Pace Loan Group

FEbruary 26, 2024

On the 2024 conference circuit: C-PACE finds new fans

PLG staff

PLG’s originations team traveled across the country in January and February to attend three important industry events: MBA-CREF, NMHC, and ALIC. Collectively, we heard about the increasing cost of capital, less uncertainty from senior lenders, and an improving climate to bring C-PACE consideration into stalled, restructuring, or maturing deals.

From ALIS: 

As an accreditive financing solution, CPACE attracts interest among hospitality investors with an attractive cost of capital, and consequent ability to complete the capital stack considering the current capital markets environment. Sustainability benefits, operating efficiencies from reduced utilities, and the increasing availability of the program in 39 states have contributed to the popularity of CPACE among the investment community. - Parag Vipani

From NMHC: 

C-PACE is buzzing. Positive feedback for ground-up development, as many developers didn't realize that retroactive PACE could be used as a bridge to stabilization. All developers with idle projects are finally out there looking for financing. Many projects that recently received permits/licensing are now needing financing, making way for adding C-PACE into the capital stacks.

We also saw new support from debt funds, who see the opportunity to use C-PACE to blend down cost of capital as some regional banks pull back.  - Michael Jarmolowich

From the Mortgage Bankers' Association - Commercial Real Estate Finance: 

Mortgage brokers continue to express interest in a better understanding of how C-PACE can help replace pricier capital and help refinance maturing debt in their deals. Across the more than 40 meetings, brokers were looking for examples showing how creative C-PACE can be in reducing the cost of capital and making capital stacks more efficient.Ina Montejo

From the Mortgage Bankers' Association - Commercial Real Estate Finance: 

Many attendees were excited to hear about how retroactive PACE could bail out their deals that are experiencing loan maturities. Given the wave of upcoming maturities, we expect to continue to see interest in using C-PACE as rescue capital. - Bali Kumar

See if C-PACE works for your project. 

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