Construction of Luxury Boutique Hotel Slated for Completion in 2025
SAN FRANCISCO and HEALDSBURG, Calif., Nov. 13, 2023 — GreenRock Capital, a leading C-PACE Finance Company, and Petros PACE Finance, the largest C-PACE provider in the country and a leader in innovative and structured finance, together announced the close of $62.6 million in Commercial Property Assessed Clean Energy (C-PACE) financing for the construction of the Appellation Healdsburg hotel project located at 101 Dovetail in Healdsburg, Sonoma County. CCS Healdsburg Hotel, LLC, a partnership between Comstock Development Company, Wine Country Holdings an affiliate of Appellation, and HVH Investment will develop the property for the new culinary-forward luxury hotel brand and operator, Appellation.
“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,” said Chris Robbins, managing principal of GreenRock Capital. “This form of financing is fostering job growth while supporting environmentally conscious construction with a commitment to long-term economic and ecological benefits.”
Anticipated to open in 2025, the 108-key luxury boutique hotel Appellation Healdsburg will deliver the Wine Country lifestyle with an array of amenities and facilities, including a 160-seat Charlie Palmer signature restaurant and bar, rooftop bar, fitness club, spa and two pools, and 15,500-square-feet of meeting and event space. The property will hold a unique market position as the only 4½ star resort that provides the amenities and experiences that the modern-day traveler seeks, while intimately immersing guests into the local community.
“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.”
The project is being developed as part of the broader North Village mixed-use master plan, strategically located two miles north of downtown Healdsburg. The full master site encompasses: a housing project consisting of 27 Category C townhomes; a mixed-use development by Burbank Housing, a leading 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.
“Comstock prides itself not only on being a leader in construction and architecture, but also for reducing our carbon footprint and creating environmentally sustainable buildings,” stated Robert Comstock, Principal, Comstock. “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.
About GreenRock Capital
GreenRock Capital LLC, based in the San Francisco Bay Area and operating throughout the United States where commercial PACE (C‑PACE) is available, is exclusively focused on originating, advising and helping lead financings. The co‑founders have been active participants in the C‑PACE sector since 2014. In 2023, the firm closed the largest C-PACE loan to-date on an office property in the U.S., as well as the second largest C-PACE loan on a single property of any type in the U.S. For more information, visit GreenRock at https://www.greenrockhc.com/.
About Petros PACE Finance
Petros PACE Finance, LLC is the national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values and meet environmental, social and governance (ESG) goals. The company is a platform portfolio investment of Apollo Global Management. Its leadership team has decades of executive-level experience in private credit and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.
About Comstock
Comstock Development Company, with over 30 years of proven development experience and deep roots in the City of Healdsburg, is a vertically integrated organization comprising industry-leading talent. We take immense pride in our unwavering commitment to creating spaces distinguished by their sense of community and heart, ensuring that every vision is brought to life with unparalleled excellence. Our extensive track record includes the development and leasing of an impressive 3,000,000 square feet of office and retail spaces, the acquisition, entitlement, and sale of more than 40 residential projects, totaling over 4,000 units, and the successful design, construction, and current operation of a 17,000 square-foot winery in Healdsburg.
About Appellation
Appellation, meaning “to give a name to a place,” crafts unparalleled culinary-centered places of hospitality that immerse guests in the uniquely local aspects of exceptional destinations. The first hotel brand born from the merger of culinary and hospitality, Appellation is about comfort and connection over formality and extravagance – perfectly blending luxury amenities with real world experiences born of this place. The company is the vision of co-founders Charlie Palmer, one of America’s best-known chefs who arguably created the successful hotel restaurant model, and Christopher Hunsberger, who spent over 30 years in strategic leadership roles with Four Seasons Hotels and Resorts. When the first Appellation hotels open in Healdsburg (CA), Sun Valley (ID), Petaluma (CA), Pacific Grove (CA), they will set a new standard for immersion in culinary, culture and community that can only be found “here.” To learn more, visit www.appellationhotels.com.
SOURCE Petros PACE Finance, LLC
