3 W. Main St, Suite 103
Irvington, NY 10533
This case study highlights an execution using X-Caliber’s proprietary Rural PACE-X product, which combines senior-secured conventional financing with Commercial Property Assessed Clean Energy (C-PACE), a low-cost, long-term financing structure repaid via a non-ad valorem special assessment.
The Property
The boutique hotel consists of 51 guest rooms, including three suites in an original adobe-built home, and a 150-seat restaurant and bar open to hotel guests, locals, and travelers.
The Opportunity
The redevelopment focused on a full renovation of guest rooms, the restaurant, and the bar. Additional amenities include a pool, hot tub, cold plunge, sauna, fire pits, a star gazing deck, and an outdoor event venue. The hotel will also feature an indoor art gallery and event space supported by an artist-in-residence program led by The Paseo Project, a nonprofit organization based in Taos County, New Mexico.
The Solution
X-Caliber affiliate CastleGreen Finance and an affiliate of X-Caliber Rural Capital provided a combined $14.1MM financing through the Rural PACE-X program. This proprietary product offers financing for construction projects in micro-rural areas, delivering funds for construction-through-stabilization for up to five years. The C-PACE portion of the funds remains long-term but can be prepaid at the borrower’s discretion.
X-Caliber Rural Capital affiliate, XRL ALC, LLC, delivered $8.8MM of conventional senior-secured financing. CastleGreen Finance, LLC provided $5.3MM of Commercial Property Assessed Clean Energy (C-PACE) financing. C-PACE financing was utilized to refinance retroactive energy efficiency and water conservation improvements during renovations that took place over the past three years.
Borrower Benefits
The project is designed to realize lifetime energy efficiency and water cost savings of nearly $1MM.
For the Environment
On March 14, 2017, the Town Council of Taos passed a demolition resolution for the former Indian Hills Inn. Officials cited over 200 code and fire violations and labeled the property “to be ruined, damaged and dilapidated to the extent that the property is a menace to the public comfort, health, and safety”. After acquiring the property in 2019, the borrower spent over $250,000 to remediate asbestos, mold, and other hazardous materials.
The project incorporates significant energy and water conservation upgrades, including building envelope upgrades (wall, roof, and windows), HVAC system improvements, domestic hot water heater upgrades, interior and exterior LED lighting, and low-flow water fixtures.
Compared to baseline projections, these improvements are:
Designed to reduce CO2 emissions by 109 MT/year
X-Caliber
Designed to reduce electricity use by 760,969 kWh/year through the installation of LED lighting, windows, HVAC, and other energy-efficient upgrades
X-Caliber
Designed to reduce an estimated 412,995 gallons of water annually through low-flow fixtures
X-CaliberFor the Community
This case study demonstrates how innovative rural development transformed a building condemned in 2017 to a vibrant, safe, productive, boutique hotel grounded in Taos’ cultural history. The project will create 50 new jobs and support the local arts scene through an Artist-in-Residence program that highlights regional talent. Its unique design pays tribute to cultural heritage, encourages tourism, and provides community gathering spaces. By inviting guests to explore local businesses, the hotel promotes broader economic growth and environmental sustainability.
The Rural PACE-X financing solution underscores how tailored financial products can fuel impactful development in underserved rural regions, aligning economic expansion with sustainable practices.
