C-PACE Learning Center

According to research from the industry trade group PACENation, over 100 C-PACE loans of $10M or more have been originated since 2017. In just the past two years, all five of the largest C-PACE loans were originated, with each deal being over $150M.

C-PACE financing can act as a participant or A-Note, filling in the financing gap when a bank’s credit envelope restricts their lending limit. The bank’s last dollar of exposure would not change in this scenario, as they would still dictate the terms of the maximum Loan to Cost (LTC) / Loan to Value (LTV).

Three of PACE Loan Group’s originators attended last week’s Western States Commercial Real Estate Finance conference, which always provides a leading indicator for YE transaction volume and a first look toward the next year.

New York City's long-awaited new construction guidelines have finally been released, which include some exciting improvements to the city's previously stalled program. These new guidelines, such as no SIR requirement or term limit, bring about promising changes to NYC C-PACE.

As banks continue to scale down on lending amidst tighter LTC constraints and reduced deposits, owners and developers are turning towards nonbank lenders to get creative with their capital.

Are you struggling to secure sufficient funds for your projects as construction costs escalate and loans approach maturity?

As LL97 standards increase in NYC, PLG is here to help building owners complete their capital stacks. Contact PLG’s NYC-based originations team today to evaluate your LL97 building retrofit project.

C-PACE loans offer several unique benefits for commercial real estate owners looking to fund energy efficiency and renewable energy improvements.

As C-PACE financing continues to evolve and gain traction, one topic remains at the forefront of every transaction: Lender Consent.

New Jersey is not often thought of as a frontier in commercial real estate development, but thanks to pending legislative changes in the Garden State, PACE Loan Group (PLG) is ready to help developers forge a new path through C-PACE financing.

C-PACE is no longer thought of exclusively as a way to increase leverage. In today’s market of variable interest rates and hesitant lenders, we’re seeing C-PACE financing used as a replacement for what would otherwise be senior debt, among other scenarios.

At last night’s REjournals Award Ceremony, the Real People of PACE Loan Group were highlighted as CEO Rafi Golberstein and Managing Director – Underwriting Angela Ledding received three awards for their accomplishments and leadership in commercial real estate.

I have been in the PACE industry since 2018, having served as a program administrator, and now as a lender. My background is a mixture of management consulting, law, and commercial real estate – and PACE is at the intersection of all three!

To make NYC’s C-PACE program more user-friendly, NYSERDA and NYCEEC (the relevant authorities) must release new construction guidelines as soon as possible; the DOF amended the local ordinance to include these projects last November. Additionally, they must make it easier for retrofits to qualify.

Adaptive reuse is an important sustainability strategy and has become especially relevant given the post-pandemic office market. Record low occupancies and the ongoing housing shortage have created a unique opportunity for building owners to convert vacant office buildings into flourishing multifamily projects.

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.

With the current economic uncertainty and resulting pull back on mortgage lending, CRE developers and owners are seeking out alternative sources of financing for their properties. In these circumstances, C-PACE fills in those capital stack gaps, adding leverage and substituting more expansive mortgage debt.

Commercial Property Assessed Clean Energy (C-PACE) financing helps offset renovation and retrofit challenges by covering the cost of the building upgrades that breathe life back into an older building.

Facing current economic/market challenges of inflationary concerns with rising costs and rising rates caused mostly by supply chain issues have many CRE developers/sponsors in “unchartered territory.”

Owners, sponsors and developers are utilizing C-PACE financing’s efficient structure to enhance their project’s sustainability. However, as is typical with emerging financing mechanisms, mischaracterizations and misunderstandings about PACE and its implications remain.

Companies and developers at the nexus of commercial real estate (CRE) and sustainability are all asking the same question: “What does the Inflation Reduction Act (IRA) mean for me?” CRE developers are well-positioned to save thousands of dollars annually while also benefiting the environment through the IRA.

Commercial Real Estate Developers are looking for new ways to reduce the capital costs associated with construction and development. Many are turning to C-PACE (Commercial Property Assessed Clean Energy) financing, which reduces their cost of capital while providing energy efficiencies for their projects.

PACE financing is surprisingly flexible – and can fill financing gaps in any market condition. PACE gives developers a critical tool to add liquidity to any project.

As part of its mission to give back to local communities, PACE Loan Group supports the Camden Collective through leadership, volunteering, and donations. PLG is also supporting the Minneapolis nonprofit PICA by partaking in The Wish Tree, a PICA program that provides local companies with holiday wish lists of children from low-income families in Hennepin County.

PLG makes complicated financing structures easier for commercial real estate developers and owners, helping them capitalize on their renovations, new construction, or conversion projects.

The annual Las Vegas gathering of commercial real estate lenders and originators was held the first week of September. While attendance was down from a pre-COVID high of 2,500, those who attended were in deal-making mode.

While attending CREF-C in Miami, the PACE Loan Group team noted a general sense of optimism about interest rates and increased transaction volume in 2024. While PLG expects rates to remain high relative to the historical lows observed over the past several years, the continued strain on the overall refinancing market will provide significant opportunities for preferred equity players and alternative forms of financing, including C-PACE.