Twain Financial Partners provided $34 million in Property Assessed Clean Energy (PACE) Financing to the development of a luxury boutique hotel and parking structure located in the Old Town neighborhood at the heart of Temecula, CA. The Temecula Valley attracts over three million tourists annually and is known for its 40+ wineries, golf courses, nature trails and preserves, breweries/distilleries, shopping and dining.
The project, currently 1.75 acres of unimproved land, will be transformed into a 185-room Autograph Collection hotel. Once completed, the hotel will feature over 189,000 square feet of meeting space, a ballroom, wedding venue, destination restaurants and bars, rooftop terrace, outdoor pool and retail space. Construction is scheduled to begin in early 2020 and expected to complete by September 2021.
Twain provided financing for the resort through Western Riverside Council of Governments’ (WRCOG) C-PACE program. This type of financing offers developers low-cost, long-term financing for 100 percent of the cost of energy efficiency, renewable energy and water conservation improvements for commercial real estate projects.
“WRCOG was thrilled to work with Twain and the City of Temecula to help make this project happen and continue with our shared goals of using C-PACE as a financial tool for developers and property owners, while building a sustainable future,” said Bonnie Wright, WRCOG Chairwoman and Mayor of Hemet.
“This was a complex deal with many moving pieces that all needed to be coordinated prior to close,” said Fran Doherty, Business Development Officer at Twain. “It was one of the most challenging deals that we’ve structured to date, but we’re very proud of our team for finding creative solutions and continually pushing forward.”
The project will be managed by Truax Development and will include water and energy efficiency features and innovative automated technology in the parking structure. The PACE proceeds will be used to fund seismic improvements on both the hotel and parking structure.
“Twain and WRCOG provided a critical piece in bringing the Truax Hotel to Old Town Temecula,” said Bernard L. Truax, II, President and Chief Executive Officer of Truax Development. “Public private partnerships can work, and these types of collaborative efforts make a difference to our community. WRCOG’s PACE Financing funding program and their ongoing support have moved this project from the drawing board to fruition, creating jobs and strengthening our region economically.”