The historic Fairmont Breakers Hotel in Long Beach has received $122 million in refinancing for the refurbishment and reopening of the property.
New York-based X-Caliber Funding and its affiliate, CastleGreen Finance, provided the loan. Roughly $64.5 million of that financing are bridge loans, secured by a first mortgage and historic tax credits, while the rest comes from Commercial Property Assessed Clean Energy financing, or C-PACE financing, a type of commercial property financing which uses borrowed capital to pay for the upfront costs associated with energy efficient or renewable energy improvements.
“We are very pleased to provide this unique financing combination for such an impactful project that perfectly aligns with our lending products and business model,” Chris Callahan, president and chief executive of X-Caliber, said. “The tax credits are designed to restore, reuse and preserve iconic landmarks like the Fairmont Breakers Hotel, and they provide the borrower with greater flexibility to support their capital needs.”
The Fairmont Breakers Hotel is also being designed to be energy efficient. It’s estimated to reduce water consumption by over 6.2 million gallons of water a year and to produce cost savings of over $2.5 million over the lifetime of the financing.
“Partnering historic tax credits and C-PACE financing is a double win,” Sal Tarisa, managing partner at CastleGreen Finance, said. “It breathes new life into aging structures while promoting energy savings and environmental responsibility.”
The renovated Beakers Hotel, which has been rebranded under the Fairmont brand, is located at 210 East Ocean Blvd. It features 185 guest rooms, a rooftop pool, several restaurants and a transformation of the hotel’s sky room.
Originally built in 1926, the 15-story hotel is among the oldest buildings in Long Beach and has a star-studded history of hosting guests including John Wayne, Clark Gable, Cary Grant and Elizabeth Taylor.
The hotel…
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