ATLANTA, Georgia—Peachtree Group announced the closing of a $176.5 million retroactive Commercial Property Assessed Clean Energy (“CPACE”) loan for Dreamscape Companies’ recently renovated 2,520-room Rio Hotel & Casino in Las Vegas, Nevada.
The Rio, now under the Destinations by Hyatt brand, is a casino resort with two hotel towers, Ipanema and Masquerade, connected by a casino, restaurants, and retail establishments. Renovations completed in 2024 included a transformation of the Ipanema Tower guest suites, a reimagined casino floor, and updates to multiple food and beverage venues. The property improvement plan also delivered exterior enhancements, modernization of the central heating and cooling plant, electrical infrastructure upgrades, and renovations to the convention center.
“This deal highlights an inflection point for CPACE, with some of the nation’s largest financial institutions consenting to its use because they see the clear benefit to the capital stack,” said Jared Schlosser, head of originations and CPACE for Peachtree. “By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders.”
The CPACE loan retroactively funded the renovations, enabling the owners to pay down their senior loan. Retroactive CPACE funding allows 100 percent of the proceeds to be reimbursed for completed project costs.
“This transaction is not only a historic milestone for Peachtree Group, but also a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, managing principal and chief executive officer of Peachtree. “Through our vertically integrated platform, deep expertise, and disciplined approach, we have developed the infrastructure to be a leader in the private credit space. Our ability to deliver speed, creativity, and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
“We see tremendous opportunity ahead for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It’s an attractive alternative to more expensive forms of capital.”