The Key Count Fell Nineteen Percent, The Basis Quadrupled

$1,410,112 per key versus $300,000 per key at acquisition — a 4.70x move. Total basis is 3.80x the 2022 purchase price. Key count cut from 110 to 89, down 21 keys or 19.1%. C-PACE is 58.6% of the entire recapitalization.

Two numbers move in opposite directions here, and that is the whole story. The room count went down 19%. The basis per room went up 370%.

That is a deliberate trade: fewer, larger, higher-rate keys. It only works if achieved rate more than covers the lost room-nights, and at $1.41M a key the required ADR is not a Miami Beach number — it is a Faena-adjacent luxury number that the market has to validate in 2027.

The financing is the more transferable signal. C-PACE is the single largest piece of this stack at $44M, larger than the bank construction loan. Assessment financing has moved from a gap-filler to the anchor of a luxury hospitality recapitalization — long amortization, no balloon, and it sits senior. Add historic tax credit equity from PNC and the sponsors have replaced conventional equity with statutory capital.

Four sources, two of them new relationships, on an asset mid-construction. That is what the market charges for delivery risk right now.

Implications. When C-PACE is 59% of a recapitalization, the sponsor has structured around an equity market that would not price the deal. That is efficient and it is also a constraint: assessment financing is senior, it does not go away, and it lowers the strike price at which the project has to perform.

Uncertainty: this is a financing, not a transaction — there is no buyer and no seller. The Marcus & Millichap release names only the property's ownership group; the Assouline and Busch attribution comes from 2022 secondary reporting. No RevPAR or occupancy exists — the asset is pre-opening.