Driftwood secures $257M for Space Coast resort

MIAMI — Driftwood Capital has secured $207 million in senior construction financing and Commercial Property Assessed Clean Energy (C-PACE) financing for the 502-key Westin Cocoa Beach Resort & Spa on Florida’s Space Coast. The company also secured a $50 million credit facility for a total of $257 million in financing for the property.

Driftwood broke ground in September on the $420 million, 502-key resort project, which is expected to open in 2027. At the same time, the company announced the close of its $330 million Driftwood Florida Space Coast Portfolio fund, with four hotels expected to represent approximately 11% of all the hotel rooms in the market and 62% of the area’s beachfront hotel inventory. That market dominance is also supposed to generate north of 20% IRR.

The financing is the largest C-PACE deal ever in Florida and the third largest in the U.S. hospitality sector. 

Details of the deal

City National Bank of Florida provided $70 million in construction financing at a competitive interest rate, with Bayview PACE, a division of Coral Gables, Florida-based Silver Hill Funding LLC, providing $137 million in C-PACE financing. Driftwood also secured a $50 million credit facility from Coral Gables, Florida-based Amerant Bank at the holding company/fund level. 

Hotel Investment Today spoke to Carlos Rodriguez Sr., founder chairman and CEO of Driftwood Capital, last month about the outlook for 2025. He said construction financing has been a challenge to get except in very specific circumstances (like high-barrier-to-entry markets), but said that C-PACE has been helping fill some of that gap.

“C-PACE financing has been interesting in that it’s a new development because of some changes in rules and things. We find that C-PACE financing will become a major player once banks start feeling more comfortable with it,” he said. “As that evolves… you will see C-PACE financing playing a bigger and bigger role and I’m seeing that as a trend. That’s going to help increase the rate of development to some degree. Not totally, but to some degree.”

Driftwood said the property will fill a 160-mile gap of Marriott beachfront resorts along the Atlantic coast between Daytona Beach and Hutchinson Island. It will feature 11 F&B venues, multiple retail outlets and an 800-space multistory parking garage.