Ready Capital, which assumed full ownership of The Ritz-Carlton Portland mixed-use project in July 2025 after a foreclosure, recently secured a $141 million Commercial Property Assessed Clean Energy (C-PACE) loan for the recapitalisation of the 35-storey tower, as learned by Commercial Observer.
Peachtree Group arranged this C-PACE loan for the Block 216 Tower development, completed in 2023. The property comprises a 251-room hotel, 131 condominiums, and 159,000 square feet of office space. Construction of The Ritz-Carlton Portland, the Marriott brand's first hotel in the Pacific Northwest, began in 2019 but experienced delays due to the COVID-19 pandemic and the resulting economic difficulties for the city.
Successful Sales and Market Revival
Jared Schlosser, Head of Loan Origination at Peachtree Group, expressed positivity regarding the development. He highlighted that the property's condominiums have been selling at a good pace and the hotel, as one of the newest accommodation offerings in the Portland area, is well-positioned for success. Schlosser remarked that it is the most appealing hotel in the region and this part of Portland is undergoing revitalisation. He sees more tailwinds than headwinds for Portland in the future.
Schlosser added that C-PACE debt was favourable for recapitalisation because the building was developed as a new construction under stringent building codes, and a large portion of the project was eligible for retrospective financing. He underscored that this transaction represents Peachtree Group's second-largest loan.
Background of Ownership
Ready Capital laid the groundwork for its ownership of The Ritz-Carlton Portland when it acquired a previous construction loan for the development, valued at over $500 million, in 2022 as part of a merger with Mosaic Real Estate Investors. The lender manages the property in partnership with Lincoln Property Company. Ready Capital did not immediately respond to a request for comment.
