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In every central business district across the U.S., leaders are pushing for new ideas to reimagine vacant office buildings. Most often, the chatter is to convert these properties into apartments or condos or undergo a significant renovation to appeal to new tenants.

– PACE Loan Group closed a $10.6 million C-PACE loan for the new construction of a Home2 Suites hotel located in Pittsburg, California, which is in the Northeast Bay Area. In addition to the PACE loan, the property received a $11 million construction loan, $3 million in mezzanine debt, and a $600k grant from the City of Pittsburgh.

PACE Loan Group provided $3 million in C-PACE financing for a dual-branded hotel property scheduled to operate as a TownePlace Suites and Fairfield Inn & Suites by Marriott at 5912 Howard Boulevard in Columbus, Nebraska. A regional bank provided a $10.5M first mortgage.

PACE Loan Group, which provides property-assessed clean energy financing to commercial properties, returns to the Fast 50 list at No. 6 this year. The Minneapolis-based company reported 2023 revenue topping $20.3 million — a 221.32% increase from 2021.

PLG provided $3.27 million in C-PACE financing for Samaritan Center, a 444,475 sq. ft., three-building business complex in Detroit, Michigan. The loan covers 74% of the project’s $3.54 million renovation, which will update the main building, and reduce annual repair expenses and utility costs.

The Federal Reserve’s decision to begin aggressively hiking the federal funds rate in 2022 threw the commercial real estate market into turmoil. Property investors found it difficult to refinance much cheaper short-term loans that were often used to renovate or develop properties.

After completing three C-PACE financings in the last month, PACE Loan Group leads Michigan with 21 closed C-PACE loans in the state, the most of any other C-PACE lender. Those 21 projects are located from Detroit to Traverse City and cover hospitality, health, self-storage, senior housing, and multifamily projects.

In a commercial real estate lending environment that has often proved challenging for borrowers over the past couple of years, an indisputable bright spot has been C-PACE (Commercial Property Assessed Clean Energy) financing.

Wayne County has reached a significant milestone by surpassing $100 million in PACE financing for energy-efficient projects. This achievement highlights Wayne County’s effective use of the PACE program to attract private capital for eco-friendly building initiatives and economic development.

PLG COO Bali Kumar was reelected for the fifth consecutive year onto the Board of Directors for PACENation, a national organization that promotes education, legislation, and development for PACE financing, which is long-term, non-recourse, fixed-rate financing for renewable and energy efficiency projects.

The decline in interest rates is expected to start with a decrease of 25bps or 50bps, causing the 10-year treasury rate to fall. That has two positive knock-on effects. First. C-PACE quotes can have lower floor rates and lower all-in spreads. Second, as rates decline, deals and DSCRs begin to pencil again!

PLG provided a $2.6M C-PACE loan for Howell Health Hub, an 86,300 sq. ft., two-story modern medical office building in Howell, MI. The C-PACE proceeds supplemented the project’s total capital stack of $10.26 million, which includes $4.16 million in equity and a $3.5 million line of credit for tenant improvements.

PACE Loan Group has provided a $1.5 million C-PACE loan for a 475-unit self-storage project under construction in Romulus. The 25-year loan, which closed out the $9 million capital stack, will be used for the building envelope, Energy Star windows, high-efficiency HVAC, plumbing and LED lighting.

Word is several originators are gearing up to package CPACE assessments via real estate mortgage investment conduits after the agency confirmed that such securitizations are eligible in a recent private letter to a client of law firm Dechert.

PACE is the newest and fastest growing form of public-private partnership that enables developers to efficiently capitalize their capital stacks. PACE is based on state law, and I was brought in to run the Michigan PACE program – bringing it from policy to a functional marketplace for capital.

The Minneapolis/St. Paul Business Journal today announces the honorees of our annual Fast 50 awards, celebrating the Twin Cities' fastest-growing, privately held companies by revenue growth.

Minneapolis-based PACE Loan Group is a first-time Best Places to Work honoree. This fast-growing company — it was a Business Journal Fast 50 honoree in 2023 — has career opportunities listed on its website.

On July 31, 2024, PACE Loan Group (PLG) closed a $10.6 million C-PACE loan with 1440 FRONT LLC to complete the capital stack for the new construction of a 114-unit multifamily property in the Fishtown neighborhood of Philadelphia resulting from combining six vacant city lots.

