The Washington completes $41M capital stack with $8M in C-PACE from PACE Loan Group

Minneapolis, Minnesota (March 22, 2024) – PACE Loan Group brought $8 million in C-PACE financing to The Washington, a four-story, three-building luxury multifamily property with 200 units in Eau Claire, WI., filling out the $41 million capital stack’s $20 million in debt and $13 million in equity for the Chicago-based sponsor.

The property, comprised of a closed managed care facility and two new ground-up new construction buildings, is set on 10 acres within two miles of the University of Wisconsin-Eau Claire and numerous healthcare facilities. The former managed care facility, which originally opened in 1937, will house amenities including a 2,000 sq. ft. commercial space on the first floor for a convenience store or local coffee shop, rooftop deck, a fitness center, club room, co-working space, media room, yoga studio, outdoor heated swimming pool, small dog park and dog washing station, and 53 multifamily units. One of the new buildings will consist of 87 units; the second new building will consist of 60 units. Both buildings will have fitness centers, club rooms, and media rooms, as well as underground parking spaces and surface spaces.

Construction of the project will begin in Q1 of 2024 and will be completed by September 1, 2025.

The PACE proceeds will be used to finance energy conservation and renewable energy measures. Qualifying projects include building envelope; ENERGY STAR windows; high efficiency HVAC, DHW, and water fixtures; and LED lighting. The renewable and energy conservation measures are expected to save $367,265 annually in the payback period of 21.8 years. The PACE program is managed by PACE Wisconsin, which authorizes municipalities and counties to work with private sector lenders to provide upfront financing to property owners for qualified projects. PACE Financing repayment is secured through a voluntary special charge repaid directly to the lender.

“PLG provided a key component to the senior debt stack. In a market where capital is hard to come by, we filled a gap when a bank participant could not be found,” said Matthew McCormack, senior vice president – Originations.

Eau Claire is the second fastest-growing city in Wisconsin after Madison.