Construction underway on the Marriott Tribute Hotel with rooftop views of the Pacific Ocean in Santa Barbara's East Beach/Funk Zone.
Santa Barbara, CA, September 5, 2025
Concord Summit Capital arranged a $16.5 million C-PACE construction loan to fund a new 105-room Marriott Tribute Hotel in Santa Barbara’s East Beach/Funk Zone. Sourced for borrower Stratus Development Partners, the financing helped lower the project’s blended cost of capital and attracted specialized lenders due to the seaside location and sponsor track record. Construction begins this month with completion expected in 2027, and the property will feature a rooftop amenity with Pacific Ocean views. The project highlights growing use of C-PACE for energy-linked construction financing in hospitality developments.
What happened: A $16.5 million Commercial Property Assessed Clean Energy (C-PACE) construction loan has been arranged to fund a new 105-room Marriott Tribute Hotel in Santa Barbara, California. The financing was sourced by a capital arranger on behalf of the project sponsor, a Newport Beach–based full-service developer. Construction is set to begin this month and the project is scheduled for completion in 2027.
The loan uses the C-PACE program, which ties energy and resiliency financing to a property tax assessment. Incorporating C-PACE into the construction capital stack is reported to have reduced the project’s overall cost of capital, and the loan attracted strong interest from the C-PACE lending community because of the project location and the sponsor’s track record.
The new Tribute Portfolio branded hotel will offer 105 guest rooms and include a rooftop amenity space that overlooks the Pacific Ocean. The site is located in Santa Barbara’s East Beach/Funk Zone neighborhood, an area known for wineries, breweries, art galleries and dining. Construction is expected to take roughly two years from the start date, aligning with the 2027 completion timeline.
The developer behind the project is a full-service firm with more than 60 years of combined institutional real estate experience and a development track record exceeding $1.5 billion. The sponsor’s past work includes projects in high-barrier-to-entry markets, which helped draw lender interest for the C-PACE financing.
C-PACE is commonly used to finance energy efficiency, renewable energy and resilience upgrades, and in this case it was applied as construction financing. Using C-PACE can extend repayment periods and attach the obligation to property assessments, which may lower near-term borrowing costs and improve overall capital stack efficiency for developers building energy-conscious or higher-cost projects.
The Tribute Portfolio brand is positioned as a collection of independent, boutique hotels that emphasize unique design, strong local connections and vibrant social spaces. Properties in the brand family are described as focusing on characterful identity, distinctive art and bold design choices that connect guests to the surrounding community.
The new project adds to a dynamic regional hospitality market that has seen recent activity, including a resort renovation and a separate hotel joining a global loyalty program. These moves reflect broader demand for distinctive coastal lodging and upgraded guest experiences in the Santa Barbara region.
Industry gatherings and webinars scheduled across a range of markets continue to highlight financing, development and operational trends in hospitality, industrial, multifamily and mixed-use sectors. Topics in upcoming events include student housing outlooks, mixed-use development strategies, and regional market performance across major U.S. metros. Such programming informs lenders, developers and operators on capital availability and project feasibility in markets like Santa Barbara.
The arrangement of a sizeable C-PACE construction loan for a 105-room Tribute Portfolio hotel in Santa Barbara signals continued investor and lender interest in well-located, design-forward hospitality projects. The use of C-PACE helped optimize the capital stack for construction, and the project timeline points to a two-year build that should deliver the property by 2027.
The project secured a $16.5 million C-PACE construction loan, a financing tool often used for energy-related and resilience-oriented improvements and construction.
The hotel is being developed by a Newport Beach–based full-service developer with more than 60 years of combined real estate experience and a development portfolio of more than $1.5 billion.
The planned hotel will have 105 guest rooms and a rooftop amenity space with Pacific Ocean views.
Construction is slated to begin this month and the project is expected to complete in 2027, with an approximate two-year construction period.
C-PACE was chosen because it can lower near-term cost of capital, extend repayment terms and was attractive to lenders given the project’s location and the sponsor’s experience.
| Feature | Details |
|---|---|
| Financing type | C-PACE construction loan totaling $16.5M |
| Developer / Sponsor | Full-service developer based in Newport Beach with 60+ years combined experience and $1.5B+ in development |
| Hotel brand | Tribute Portfolio (boutique, design-forward brand) |
| Room count | 105 guest rooms |
| Amenities | Rooftop amenity space with Pacific Ocean views |
| Location | East Beach/Funk Zone, Santa Barbara, CA |
| Construction timeline | Start: this month; Completion: 2027 (approx. two-year build) |
| Capital stack benefit | C-PACE use helped reduce overall cost of capital |
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