The Peachtree Group announced it has closed a $176.5 million loan for Dreamscape Companies’ recently renovated 2,520-room Rio Hotel & Casino in Las Vegas.
The Rio, now under the Destinations by Hyatt brand, features two hotel towers, Ipanema and Masquerade.
Renovations completed in 2024 included a full transformation of the Ipanema Tower guest suites, a reimagined casino floor, and significant upgrades to multiple food and beverage venues. The comprehensive property improvement plan also delivered exterior enhancements, modernization of the central heating and cooling plant, electrical infrastructure upgrades, and renovations to the convention center.
The deal is referred to as a retroactive Commercial Property Assessed Clean Energy loan. The CPACE loan retroactively funded the renovations, enabling the owners to pay down their senior loan. Retroactive CPACE funding allows 100% of the proceeds to be reimbursed for completed project costs.
“This deal highlights an inflection point for CPACE, with some of the nation’s largest financial institutions consenting to its use, because they see the clear benefit to the capital stack,” said Jared Schlosser, head of originations and CPACE for Peachtree. “By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders.”
The CPACE market has surpassed $10 billion in cumulative U.S. originations in just over a decade, according to the C-PACE Alliance, with strong growth expected as more institutional owners and lenders recognize its value, according to Jared Schlosser, head of originations and CPACE for Peachtree.
“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.”
Peachtree is one of the most active CPACE lenders in the country, with more than $1.5 billion in originations. The firm’s credit platform spans CPACE, bridge, mezzanine and construction lending, providing creative capital solutions across market cycles.