Development is Underway at Trilogy Investment Co.’s Encanto, AZ, BTR Community in Avondale, AZ

Rendering of planned Rêve at Encanto West 
Build-To-Rent (BTR) community
 in Avondale, AZ

AVONDALE, Ariz.—Trilogy Investment Company, a leader in Build-To-Rent (BTR) community development, announces that site development has commenced at Rêve at Encanto West in Avondale, Arizona, with utility construction underway. 

Planned 84-townhome BTR community, Avondale, AZ

This 84-townhome BTR community, developed in collaboration with Cimbra Partners, LLC., represents the first strategic joint venture partnership with Cimbra Partners.

"With grading and sewer line going in at Rêve at Encanto West, the community is starting to take shape," states Jason Joseph, CEO and Partner at Trilogy Investment Company. "This project reinforces our commitment to addressing the region's strong demand for rental housing.”

Situated on a prime seven-acre plot at the intersection of Encanto Blvd. and N. Avondale Blvd. across from state-of-the-art West Point High, Rêve at Encanto West is a testament to Trilogy's commitment to strategic location selection. This project is one of three Trilogy ventures in the Avondale area and its fifth in Arizona, further solidifying our presence in the state.

“We are excited about our partnership with Trilogy Investment and our shared vision to create rental homes that redefine the narrative around renting,” said César J. Rodríguez, Co-founder and Managing Partner of Cimbra Partners, LLC.

The gated townhome community offers residents the feeling of home and community with the flexibility of renting. Homes at Rêve at Encanto West include three bedrooms and two and a half bathrooms, flexible space for a bedroom or office, 9-foot ceilings, a stainless steel appliance package, granite countertops and a garage.

Neighborhood amenities will include a clubhouse with grilling stations and a pool,

Market fundamentals in Avondale, Arizona, are strong. A growing submarket is supported by strong job and population growth in Phoenix.

 CONTACT

Denim Marketing

Carol Morgan

770-383-3360

Carol@DenimMarketing.com

www.DenimMarketing.co

www.CimbraPartners.com.

www.trilogyic.com 

 

Peachtree Group Provides $40 Million in CPACE Financing For AC Hotel San Diego Downtown Gaslamp Quarter

Recently opened 147-room AC Hotel San Diego
Downtown Gaslamp Quarter in California 

ATLANTA, GA – With ongoing credit market dislocations, Peachtree Group originated a $40 million retroactive CPACE loan to BLG SAN DIEGO, LLC (BLG) for its recently opened 147-room AC Hotel San Diego Downtown Gaslamp Quarter in Calif. 

 

 The Commercial Property Assessed Clean Energy (CPACE) financing was amortized over 30 years and required no payment for a year, followed by five years of interest-only payments.

 

Also, the proceeds allowed BLG to pay down its senior loan with California-based Preferred Bank and E.Sun Commercial Bank, Ltd. to under $20 million, thereby mitigating the banks’ exposure.\

Greg Friedman

“This innovative capital structure significantly alleviated the immediate financial pressures, enabling the hotel to establish a solid cash flow foundation during its initial years of operation,” said Greg Friedman, Peachtree Group’s managing principal and CEO.

 

Despite the U.S. hotel industry's strong RevPAR performance, multiple headwinds exacerbate financial stress for owners. These headwinds include the lagging profitability of U.S. hotels, persistently high interest rates and historically high property insurance costs.

Brad Honigfeld

“When we opened the AC Hotel San Diego Downtown Gaslamp Quarter in March 2023, there was a sizeable disconnect between hospitality fundamentals, which are strong, particularly in San Diego, while the debt markets were deteriorating meaningfully,” said Brad Honigfeld, founder, chairman and co-CEO of the New Jersey-based Briad Group®. “The Fed’s tightening process and rising fund rates drove up the cost of debt considerably.”

 

Hotel and commercial real estate owners face a tough few years as trillions of dollars in debt come due, and refinancing gets harder, compounded by banks' tightened lending standards.

 

According to JLL Research, by the end of 2024, $5.8 billion worth of U.S. hotel-securitized loans will be due for repayment, requiring full payment, refinancing, extension or sale. However, if these loans were refinanced at current interest rates, most would struggle to generate enough income to cover their debt costs.

 

In this challenging lending market, Commercial Property Assessed Clean Energy (CPACE) financing has become a vital source of liquidity. This option is growing in importance as owners face impending debt maturities and scarce refinancing opportunities.

 

CPACE financing has rapidly gained traction in the commercial real estate market, reaching a cumulative $7.2 billion in the U.S. in just over a decade, according to PACENation.

 

This significant milestone underscores the growing acceptance and adoption of CPACE financing as an innovative and effective solution.

 

Peachtree Group, a key player in this market, has demonstrated its commitment to CPACE financing, with over $800 million in CPACE originations.  

 

The AC Hotel San Diego Downtown Gaslamp Quarter

The AC Hotel San Diego Downtown Gaslamp Quarter is in downtown San Diego's Gaslamp Quarter, known for its restaurants, shops and nightlife.

 

“Our hotel was benefiting from its location and performing to its original underwriting, but the debt costs were straining cash flows,” Honigfeld said.

 

 

Contact:

 

Charles Talbert

 678-823 7683  

 ctalbert@peachtreegroup.com                                                                                                                                                         

 Chris Daly

President

DG Public Relations

(703) 864-5553

chris@dalygray.com

www.dalygray.com

 www.peachtreegroup.com.