PLG brings $4 million in C-PACE financing to The Boardwalk short-term rental condos in Traverse City, Michigan

Minneapolis, Minnesota (Feb. 21, 2024) – The Boardwalk, a two-phase short-term rental condominium under construction in Traverse City, Michigan, received nearly $4 million in C-PACE financing through PACE Loan Group. The first phase received $1.7 million in early 2023 and has an expected completion date in March 2024; the second phase received $1.8 million and begins construction this month with an expected completion date of Q2 2024. The project was built using modular construction, which reduces construction time by nearly half compared to traditional methods. The senior lender for both C-PACE loans was a local credit union.

“The C-PACE financing enabled the project to get credit for operational efficiencies built into the original construction plan while right-sizing the capital stack,” said Bali Kumar, chief operating officer, PACE Loan Group. “Given the collaboration from Grand Traverse County and Lean & Green Michigan, the borrower was able to keep this project on time and on budget and get these units ready for rent in the upcoming tourist season.”

Phase I consists of 42 total units, which includes five commercial/retail spaces on the first floor. The second phase is a five-story, short-term residential condominium building with 48 rentable units without first-floor retail. The PACE proceeds will be used to finance energy conservation and renewable energy measures, including increased building insulation, ENERGY STAR windows, high efficiency HVAC and plumbing/DHW fixtures, and LED lighting. The renewable and energy conservation measures are expected to save $120,140 annually in the payback period of 13.5 years.

Traverse City, a popular Lake Michigan tourist destination due to its many sandy beaches, vineyards, and bike trails, attracts nearly 4.4 million visitors annually. The Boardwalk is the fourth PACE project in Grand Traverse County, and the 76th in the state of Michigan. The PACE program is administered in a private/public partnership through Lean and Green Michigan.

“Grand Traverse County continues to leverage PACE to ensure its continued commitment to sustainable economic development.  The Boardwalk is a great demonstration of new development incorporating efficient and sustainable practice into its design,” said Todd M. Williams, President and General Counsel of Lean & Green Michigan.  “PACE Loan Group’s team has been key in bringing this project to fruition, and we appreciate their continued investment into the future of Grand Traverse County and Michigan.”

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 Lean & Green Michigan

Lean & Green Michigan helps commercial, industrial, multifamily, nonprofit, and agricultural property owners finance energy efficiency, water conservation, and renewable energy projects that are profitable for all parties – property owners, contractors, and local governments.