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.
Concord Summit Capital has arranged $16.5 million in C-PACE (Commercial Property Assessed Clean Energy) construction financing for a new 105‑room Marriott Tribute Hotel in Santa Barbara, California. The financing was sourced by a Concord Summit representative on behalf of the borrower, Stratus Development Partners, a full-service developer based in Newport Beach. Construction is set to begin this month, with completion scheduled in 2027 and an expected build period of around two years.
The C-PACE financing makes up part of the project’s construction capital stack and is expected to lower the overall cost of capital compared with traditional sources. C-PACE programs are typically used to fund energy-efficient and resilience-focused building improvements; in this case, lenders showed strong interest because of the project’s oceanfront location and the sponsor’s development track record. The capital is intended to support construction costs tied to delivering a full-service boutique hotel under the Tribute Portfolio brand.
The hotel will offer 105 guest rooms and include a rooftop amenity space that will overlook the Pacific Ocean. The site is in Santa Barbara’s East Beach/Funk Zone neighborhood, an area known for wineries, breweries, art galleries and dining. Groundbreaking is scheduled to start this month and the developer anticipates roughly a two-year construction period, targeting an opening in 2027.
Stratus Development Partners is described as a full-service developer with more than 60 years of combined institutional real estate experience and a development record exceeding $1.5 billion. The firm has undertaken projects in markets with high barriers to entry, which helped attract interest from C-PACE lenders for this Santa Barbara hotel. The financing arranger noted that the sponsor’s experience and the site’s market profile were key factors in lender appetite.
The hotel will join the Tribute Portfolio, a Marriott brand positioned around independent, boutique hotels that emphasize unique design, local connections and vibrant social spaces. Tribute properties are typically characterized by bold design choices, art installations and a strong sense of place—features the developer plans to incorporate into the new Santa Barbara property.
The new development follows other recent hotel activity in the region, including a large-scale renovation at a well-known oceanfront resort that refreshed guest rooms, dining and pool areas, and the addition of a separate boutique hotel in nearby Solvang joining the Tribute Portfolio family. These moves reflect ongoing investment in Santa Barbara lodging and hospitality offerings.
The use of C-PACE tools for construction financing signals growing acceptance of assessment-backed capital in hospitality development, particularly for projects in prime coastal locations where lenders look for experienced sponsors and strong market fundamentals. For the local market, the new Tribute hotel will add to room supply while aiming to strengthen the neighborhood’s visitor offerings, especially with its rooftop amenity and proximity to East Beach and the Funk Zone.
Construction will proceed under Stratus Development Partners with an eye toward a 2027 opening. Project stakeholders plan to combine conventional construction financing with the arranged C-PACE funding to manage overall costs. Observers will watch for construction milestones and the final design that will define how the hotel interprets the Tribute brand in a coastal Santa Barbara setting.
Recent region-wide hospitality activity includes full-property renovations and brand affiliations among boutique and full-service hotels. Those developments provide context for why a new Tribute Portfolio property in Santa Barbara may be seen as complementary to a growing set of upscale and lifestyle lodging options along the coast.
A: $16.5 million was arranged using the C-PACE program, tailored to commercial projects that incorporate energy- and resilience-related improvements.
A: Stratus Development Partners, a Newport Beach-based full-service developer, is the project sponsor and borrower.
A: The site is in Santa Barbara’s East Beach/Funk Zone neighborhood, within walking distance to local dining, galleries and waterfront access.
A: Construction is slated to begin this month, with completion and opening targeted for 2027. The build is expected to take about two years.
A: The property will operate as a Marriott Tribute Portfolio hotel, a lifestyle-focused brand emphasizing unique design and community ties.
| Feature | Detail |
|---|---|
| Loan amount | $16.5 million |
| Financing type | C-PACE construction financing |
| Borrower / Developer | Stratus Development Partners (Newport Beach) |
| Rooms | 105 guest rooms |
| Signature amenity | Rooftop amenity space with Pacific Ocean views |
| Location | East Beach / Funk Zone, Santa Barbara, CA |
| Construction start | Scheduled to begin this month |
| Expected completion | 2027 (approx. two-year build) |
| Sponsor experience | 60+ years combined experience; $1.5B+ development track record |
| Benefit of C-PACE | Helps reduce overall cost of capital and attracts lender interest for energy/resilience measures |
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