $495 million The Oasis at Lakeport development in Osage Beach, Mo., through its Rural PACE-X platform launched last year.

The deal includes a $220 million senior loan from XRL ALC, an affiliate of X-Caliber Rural Capital, and $65 million of Commercial Property Assessed Clean Energy (C-PACE) financing from CastleGreen Finance, also an X-Caliber affiliate. 

“This is the largest Marriott construction project going in the country, so we like the brand quite a bit, and the location is amazing as it’s a destination for many visitors and tourists ,” Jordan Blanchard, co-founder of X-Caliber Rural Capital, told CO. “One of the great aspects of X-Caliber Capital is we have many lending firms under one roof, including XRL who is the senior lender and CastleGreen who is the PACE lender, so the ability to work together is unique in the industry.”

In addition to the $285 million financing package from X-Caliber, Tegethoff Development also inked $110 million of tax increment financing bonds issued by Stifel Financial, which underscored the a solid public-private partnership foundation for the project, according to Sal Tarsia, managing partner at CastleGreen Finance.  

Tarsia said strong sponsorship coupled with the Marriott brand was a big attraction to deciding to lend on the project. Tarsia added that Missouri Gov. Mike Kehoe and the City of Osage Beach have also been supportive with getting the development off the ground by greenlighting the expansion of an electrical grid.

“The governor of Missouri was very involved in this deal and was very generous with his time and meeting with us,” Tarsia told CO. “When we went on the site inspection and met with all of the participants on our side, we were astounded at the amount of wealth that exists in this area and we’re really able to understand the demand drivers of why this project was needed here.”

Tarsia said the property should attract visitors from nearby drivable cities of St Louis Kansas City in Missouri and Tulsa Oklahoma City in Oklahoma. He added that Ambridge Hospitality, the hotel manager for the project, has already received inquiries from five large companies throughout Missouri looking to pre-book conferences, including one with a five-year commitment.

The loan, which was structured by an X-Caliber team of Gregg Delany, Ken Lorman and Gabe Mashaal, is the largest to date for the company’s Rural PACE-X product. It also marks the largest C-PACE deal in Missouri. 

“The innovative financing structure helped make it possible to deliver a premier family resort,” Chris Callahan, president and CEO of X-Caliber, said in a statement. 

The Oasis at Lakeport development project will feature a 402-room Marriott hotel, conference center, indoor water park and amusement park.  The amusement park portion of the project is slated for completion in spring 2026 with the Marriott hotel and water park scheduled to open in late 2027. An energy-efficient design is projected to yield around $11 million of cost savings over the project’s life span, according to X-Caliber.

St. Louis-based Tegethoff Development estimates that Oasis at Lakeport will draw 600,000 yearly visitors. 

“This transformational project brings so many benefits to the local economy including well-paying jobs, tax revenues, and vibrant cultural entertainment,” Jeff Tegethoff, founder and CEO of Tegethoff Development, said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com.