Peachtree Confirms $176.5 Million CPACE Loan for Rio Renovation

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Peachtree Group has released details of a retroactive Commercial Property Assessed Clean Energy (CPACE) loan for Dreamscape Companies’ recently renovated Rio Hotel & Casino in Las Vegas.

The arrangement was worth $176.5 million, the largest credit transaction in the history of Peachtree. Peachtree also said it was one of the biggest deals of its kind in the U.S.

Rio, now under the Destinations by Hyatt brand, underwent a largescale renovation. This included a full transformation of Ipanema Tower guest suites, reimagined casino floor and upgrades to food and beverage venues.

The property improvement plan also delivered exterior improvements, modernization of the central heating and cooling plant, electrical infrastructure upgrades, and renovations to the convention center.

The CPACE loan retroactively funded the renovations enabling the owner to pay down its senior loan.

Peachtree Talks Up Potential of CPACE Loans

Jared Schlosser, head of originations and CPACE for Peachtree, said the deal highlighted an “inflection point” for CPAC. He said that by closing quickly on a marquee hospitality asset, with the deal completed in 60 days, it was able to strengthen the position of both the owner and its lenders.

“We see tremendous opportunity ahead for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It’s an attractive alternative to more expensive forms of capital.”

Greg Friedman, managing principal and CEO of Peachtree, added: “This transaction is not only a historic milestone for Peachtree Group, but also a testament to the ecosystem we have built over the past 18 years.”