PACE Loan Group closes $35 million loan for 300,000 sq. ft. Gateway Studios & Production Services

Minneapolis, Minnesota (Dec. 30, 2024) – PACE Loan Group closed a $35 million C-PACE loan, Missouri’s largest PACE project financed to date, for a new, 300,000 sq. ft. state-of-the-art studio complex in Chesterfield, Missouri, authorized by the St. Louis County Clean Energy Development Board through the Missouri Energy Savings Program (MO-ESP.) The facility, comprised of five sound stages including the world’s largest, is geared towards the live events industry and will support rehearsal and production services for stadium and arena tours.

Arranged by Senior Vice President Robbie Pinkas, the loan was a good fit for C-PACE because the unique project didn’t fit traditional lenders’ criteria. “PACE worked for a variety of reasons on this deal: the unique asset class meant traditional construction financing options were expensive, and the sponsor valued the optionality of a non-recourse, long-term, and self-amortizing loan. It’s always nice when the business plan aligns with the product.”

Construction on the project, built on vacant land at 900 Spirit of St. Louis Blvd, began in August 2022 and will be completed in stages, with Studio 80 accepting bookings in Spring 2025. The 32-acre, $111 million Gateway Studios & Production Services development will include a 330,000-square-foot complex and employ more than 100 highly skilled music and film manufacturing and production professionals. The sound stages have 50'-80' clear heights plus loading docks and related support spaces, tailor-made for mid- to very-large live events rehearsal and production; they can also house film sets and special events. The property also includes a three-story office wing for Gateway Studios executives and staff.

The campus, located at 900 Spirit of St. Louis Boulevard, allows convenient logistical access for clients to build and create their productions at the crossroads of America before moving throughout the United States. Missouri competed with Georgia and Tennessee for the project, according to the St. Louis Economic Development Partnership (STL Partnership).

“Gateway Studios is destined to become the greatest place to start an artists’ tour, a place where innovation and ideas come together to make rock n’ roll history,” Trey Kerr, chief executive officer – Gateway Studios and Production Services. “PLG was a great partner in helping pull this financing package together.”

The 20-year assessment will be used to finance energy conservation measures, including: the building envelope, LED lighting, efficient HVAC, low-flow plumbing and high-efficiency water heating. The energy conservation measures are expected to save more than $50,000 annually over the course of the loan.

MO-ESP, St. Louis County’s PACE Program, provides a channel for local businesses to finance energy conservation and renewable energy investments at their property.  MO-ESP worked closely with PACE Loan Group to complete the energy assessment and to ensure that the loan met all of the requirements of the Missouri PACE Act necessary for C-PACE funding.

“The size and uniqueness of this project is a great reflection of PACE’s flexibility to fit what the commercial community needs to improve their buildings, save money, and create jobs,” said Josh Campbell, executive director, The Missouri Energy Initiative, the administrator for MO-ESP.

Media Contact:

Martha Nevanen

Martha@paceloangroup.com

651-492-5861

About PACE Loan Group
PACE Loan Group (PLG) is a national leader in the C-PACE marketplace, providing direct C-PACE financing to commercial property owners. PLG benefits from institutional support with capital from funds managed by AB CarVal, a subsidiary of Alliance Bernstein. The PLG team provides expertise up and down the capital stack, from origination and underwriting to loan servicing. To learn more about PLG, visit www.paceloangroup.com

About the Missouri Energy Savings Program : The Missouri Energy Savings Program (MO-ESP) offers a means to fund energy conservation and renewable energy investments by commercial building owners, including industrial, agriculture, multi-family, nonprofit, and public (governmental) properties, located in St. Louis County. PACE financing is entirely private capital, with no taxpayer funds involved. Repayment occurs through an annual assessment on the property. MO-ESP lenders offer 100% upfront financing for eligible improvements through fixed-rate loans for up to 20 years. A key requirement is that the benefits of the project must exceed the cost of the measures. For more information, email PACE@moenergy.org.

About Gateway Studios & Production Services (GSPS):

GSPS offers two state-of-the-art facilities: Gateway Studios and Gateway Production Services. Together, they provide integrated, turnkey solutions for live music touring, festivals, television, film, sporting and corporate events. Gateway Studios, a 320,000-square-foot rehearsal facility, is set to become the largest in the U.S., designed for large-scale production rehearsals and creative development. Gateway Production Services supports live events of all sizes, from one-offs to national tours, across any venue type. Combining the latest technology with skilled engineers, GSPS ensures every production reaches its full potential. Visit us online at: www.gsps.com.