Client: Sam Moon Group
Location: Dallas, Texas
Project Type: New Construction & Recapitalization
Development Capital
In February 2021, PACE Equity Finance provided $5 million in financing to bridge a capital shortfall in the new construction of the JW Marriott Dallas Arts District hotel. It is located in the heart of the central business district, ideally located near the I-30 and I-35 interchanges. The 17-story hotel sits atop a 10-story exterior parking structure.
For this project, C-PACE financing was leveraged as a gap financing mechanism. Sam Moon Group used our flexible capital to solve for financing needs mid and post construction.
Our low-cost C-PACE financing provided a strategic alternative to additional mezzanine debt, delivering reduced overall WACC and increased project IRR.
“We had a gap in our capital stack and chose PACE Equity Finance to fill it. […] They worked diligently with our senior lenders and […] PACE Equity Finance kept things moving to hit our closing.”
Daniel Moon, VP/General Counsel, Sam Moon Group
Recapitalization
Our financing remained in place for two years, through the opening of the hotel in July of 2023. A month after opening, Sam Moon Group returned to PACE Equity Finance after unexpected increases in construction costs led to cost overruns. At this time, they replaced their own equity, which they used to cover these unanticipated costs, with additional C-PACE financing. Through this recapitalization, a second PACE assessment on the project allowed them to add additional funding while maintaining the original low-cost capital.
“PACE Equity Finance was flexible. They created a very positive experience despite the complexity of this deal. They were organized, quick and efficient.”
James Drysdale, VP Finance, Sam Moon Group