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.
A $16.5 million Commercial Property Assessed Clean Energy (CPACE) construction loan has been arranged for a new 105-room Marriott Tribute hotel in Santa Barbara. The financing was placed on behalf of the borrower, a Newport Beach–based development firm, and construction is set to begin this month, with completion scheduled in 2027.
The C-PACE capital will support construction costs tied to the new Tribute Portfolio hotel, which will include a rooftop amenity space overlooking the Pacific Ocean. Using CPACE in the construction capital stack is reported to have meaningfully lowered the overall cost of capital, helping the developer lock in more favorable financing terms and support sustainability-related investments in the building.
Groundbreaking is slated for this month, and the project timeline is expected to take about two years, pointing to a 2027 completion. The hotel will offer 105 guest rooms and public spaces designed to fit within Santa Barbara’s coastal setting. The property will be located in the city’s East Beach/Funk Zone neighborhood, an area known for wineries, breweries, art galleries and dining.
The development is being led by a full-service developer based in Newport Beach with more than 60 years of combined institutional real estate experience and a development track record exceeding $1.5 billion. The sponsor has worked in high-barrier-to-entry markets and attracted notable lender interest because of that background and the project’s prime coastal location.
Lenders in the CPACE community showed significant interest in the project due to the site, the sponsor’s past work, and the economics created by adding CPACE to the capital stack. The financing structure reportedly reduced borrowing costs and enabled the developer to include energy- and efficiency-focused components that align with C-PACE program goals.
The hotel will join a brand built to reflect independent, boutique hotels with distinctive design and local connections. The Tribute concept emphasizes lively social spaces, artful design and ties to the neighborhood; this Santa Barbara location is positioned to add a luxury boutique option with ocean views and an active rooftop amenity for guests.
The project arrives amid other hospitality updates in the region. A nearby resort completed a large renovation that refreshed rooms, dining and pool areas, and another independent property in the general region joined the same hotel brand, expanding loyalty program access for travelers. These moves underscore ongoing investment in Santa Barbara’s visitor market and signal operators’ interest in refreshed, design-forward offerings.
The financing and project updates were shared alongside multiple industry event listings and webinars covering topics from multifamily and industrial markets to student housing and mixed-use development. These programs are aimed at development, investment and lending communities and often highlight market performance, capital availability and trends that affect construction activity.
With financing in place and construction due to begin, next steps include permitting, contractor mobilization and site work. The two-year build schedule points to opening in 2027, assuming standard permitting and construction timelines for a coastal hotel project of this scale.
The project secured CPACE construction financing totaling $16.5 million.
A Newport Beach–based full-service developer with more than 60 years of combined institutional experience and a development track record exceeding $1.5 billion is leading the project.
The hotel will offer 105 guest rooms.
Construction is scheduled to start this month and the hotel is expected to open in 2027, with the build period roughly two years.
The site is in the East Beach/Funk Zone neighborhood, a district known for arts, dining and tasting rooms.
Incorporating CPACE into the capital stack reduced overall borrowing costs and supported investment in energy and efficiency measures tied to the construction financing.
| Feature | Details |
|---|---|
| Loan amount | $16.5 million in CPACE construction financing |
| Financing type | Commercial Property Assessed Clean Energy (CPACE) |
| Developer / Borrower | Full-service developer based in Newport Beach with 60+ years combined experience and $1.5B+ in past development |
| Rooms | 105 guest rooms |
| Signature amenity | Rooftop amenity space overlooking the Pacific Ocean |
| Location | East Beach / Funk Zone, Santa Barbara, California |
| Construction start | This month (projected mobilization and site work) |
| Expected completion | 2027 (approximately two-year build) |
| Brand | Tribute Portfolio — boutique, design-forward hotels with local ties |
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