X-Caliber Holdings—a national direct commercial real estate lender focused on impact lending—announced it closed $26.3 million in financing with its first Rural PACE-X transaction for the ground-up construction of a new hotel in Silverthorne, Colorado. Upon completion, the 111-room hotel will be a Holiday Inn Express brand under IHG Hotel & Resorts and is being developed by sponsor REV Development.
This financing consists of $20 million of conventional senior-secured financing through an affiliate of X-Caliber Rural Capital and $6.3MM of Commercial Property Assessed Clean Energy (C-PACE) financing through CastleGreen Finance. And the conventional funds are intended to provide construction-through-stabilization financing for up to five years. C-PACE funds are intended to be long-term but are prepayable at the borrower’s discretion.
By providing lower-cost capital through blending C-PACE and conventional construction loan funds, a Rural PACE-X execution could help reduce development costs, making energy-efficient building practices more accessible and economically viable for property owners and developers.
Rural PACE-X is X-Caliber’s latest product. It combines conventional funding with a C-PACE structure to deliver high-leverage financing for ground-up construction projects in micro-rural areas. X-Caliber’s Eric Carlson originated the loan.
This project will create 36 direct permanent jobs. And Silverthorne’s new Holiday Inn Express is anticipated to open next year.
KEY QUOTES:
“By leveraging our expertise in both USDA lending and C-PACE financing, we’re not only able to support the development of the hotel, but the entire ecosystem of local businesses that will benefit from increased tourism and economic activity.”
– Chris Callahan, President and CEO of X-Caliber
“This ground-up hotel construction is a prime example of how tailored financial solutions for impactful businesses can drive sustainable growth in underserved rural regions.”
– Jordan Blanchard, Co-Founder of X-Caliber Rural Capital
“The innovative approach by Rural PACE-X addresses the challenges faced by rural areas, ensuring that development is not just about immediate financial gain, but also about long-term environmental stewardship and a sustainable future.”
– Sal Tarsia, Managing Partner, CastleGreen Finance
