George Smith Partners successfully arranged $32.4 million in financing for the ground-up development of a 250-room, 35-acre, casitas-style resort IHG Hotel Indigo in Coachella. The financing included both a $24.4 million senior construction loan and an $8.0 million PACE funding for the hotel. This hotel will be the closest hotel to the Empire Polo Club – the site of many famous music festivals held annually. The property includes a 13,000-sf convention center, 10,000 square-foot salt water pool with a summer cooling system and a DJ booth/cat walk, an 11-acre ‘playground’ to host music related events, wellness retreats and corporate/private events. The 250 guestrooms, which has private entrances and in-suite bathrooms, are located in spacious 2, 4 and 6 bedroom casitas with living rooms and social areas for entertaining options. The hotel also provides a restaurant, spa, gym and yoga/pilates studio.
In today’s lending environment, hotel construction is a challenge to finance, but with GSP’s deep relationships, they were able to find a lender who was excited about the concept. Also, this is the first-ever PACE-financed new construction hotel project in California. The PACE equity, essentially an energy loan, finances the energy-efficient HVAC, which gives the Sponsor the ability to finance the high-end, environmentally friendly resort hotel they envision. The City of Coachella has also enthusiastically supported the project by providing a $25 million tax abatement and approving Mello Roos bond financing for the infrastructure.
By communicating the Sponsor’s proven track record of developing and operating hotels, as well as their strong connections to A-list performers and music labels available for future concert performances, GSP was successful in proving the Sponsor’s unique ability to make this resort a ‘go to’ destination during the area’s many music festivals.
ALL TERMS CONFIDENTIAL
- No related financings.