In the run-up to the Connect Texas Multifamily event in Dallas on August 20th, we reached out to several conference participants to get their pulse on various commercial real estate issues. We caught up with Loren Biller from PACE Loan Group and asked him about C-PACE financing.

Robbie Pinkas, senior vice president at PACE Loan Group, said that his energy-efficiency-focused lending business gives him exposure to a broad range of projects across the country. In other fast-growing markets, infrastructure investments are being made to support the growing population.

New state guidance could energize stalled program for eco-friendly upgrades of aging buildings. “We needed a government quarterback that was passionate about creating a functional program for the city,” Pinkas said.

The Vista Prairie at Eagle Point Senior Living Community is moving forward thanks to financing sources that include tax-exempt loans and C-PACE, a public-private structure that rolls loan payments for energy efficiency upgrades and clean energy improvements into property taxes through a special assessment.

It may have taken more than a decade, but after starting out as a niche financing vehicle to create more energy-efficient and resilient buildings, the commercial property assessed clean energy (C-PACE) program has arguably achieved mainstream acceptance.

PACE Loan Group closed a $7.1 million PACE Loan on a 134-unit new construction, market-rate senior living facility in St. Francis, Minn. The 20-year loan complements a $30 million qualified tax-exempt loan on the project using Series 2023A Bonds with Sunrise Bank as the senior lender.

PACE Loan Group closed a $17.7 million PACE loan for the completion of a 136-key Hyatt House-branded hotel and attached medical rehab annex in West Chester, OH, located 22 miles north of Cincinnati and within a mile of four major hospital systems.

PACENation recognized the exceptional achievements of individuals and companies in the 2024 PACESetter Awards and PACE Champions of the Year at their annual Summit. Two of PLG’s experts and one transaction were recognized, building upon the company’s frequent recognition of both people and projects in the C-PACE industry.

“Everybody has a home in this movement.” Bali Kumar, a clean energy innovator, is carving out his space in the growing clean energy financing sector — making sustainability projects a reality and inspiring and educating others along his journey.

For 26 years, the Minneapolis/St. Paul Business Journal has recognized those organizations putting a premium on their employees with our Best Places to Work awards. And today we begin revealing our 2024 honorees, one of which is PACE Loan Group.

Minnesota laws passed this year created accelerated updates to the residential energy code and ended fluorescent light bulb sales in the state. Lawmakers passed just a handful of clean-energy-related bills this session, a sharp contrast to last year, when they delivered dozens of laws to deal with climate change.

The St. James Social, located at 200 Rittenhouse Avenue in historic downtown Bayfield was built in 1884. Bermel took extra care to ensure the preservation and historic integrity by working with the National Park Service and the Wisconsin State Historic Preservation Office.

Current market trends point toward the growing use of C-PACE financing. Part of C-PACE financing’s surge in popularity has been driven by the current market conditions and challenges in traditional capital markets.

Commercial property-assessed clean energy financing (also known as C-PACE financing) continues to become more popular with commercial real estate owners who see it as a resource for lowering the cost of capital and enhancing energy efficiency.

If you've traveled down State Street in Traverse City this week, you may have very likely noticed a dramatic change. In the past five days a massive addition seemed to pop up out of nowhere.

PLG completed a $9.422 M C-PACE Loan on a 63,000 sq. ft. medical rehab facility in Bradenton, FL. The 30-year loan for the new construction project was part of a $37.85 million capital stack with a $28.43M senior construction loan provided by Amerant Bank.

The changes approved by MN legislature and included in the Omnibus bill slated to pass this weekend increase the financing term to 30 years and the LTV cap to 30 percent. The bill also eliminates an SIR requirement and adds water conservation and resiliency improvements to the list of eligible improvements.

Rafi highlights the unique features of C-PACE financing, such as long-term fixed-rate terms and self-amortization. He also discusses the early wins and successes of PACE Loan Group and the factors that differentiate them from their competitors.

With the latest round of $10 million, the hotel will have received $16.75 million in Commercial Property Assessed Clean Energy & Resilience (C-PACER) to support the renovation and upgrades to the 1970s-era hotel recently being used as transitional housing into a Class A hotel.

Amid increased market volatility and rising interest rates, commercial real estate investors and owners are looking for alternative and flexible strategies to gain access to capital. One option people have been increasingly exploring is C-PACE.

