CCS Healdsburg Hotel—a partnership of Comstock Development Company, Wine Country Holdings and HVH Investment—is set to develop the Appellation Healdsburg hotel project in Healdsburg, Calif., for the new culinary-focused hotel brand and operator Appellation. Wine Country Holdings is an affiliate of Appellation. GreenRock Capital, a C-PACE finance company, and C-PACE provider Petros PACE Finance secured $62.6 million in Commercial Property Assessed Clean Energy financing for the project's construction.
"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," Chris Robbins, managing principal of GreenRock Capital, said in a statement. "This form of financing is fostering job growth while supporting environmentally conscious construction with a commitment to long-term economic and ecological benefits."
Slated to open in 2025, the 108-room boutique hotel will include a 160-seat Charlie Palmer restaurant and bar, a rooftop bar, a fitness club, a spa and two pools as well as 15,500 square feet of meeting and event space.
"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."
"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.
The project is being developed as part of the broader North Village mixed-use master plan, two miles north of downtown Healdsburg. The full master site encompasses a housing project with 27 Category-C townhomes; a mixed-use development by Burbank Housing, a 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.