BGL Real Estate Advisors Completes Retroactive C-PACE Financing and Loan Restructuring for Historic Stambaugh DoubleTree Hilton Hotel in Downtown Youngstown, Ohio
Brown Gibbons Lang & Company (BGL) is pleased to announce the closing of Retroactive C-PACE financing with Stonehill for the 125-key DoubleTree by Hilton hotel in Downtown Youngstown, OH and hotel sponsor Youngstown Acquisition Holdings (YAH). BGL assisted YAH with the original construction financing that occurred in 2016 to bring life to the first hotel in the Downtown Youngstown corridor since 1976. The 2016 financing utilized various sources of capital that included federal and state historic tax credits, City of Youngstown loans, a state-funded loan through the Ohio Water Development Authority (OWDA) program, a port capital lease, conventional bank debt, bridge loans and sponsor equity.
The historic Stambaugh Building was originally constructed in 1907 as an office building, but officially reopened in 2018 as a 125-key DoubleTree by Hilton hotel. The property also features a 6,300 square foot restaurant (Bistro 1907), a fitness center, business center, and 18,300 square feet of banquet and meeting space.
PACE (Property Assessed Clean Energy) is a newer financing product designed to provide new capital for energy efficiency and renewable energy improvements for private commercial (C-PACE) and residential (R-PACE) properties.
The retroactive nature of the financing with Stonehill brought new capital to the hotel specific to energy related costs that were traced back to when the project was under construction between 2016-2018. New legislation authorized the creation of an Energy Special Improvement District (ESID), given this was the first PACE loan the city of Youngstown has closed. The global restructuring of the capital stack included the exit of the project’s federal historic tax credit investor and loans with the City of Youngstown and Ohio Water Development Authority. The long-term, 25-year loan with Stonehill will provide a much-needed attractive cost of capital to position the hotel for long-term success.
Stonehill is an affiliate capital provider of Peachtree Group, located in Atlanta, GA. Stonehill is a leader in C-PACE financing for development projects, creating liquidity for eligible projects both under construction and recently completed.
YAH is owned by the principals of Pan-Brothers Associates Inc., a family owned and operated business which offers full real estate development, management and brokerage services. Founded in 1972 by three brothers, Pan-Brothers began by acquiring residential and commercial properties in Brooklyn, NY with a focus on adding value by renovating and maximizing revenues. By maintaining its original investment practices and style of management over the past 42 years, Pan-Brothers Associates has steadily increased its investment portfolio by including larger scale commercial, retail and residential developments in New York, New Jersey, Florida, California and Ohio.
BGL’s Real Estate Advisors team offers comprehensive real estate investment banking services tailored to the middle market. It provides client-focused solutions with an emphasis on real estate advisory, debt, preferred and private equity placement, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset acquisitions and dispositions across all asset classes. The team assists real estate owners and developers looking to form alliances and joint ventures with single-source capital providers to gain local and institutional access for all capital needs.