Marriott Tribute hotel at 926 Hutash secures construction financing

Stratus Development secures $16.5M CPACE construction loan for 105‑room Marriott Tribute hotel; construction to start this month, opening in two years

What happened — A 105‑room hotel planned for a tight parcel near Santa Barbara’s East Beach has secured $16.5 million in construction financing through a Commercial Property Assessed Clean Energy (CPACE) structure. The developer plans to begin construction this month and expects the property to open to the public in about two years.

Quick facts up front

• Project: Marriott Tribute Portfolio hotel with 105 rooms.
• Site: 926 Hutash Street, a parcel under one acre tucked between Highway 101 and the railroad tracks, near the South Milpas off‑ramp and within walking distance of the waterfront and nearby hospitality operations.
• Financing: $16.5 million CPACE construction financing arranged by a capital advisor and supported by a 30‑year loan provided by a group of lenders affiliated with a green capital platform.
• Schedule: Construction begins this month; opening is expected in approximately two years.

Details and context

The site at 926 Hutash Street occupies less than an acre and previously housed light industrial uses such as an auto‑repair shop, storage and a car wash. The development program calls for a boutique‑style hotel in the Tribute Portfolio, a brand positioned for independently styled properties with strong local character and social spaces.

Design plans call for a multi‑story building with rooftop amenities that take advantage of ocean views. Some reports describe the structure as three stories tall with rooftop features, while other descriptions list it as four storeys. Amenity lists vary across briefings but include a rooftop bar or rooftop amenity area, a coffee bar, a fitness centre and meeting space totaling roughly 3,000 square feet in some accounts.

The financing was put into place as a CPACE construction loan valued at $16.5 million and was sourced by an adviser working with the developer. The construction loan component includes a long‑term (30‑year) element provided by a group of lenders tied to a green capital lending platform. The CPACE portion is intended to fund energy and resiliency upgrades, including improvements to the building envelope, electrical and mechanical systems, seismic upgrades and other CPACE‑eligible components. Some coverage has mentioned a larger $30 million construction loan figure; however, the financing confirmed for the CPACE portion and related construction funding is $16.5 million.

Approvals and design process

The project went through an extended local review process that included more than a dozen meetings with the city’s design review body and received official approval in October 2019. The design review discussions focused on building form, scale and streetscape impacts on a compact site located between a major highway and the railroad corridor.

Developer, lender roles and capital stack

The development sponsor is a Newport Beach‑based firm with a history of hospitality and mixed‑use projects. A capital advisory firm arranged the CPACE financing and worked with the developer to include CPACE in the capital stack. The 30‑year loan portion was provided by a trio of lenders affiliated with a green capital platform, intended to lower the overall cost of capital while supporting energy‑efficient and seismic improvements.

Location and market notes

The site sits steps from established beachfront hospitality properties and an active arts, dining and tasting area known for galleries, breweries and wineries. The developer and capital adviser view that proximity as an asset for attracting leisure visitors and meeting attendees.

Reporting discrepancies and open items

• Building height: Sources differ on whether the final building will be three or four stories tall.
• Financing total: Most confirmed information points to a $16.5 million CPACE construction financing package; some reports have referenced a $30 million loan figure, which has not been reconciled with the confirmed CPACE amount.
• Amenity scope: Some accounts give a general rooftop amenity, while others provide a detailed list including a rooftop bar, coffee bar, fitness center and meeting space.

Construction is slated to begin immediately and the hotel is expected to welcome guests in roughly two years, subject to construction progress, permitting and market conditions.

What to watch next

• Permit and construction filings that confirm the final number of stories and the complete amenity program.
• Public records that clarify the overall construction budget and the full capital stack beyond the confirmed CPACE financing.
• Community and traffic mitigation measures given the constrained site between a highway and rail corridor.