Santa Barbara, CA, September 5, 2025
News Summary
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.
Concord Summit Arranges $16.5 Million C-PACE Construction Loan for New Marriott Tribute Hotel in Santa Barbara
A $16.5 million Commercial Property Assessed Clean Energy construction loan has been arranged to finance a new 105-room Marriott Tribute hotel project in Santa Barbara, California. The financing was sourced by a representative of the arranging firm on behalf of the borrower, Stratus Development Partners, with construction slated to begin this month and completion scheduled in 2027.
Topline facts and timeline
The loan uses the C-PACE structure. Construction is expected to start immediately and industry reports project roughly a two-year build, aligning with the 2027 completion target. The hotel will offer 105 guest rooms and a prominent rooftop amenity that overlooks the Pacific Ocean, adding a new hospitality option to Santa Barbara’s East Beach/Funk Zone neighborhood.
Why C-PACE was used
The capital stack for the development includes C-PACE financing, which was incorporated to lower the project’s overall cost of capital. Lender interest in the C-PACE portion was strong, driven by the property’s coastal location and the sponsor’s institutional track record. The financing arrangement is intended to make the construction phase more cost efficient and support energy- and resilience-related improvements that can be financed through C-PACE programs.
About the developer
The borrower, Stratus Development Partners, is a full-service developer based in Newport Beach, California. The firm presents a combined development team with more than 60 years of institutional real estate experience and a track record exceeding $1.5 billion in development across markets described as high-barrier to entry. That experience in challenging markets was cited as a key reason for the strong lender interest in the project.
Project site and neighborhood context
The hotel site sits within Santa Barbara’s East Beach/Funk Zone, an area known for wineries, breweries, art galleries, and a lively dining scene. The rooftop space will provide ocean views, positioning the property to appeal to both leisure visitors and local guests seeking elevated social spaces.
Brand positioning
The hotel will join Marriott’s Tribute Portfolio, a collection designed to capture the spirit of independent, boutique hotels with distinctive design and strong community ties. Tribute Portfolio properties emphasize memorable public spaces, art-driven design, bold color palettes, and locally rooted experiences, aiming to foster vibrant social scenes and meaningful connections with surroundings.
Market context and related local activity
The new Tribute hotel arrives amid notable hospitality activity in the region. Examples of brand expansion and property renovations in the broader Santa Barbara area illustrate continued investment in full-service and lifestyle hotels. Recent large-scale renovations at a nearby luxury resort and the addition of other Tribute Portfolio properties in the county reflect ongoing demand for refreshed, design-forward hospitality offerings along the coast.
What comes next
With construction beginning this month, the development will move into site work and vertical construction phases. The expected two-year schedule points to phased milestones including permit compliance, structural completion, interior fit-out, and final permitting ahead of the 2027 opening. Continued engagement with local planning and permitting authorities will shape the detailed timeline as the project advances.
Bottom line
The arrangement of $16.5 million in C-PACE construction financing adds a sustainable-capital element to a high-profile coastal hotel development. The funds aim to lower financing costs and support project goals while the developer leverages institutional experience to bring a new Tribute Portfolio hotel to Santa Barbara’s East Beach/Funk Zone by 2027.
Frequently Asked Questions
What is C-PACE financing?
C-PACE is a financing mechanism that allows property owners to fund energy, water, resilience, and efficiency upgrades through a special assessment tied to the property. It can be used during construction to help lower overall capital costs for eligible improvements.
Who is arranging the financing and who is the developer?
The financing was arranged by a capital markets team representative on behalf of the borrower, which is Stratus Development Partners, a Newport Beach-based full-service developer.
When will construction start and finish?
Construction is scheduled to start this month. Projected completion is in 2027, with reports indicating an approximate two-year construction timeline.
Where is the project located?
The hotel is located in Santa Barbara’s East Beach/Funk Zone neighborhood, known for its arts, dining, and beverage scene, and it will feature rooftop ocean views.
What will the new hotel offer?
The development will be a 105-room Tribute Portfolio hotel with a rooftop amenity overlooking the Pacific Ocean and public spaces designed to connect guests with the local community.
Key Project Features
| Feature | Detail |
|---|---|
| Financing amount | $16.5 million (C-PACE construction financing) |
| Arranging firm representative | Capital markets representative sourced financing for the borrower |
| Borrower / Developer | Stratus Development Partners, Newport Beach-based full-service developer |
| Project type | 105-room Marriott Tribute hotel (lifestyle/boutique focus) |
| Signature amenity | Rooftop amenity overlooking the Pacific Ocean |
| Location | East Beach/Funk Zone, Santa Barbara, California |
| Construction timeline | Start this month; completion scheduled for 2027 (approx. two years) |
| Developer experience | More than 60 years combined experience; over $1.5 billion in development |
| Brand attributes | Independent boutique character, bold design, local connections, social public spaces |
| Intended benefit of C-PACE | Lower overall cost of capital and financing for eligible energy/resilience improvements |
Deeper Dive: News & Info About This Topic
Additional Resources
- Boutique Hotelier: Marriott Tribute Hotel Santa Barbara Fund
- Wikipedia: Tribute Portfolio
- REBusinessOnline: Concord Summit Arranges $16.5M C-PACE Construction Financing
- Google Search: C-PACE construction financing Marriott Tribute Hotel Santa Barbara
- Travel and Tour World: Santa Barbara Marriott Hotel Gets Boost for New Development
- Google Scholar: C-PACE financing hotels
- Santa Ynez Valley Star: Corque Hotel in Solvang Joins Marriott Bonvoy (Tribute Portfolio)
- Encyclopedia Britannica: Tribute Portfolio
- Santa Maria Times: Solvang’s Corque Hotel Joins Marriott’s Tribute Portfolio
- Google News: Corque Hotel Solvang Tribute Portfolio
