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.
Key financing and project facts up front: A $16.5 million Commercial Property Assessed Clean Energy (C-PACE) construction loan has been arranged for a new 105-room Marriott Tribute hotel in Santa Barbara. The financing was sourced by a capital arranger on behalf of the project borrower, a Newport Beach–based full-service developer. Groundbreaking is scheduled to begin this month, with completion expected in 2027 — a build timeline reported to be roughly two years.
The capital infusion comes through a C-PACE facility, a financing tool tied to the property tax roll that is often used to support energy, resiliency and construction costs. Project advisers say adding C-PACE into the construction capital stack materially lowered the overall cost of capital for the development and attracted strong interest from lenders because of the site location and the sponsor’s experience.
The planned hotel will operate under the Tribute Portfolio flag, a brand positioned to showcase independent, boutique hotels with distinct design and strong local links. The Santa Barbara property will include 105 guest rooms and a rooftop amenity space with Pacific Ocean views, aimed at creating a vibrant social scene and connection to the neighborhood. The site is in Santa Barbara’s East Beach/Funk Zone district, an area known for wineries, breweries, art galleries and dining.
The borrower is identified as a full-service developer based in Newport Beach with more than 60 years of combined institutional real estate experience and a track record of over $1.5 billion in development. The sponsor’s portfolio and activity in high-barrier-to-entry markets were cited as key reasons for lender interest in the C-PACE facility.
Construction is slated to start this month, and project timelines released with the financing indicate a roughly two-year schedule that would lead to opening in 2027. The schedule aligns with a mid- to long-term development window for full-service boutique hotels in coastal resort markets.
Tribute Portfolio hotels emphasize independent character and design-driven public spaces. This Santa Barbara project is positioned as a luxury or upper-upscale offering aimed at elevating the city’s hospitality inventory with a property that leans into design, public programming and community ties. Amenities such as a rooftop amenity deck looking over the ocean are intended to attract both leisure travelers and local patrons.
C-PACE programs have become an attractive option for some hotel developments because they can finance energy, resiliency and hard construction costs while potentially lowering near-term financing costs. In this case, the inclusion of a C-PACE tranche reportedly reduced the overall cost of capital, while the sponsor’s experience and the project’s high-profile coastal location prompted notable lender interest.
Santa Barbara’s hospitality market has seen a variety of renovation and new-build projects in recent years, with major resorts also completing large-scale updates. The new Tribute-branded hotel will join a market that features both boutique and large resort operators, contributing to the city’s range of accommodations and event capacity.
With construction set to start this month, the development team will move into the site-preparation and vertical construction phases. Key milestones to watch include permitting completion, framing and structural work, and the buildout of rooftop and public-space amenities that will define the property’s guest experience.
C-PACE (Commercial Property Assessed Clean Energy) is a financing mechanism that attaches to a property tax assessment to fund energy, resiliency and construction-related costs. For this hotel project, C-PACE was used to lower the overall cost of capital and to finance eligible construction components.
$16.5 million in C-PACE construction financing was arranged for the hotel development.
A full-service development firm based in Newport Beach is the project borrower and developer. The firm has more than 60 years of combined institutional real estate experience and a development track record exceeding $1.5 billion.
Construction is scheduled to begin this month with completion targeted in 2027. The build is expected to take around two years.
The Marriott Tribute property will have 105 guest rooms and a rooftop amenity space overlooking the Pacific Ocean. The brand emphasizes unique design, local connections and lively public spaces.
The project site is reported to be in the East Beach/Funk Zone neighborhood, a district known for arts, dining and beverage makers.
Adding C-PACE to the capital stack reduced the overall cost of capital and was viewed favorably by lenders because of the project location and the sponsor’s development track record.
| Feature | Details |
|---|---|
| Financing type | C-PACE construction financing |
| Loan amount | $16.5 million |
| Developer | Full-service developer based in Newport Beach with 60+ years combined experience and $1.5B+ in developments |
| Brand | Marriott Tribute Portfolio (boutique/independent-style brand) |
| Rooms | 105 guest rooms |
| Amenities | Rooftop amenity space with Pacific Ocean views; design-driven public spaces |
| Location | East Beach / Funk Zone neighborhood, Santa Barbara, California |
| Construction start | This month |
| Expected completion | 2027 (approx. two-year build) |
| Market rationale | Enhances Santa Barbara hospitality offerings; leverages brand positioning and coastal location |
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