Twain Financial Partners announced the successful financing of $8.1 million in Commercial Property-Assessed Clean Energy (C-PACE) financing and $16.9 million in Ground Lease capital to the Sinclair Hotel in Fort Worth, TX.
The combined investment of $25 million was used to reduce the senior debt by $7 million, retire a mezzanine loan of $11 million, and establish sufficient debt service reserves to provide the project cash flow relief as the hospitality industry recovers from the current COVID-19 pandemic.
The Sinclair Hotel is a historic 16-story hotel originally built in 1929. It was recently renovated into a 164-room full-service hotel nationally branded as part of the boutique Autograph Collection by Marriott. The hotel opened in October 2019 and operated successfully for five months before being forced to shut down due to COVID-19.
The Sinclair Hotel has been featured in a number of publications and media outlets including Architectural Digest, The Today Show, and Fortune for its many impressive tech-forward efficiencies. Its features include digital showers, electric touchscreen mirrors that can order room service, and a number of other high-end amenities. Additionally, Sinclair is the world’s first battery-powered hotel, replacing a traditional diesel generator and backup power source with a lithium ion battery pack.
“The ground lease offering from Twain Financial is an excellent option in today’s tough credit market for hotel loans for recapitalization,” said Farukh Aslam, lead developer of the project. “David Taylor and his team were very professional and prompt in approval and closing process.”
“Twain is proud to announce the closing of C-PACE financing and ground lease capital on the Sinclair Hotel,” said David Taylor, Director of Strategic Initiatives at Twain Financial Partners. “This project showcases Twain’s unique ability to utilize creative capital solutions to help reposition challenged assets amid the pandemic.”
Twain Financial Partners is an investment management firm located in St. Louis, Missouri with over $4 billion in assets under management within the public-private partnership sector. The firm works with a wide variety of investment types, specializing in tax credit, structured debt and real estate transactions. Twain works closely with financial institutions and corporations to structure and manage investments that offer both attractive economic return and social benefits.