GreenRock Capital and Petros PACE Finance have announced the close of $62.6 million in Commercial Property Assessed Clean Energy (C-PACE) financing for the construction of the Appellation Healdsburg hotel project located at 101 Dovetail in Healdsburg, Sonoma County. CCS Healdsburg Hotel, LLC, a partnership between Comstock Development Company, Wine Country Holdings, an affiliate of Appellation, and HVH Investment, will develop the property for the new culinary-forward luxury hotel brand and operator, Appellation.
"C-PACE financing is integral to structuring a robust capital stack, offering our clients a path to not only secure the viability of new development projects but also to advance them with a strong commitment to sustainability," said Chris Robbins, managing principal of GreenRock Capital.
"This form of financing is fostering job growth while supporting environmentally conscious construction with a commitment to long-term economic and ecological benefits."
Anticipated to open in 2025, the 108-key luxury boutique hotel Appellation Healdsburg will deliver the Wine Country lifestyle with an array of amenities and facilities, including a 160-seat Charlie Palmer signature restaurant and bar, rooftop bar, fitness club, spa and two pools, and 15,500-square-feet of meeting and event space. The property will hold a unique market position as the only four-and-a-half-star-resort that provides the amenities and experiences that the modern-day traveller seeks, while intimately immersing guests into the local community.
"The Healdsburg hotel project is a prime example of a sophisticated developer using C-PACE to supplement their complex capital stack with financing that is both innovative and sustainable," said Mansoor Ghori, CEO and founder of Petros PACE Finance.
"Once considered alternative or niche financing, C-PACE is now poised to lead the commercial real estate industry forward as a mainstream solution for funding across all property types and development needs."
The project is being developed as part of the broader North Village mixed-use master plan, strategically located two miles north of downtown Healdsburg. The full master site encompasses: a housing project consisting of 27 Category C townhomes; a mixed-use development by Burbank Housing, a leading non-profit housing provider in Sonoma County to deliver 53 workforce housing units atop approximately 12,500 square feet of retail; and Enso Village, the Zen-inspired residential project nearing its final stages of construction through a collaboration between Kendal Homes and the San Francisco Zen Center.
"Comstock prides itself not only on being a leader in construction and architecture, but also for reducing our carbon footprint and creating environmentally sustainable buildings," stated Robert Comstock, Principal, Comstock.
"This financing provides a long-term source of sustainability capital for this asset that has been accretive in the capital stack," said Nicholas Long, CFO, Comstock.