Imperial Ridge Real Estate Capital Delivers $6.9 Million in Combination of C-PACE and Debt Financing for Houston Hotel-to-Housing Redevelopment
Capital stack solution to transform aging hotel into 137-unit multifamily asset with $13.4M in projected energy savings
HOUSTON, July 15, 2025 /PRNewswire/ -- Imperial Ridge Real Estate Capital ("Imperial Ridge"), a national private commercial real estate lender based in Colorado, and Amalgamated Bank today announced they have partnered to provided $4 million in Commercial Property Assessed Clean Energy (C-PACE) financing. In addition to the C-PACE financing Imperial Ridge provided $2.9 million in senior construction financing to support the adaptive reuse of an aging unflagged hotel into much-needed workforce housing at 702 N. Sam Houston Parkway E in Houston. The property is located near George Bush Intercontinental Airport, an area experiencing strong demand for more attainable housing.
The 74,091-square-foot building, originally built in 1983 as a Holiday Inn, is undergoing a full renovation by The 702 LLC, which purchased the property in 2024. The team is in the process of converting the former 250-key hotel, which was suffering from deferred maintenance issues, into a mix of 137 studio and one-bedroom apartments.
In addition to the C-PACE financing, Imperial Ridge provided $2.9 million in senior construction financing, delivering the full debt stack needed to complete the $9.2 million redevelopment. The Texas PACE Authority (TX-PACE) administered the assessment, as developers increasingly turn to innovative financing tools to make sustainability-focused projects viable across states.
Imperial Ridge's $4 million C-PACE assessment is repaid over 25 years, and supports comprehensive energy upgrades to the property, including new HVAC systems, energy-efficient lighting, window replacements, and the installation of a rooftop solar array. These improvements are expected to generate $13.4 million in utility savings over the life of the project, according to a third-party energy report by Reihl Engineering.
"In today's capital environment, it takes creative, aligned financing to bring projects like this across the finish line," said Mark Boyer, CEO of Imperial Ridge Real Estate Capital. "Our ability to deploy both primary debt and C-PACE financing allows us to design tailored, performance-oriented capital stacks. For The 702, that meant combining C-PACE with senior construction financing to create a flexible and efficient structure that supports long-term building performance while optimizing returns for both owners and investors."
C-PACE is a type of long-term, fixed-rate, non-recourse financing that allows property owners to fund up to 100% of eligible energy efficiency and renewable energy upgrades, without relying on traditional debt, equity, or reserves. The 25-year C-PACE assessment for The 702 remains with the property through any sale, potentially improving exit returns for the seller and lowering capital requirements for the buyer.
According to Rice University, the greater Houston area ranks as one of the worst for affordable housing supply while the need for more workforce housing options grows. The 702 aims to directly address this gap with high-efficiency units offered at 25% below market rates, including utilities.
"We're excited to be a part of this critical development which adds much-needed workforce housing in the city of Houston," Boyer added. "This is a great example of how underutilized assets can be repositioned through thoughtful financing and sustainable design to meet the evolving needs of growing communities."
Work is already underway on the renovation, with two floors completed and additional renovation in progress. Leasing is expected to begin in the 4th quarter.
To learn more about Imperial Ridge's financing capabilities, please visit: www.imperialridgecap.com/c-pace/.
Media Contact:
Kara Powell
720-982-5204
kara@sidecarpr.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/imperial-ridge-real-estate-capital-delivers-6-9-million-in-combination-of-c-pace-and-debt-financing-for-houston-hotel-to-housing-redevelopment-302505917.html
SOURCE Imperial Ridge