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 $16.5M C-PACE Construction Loan for 105‑Room Marriott Tribute Hotel in Santa Barbara
Concord Summit Capital has arranged a $16.5 million construction loan using C-PACE (Commercial Property Assessed Clean Energy) financing for a new 105-room Marriott Tribute Hotel in Santa Barbara, California. The loan was sourced by a Concord Summit representative on behalf of the project borrower, Stratus Development Partners, a full-service developer based in Newport Beach.
What’s happening and when
Construction is set to begin this month, with completion scheduled in 2027. Project timelines reported by multiple sources indicate the build should take around two years to finish. The property will feature a rooftop amenity space with views of the Pacific Ocean and will be located in Santa Barbara’s East Beach/Funk Zone, an area known for wineries, breweries, art galleries and restaurants.
Why C-PACE was used
Project advisers say the use of C-PACE in the capital stack helped lower the overall cost of capital for construction. The financing drew notable interest from lenders that specialize in C-PACE because of the hotel’s seaside location and the developer’s track record. Incorporating long-term energy-linked financing can reduce upfront costs and spread certain eligible improvements over the life of the assessment.
About the developer
Stratus Development Partners is described as a full-service developer with more than 60 years of combined institutional real estate experience and a development history exceeding $1.5 billion. The firm’s resume includes work in what are called high-barrier-to-entry markets, which typically have strong demand and limited available land or approvals.
The brand and the site
The planned hotel will be part of Marriott’s Tribute Portfolio, a collection of independent, boutique-style hotels that emphasize unique design, local connections and lively public spaces. Tribute Portfolio properties are known for strong visual identity, bold design choices and a focus on local art and culture. The Santa Barbara project’s rooftop amenity aims to tap those brand traits by creating social spaces that connect guests to the coast and neighborhood.
Financial and market context
Using C-PACE for construction financing is becoming more common in projects that include energy or resilience improvements, allowing borrowers to finance eligible upgrades over long terms. Lender interest in this project was reportedly high because the location is attractive to hospitality investors and because the sponsor has a documented development track record. Reducing the blended cost of capital during construction can improve project feasibility and cash flow assumptions for opening and early operations.
Local context and related hotel activity
Santa Barbara’s hospitality market has seen both new projects and significant renovations. Nearby resorts and hotels have recently completed or announced upgrades, reflecting ongoing investment in the market. The East Beach/Funk Zone location places the new Tribute hotel within a lively, walkable district that attracts visitors for dining, art and waterfront access.
Event and industry note
Several regional and national industry gatherings and webinars are scheduled across markets this year, covering topics such as retail, industrial, multifamily, student housing and mixed-use development. These events often include sessions on development financing, capital availability and market trends that can affect hotel and real estate projects like this one.
FAQ
What financing was arranged?
A $16.5 million C-PACE construction loan was arranged to support the Marriott Tribute Hotel project.
Who is the developer?
The borrower is Stratus Development Partners, a Newport Beach-based full-service developer with a multi-decade combined track record and more than $1.5 billion in projects.
How many rooms and what amenities?
The new hotel will have 105 guest rooms and a rooftop amenity area overlooking the Pacific Ocean.
When does construction start and finish?
Construction is slated to start this month and is expected to be completed in 2027, with an approximate two-year build timeline.
Why use C-PACE?
C-PACE helped reduce the overall cost of capital for the construction financing and attracted interest from specialized lenders because of the project’s location and sponsor profile.
Where is the project located?
The site is in Santa Barbara’s East Beach/Funk Zone, a neighborhood known for food, drink, galleries and waterfront attractions.
Key project features
| Feature | Detail |
|---|---|
| Financing amount | $16.5 million (C-PACE construction financing) |
| Financing source | Arranged by Concord Summit Capital representative on behalf of borrower |
| Borrower / Developer | Stratus Development Partners (Newport Beach) |
| Hotel brand | Marriott Tribute Portfolio (boutique-style, locally connected) |
| Rooms | 105 guest rooms |
| Signature amenity | Rooftop space with Pacific Ocean views |
| Location | East Beach / Funk Zone, Santa Barbara, CA |
| Construction timeline | Starts this month; completion 2027 (approx. two years) |
| Developer experience | More than 60 years combined experience; > $1.5 billion in development |
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
Author: Construction FL News
FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
