Real estate lender X-Caliber has arranged a $431m financing package for the redevelopment of the Coco Palms Resort on Kauai, Hawaii, using its Rural PACE-X financing solution.
Rural PACE-X is a proprietary structure that combines traditional real estate debt with Commercial Property Assessed Clean Energy (C-PACE) funding.
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For Coco Palms, the capital stack includes $185.6m in senior secured conventional financing arranged via X-Caliber Rural Capital affiliate XRL-ALC (XRA).
An additional $245.35m in C-PACE financing is being provided by CastleGreen Finance, another X-Caliber affiliate.
The loans are expected to collectively fund 80% of the project’s total costs.
The redevelopment spans 32 acres and is set to deliver a 351-room hotel, incorporating a mix of guest rooms and suites.
Plans call for the refurbishment of historic structures, rebuilding of accommodation, upgrades to site infrastructure, and the reinstatement of dining, retail and event areas.
X-Caliber president and CEO Chris Callahan said: “Coco Palms holds a unique place in Kauai’s history, and its restoration is an exciting development for the island and its residents.
“We are proud to support Reef and the entire development team with financing tailored to the project’s needs. This transaction reflects our commitment to providing creative capital solutions that help experienced sponsors execute complex and impactful projects.”
The scheme is being led by developer Reef Capital Partners, with hotel management company Highgate lined up to operate the property once it reopens.
Reef Capital Partners CFO Jon Day said: “Coco Palms is listed on both the National Register of Historic Places and the Hawaii Register of Historic Places, and we don’t take that lightly.
“X-Caliber has been an exceptional partner, bringing the creativity and conviction required to finance a project of this significance.”
Work on the Coco Palms redevelopment is in progress, with the resort scheduled to reopen in 2028.
