Peachtree Group Completes Retroactive $176.5 Million Loan for Las Vegas Rio Hotel Renovation

Peachtree Group has closed a $176.5 million CPACE loan for the renovation of the Rio Hotel & Casino in Las Vegas, marking one of the largest CPACE financings in the U.S.

Peachtree Group has completed a $176.5 million Commercial Property Assessed Clean Energy (CPACE) loan for the Rio Hotel & Casino in Las Vegas, Nevada. This transaction is the largest credit deal in Peachtree’s history and ranks among the largest CPACE financings in the United States.

The Rio Hotel & Casino, operating under the Destinations by Hyatt brand, includes two hotel towers, Ipanema and Masquerade, connected by a casino, dining, and retail spaces. Renovations completed in 2024 involved a comprehensive overhaul of the Ipanema Tower guest suites, updates to the casino floor, and enhancements to various food and beverage venues. Additional improvements included exterior upgrades, modernization of the central heating and cooling systems, electrical infrastructure enhancements, and convention center renovations.

The CPACE loan was structured to retroactively finance these renovations, allowing the owners to reduce their senior loan obligations. This form of funding enables 100% reimbursement for completed project costs, providing a financial advantage to the property owners.

The CPACE market in the U.S. has exceeded $10 billion in cumulative originations over the past decade, with expectations for continued growth as more institutional owners and lenders adopt this financing method. Peachtree Group is a significant participant in this market, with over $1.5 billion in CPACE originations. The firm’s credit platform includes CPACE, bridge, mezzanine, and construction lending, offering various capital solutions.