X-Caliber announced that it provided $431 million of Rural PACE-X financing for the redevelopment of the Coco Palms Resort in Kauai, Hawaii. The financing will support the restoration of one of Hawaii’s most historic hospitality destinations.
Rural PACE-X is X-Caliber’s proprietary financing solution that combines conventional financing and Commercial Property Assessed Clean Energy financing. The Coco Palms financing includes $185.6 million of conventional senior-secured financing through X-Caliber Rural Capital affiliate XRL-ALC and $245.35 million of C-PACE financing through X-Caliber affiliate CastleGreen Finance.
Together, the loans will provide 80% loan-to-cost financing at an attractive blended interest rate. X-Caliber Rural Capital’s Gabe Mashaal originated the transaction.
The redevelopment of Coco Palms Resort spans about 32 acres and includes plans for a 351-room hotel with a mix of guest rooms and suites. The project includes the restoration of historic structures, reconstruction of accommodations, infrastructure upgrades, and the restoration of dining, retail, and event spaces.
Coco Palms became internationally known in the 1960s after Elvis Presley filmed Blue Hawaii on site. The property is being redeveloped by Reef Capital Partners and will be operated by Highgate.
The Rural PACE-X financing structure is designed to address both short- and long-term financing needs in rural areas. The conventional financing is intended to provide construction-through-stabilization funding for up to five years, while the C-PACE funds are intended to be long-term and prepayable at the borrower’s discretion.
The building’s energy efficiency design is estimated to save more than $11 million in costs over the lifetime of the improvements. The project is also expected to create more than 1,000 construction jobs and 350 full-time jobs.
The Coco Palms redevelopment is currently underway, with the property projected to reopen in 2028. X-Caliber said its Rural PACE-X pipeline continues to gain momentum, closing nearly $1 billion in volume since the product launched in late 2024.
KEY QUOTES:
“Coco Palms holds a unique place in Kauai’s history, and its restoration is an exciting development for the island and its residents. We are proud to support Reef and the entire development team with financing tailored to the project’s needs. This transaction reflects our commitment to providing creative capital solutions that help experienced sponsors execute complex and impactful projects.”
Chris Callahan, President and CEO of X-Caliber
“Coco Palms is listed on both the National Register of Historic Places and the Hawaii Register of Historic Places, and we don’t take that lightly. Restoring this property means honoring the culture, history, and people of Kauai at every step, and we are committed to doing exactly that. X-Caliber has been an exceptional partner, bringing the creativity and conviction required to finance a project of this significance. We are grateful for their support and proud to be moving forward on what will be a landmark restoration for Hawaii.”
Jon Day, CFO of Reef Capital Partners
“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 of Castle Green Finance
“This project reflects our core strategy of delivering tailored, flexible capital solutions that align with a borrower’s full capital stack, while expanding access to financing in markets and for assets that are often overlooked by traditional lenders. By doing so, we’re not only supporting complex developments like Coco Palms, but also driving sustainable economic growth and long-term value creation in rural communities.”
Jordan Blanchard
