Construction underway on the Marriott Tribute Hotel with rooftop views of the Pacific Ocean in Santa Barbara's East Beach/Funk Zone.
Santa Barbara, CA, September 5, 2025
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 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.
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.
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.
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 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.
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.
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.
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.
A $16.5 million C-PACE construction loan was arranged to support the Marriott Tribute Hotel project.
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.
The new hotel will have 105 guest rooms and a rooftop amenity area overlooking the Pacific Ocean.
Construction is slated to start this month and is expected to be completed in 2027, with an approximate two-year build timeline.
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.
The site is in Santa Barbara’s East Beach/Funk Zone, a neighborhood known for food, drink, galleries and waterfront attractions.
| 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 |
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