PACE is effectively solving a hole in the capital stack. In today’s market when banks and mortgage lenders have tightened up significantly, typically lending less and providing less leverage, that creates a pretty large equity check requirement that is significantly larger than it was two years ago.

PACE Loan Group (PLG) continues its growth across the country, opening a New York City office this week and adding Loren Biller, an experienced originator as a Senior Vice President. Biller will work alongside Robbie Pinkas, SVP, who joined PLG in April.

I’m pleased that Minnesota is considering changes that move the C-PACE legislation from version 2.0 to version 3.0, providing more commercial property owners with an effective, efficient way to finance more sustainable buildings.

“It allows property owners to borrow capital to rehabilitate, renovate and improve existing buildings, and build state-of-the-art new buildings that don’t have high energy costs and burdens,” Kumar said.

“The 30-year amortization and the 30% loan-to-value would significantly increase volume,” Golberstein said. “You’re just going to see larger deals, in general. And we will see significantly more projects qualify for PACE than we currently do.”

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.

Robbie Pinkas, a C-PACE industry leader, joins PACE Loan Group today as Senior Vice President/Originator. He comes from North Bridge, a New York City-based PACE lender, where he spent three years directing transaction execution and program authority relationships.

The Boardwalk, a two-phase short-term rental condominium under construction in Traverse City, Michigan, received nearly $4 million in C-PACE financing through PLG. 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.

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.

Hempel Real Estate has secured a handful of new leases at LaSalle Plaza in downtown Minneapolis since it acquired the 30-story office tower last summer. PACE Loan Group, a commercial real estate lender, will occupy about 4,000 square feet after its lease is signed. The company plans to move in by March.

PLG arranged a 4.45 million PACE loan secured by a special assessment for Lawson’s Landing, which will support the nearly 70-year-old campground’s new wastewater treatment, solar energy, and energy and water efficiency improvements.

The spike in interest rates and the consequent disruption throughout real estate capital markets over the last 18 months is generating newfound interest in commercial property assessed clean energy (C-PACE) financing.

As part of its growth plan and to serve more property owners with C-PACE financing, PACE Loan Group has opened its third office in San Diego. Ina Montejo, business development associate, and Jacob Roth, VP of underwriting, work from that office and will support the company’s growth on the West Coast.

C-PACE’s compelling story right now is the ability to pay off variable construction debt if that construction exceeded building code. This financing not only injects much-needed liquidity into projects but also rewards sponsors for building sustainably and is generally available to properties that were constructed, or gut renovated within a three-year lookback period

The first MNCIFA Board Meeting took place on Wednesday, November 15th. During the meeting Bali Kumar was elected Board Chair and Tessa Haagenson was elected Vice Chair.

Hempel Real Estate acquired LaSalle Plaza, a 30-story office building in downtown Minneapolis, from the prior owner’s lender in June, and finalized the financing package with a $3.5 million C-PACE loan arranged by PACE Loan Group.

Balancing the financial bottom line while building above code can often feel like an uphill battle. However, a financial tool – retroactive C-PACE financing -- is making waves in the CRE finance industry, offering a compelling solution to these challenges.

One bright spot in an otherwise dreary capital markets environment has been the continued emergence and success of PACE (Property Assessed Clean Energy) financing, a surprisingly adaptable funding source that has proved to be effective in varied market conditions.

In 2020, PACE Loan Group reported revenue of slightly over $3 million. By 2022, that number skyrocketed to nearly $11.5 million, representing a growth rate of 277.58%. It is a first-time Fast 50 honoree, debuting on The List at No. 3.

Among the options gaining attention from borrowers in the current market is C-PACE (Commercial Property Assessed Clean Energy) financing, and Matthew McCormack, SVP of Originations at PACE Loan Group (PLG), will discuss how it can fulfill their needs. Here, McCormack sets the stage for Tuesday’s conversation.

In the ever-evolving landscape of commercial real estate, two pressing concerns loom large: managing interest rate exposure and meeting the market’s demand for sustainability. However, a financial tool – retroactive Commercial Property-Assessed Clean Energy (C-PACE) financing -- is making waves in the CRE finance industry.

Over the past 18 months, Ledding has helped PLG underwrite deals that allow the company to keep lending and helping get projects done instead of sitting on the sidelines. These are just a few reasons we chose Angela Ledding as one of the Chicago-Midwest Connect CRE’s 2023 Women in Real Estate Award winners.

Reset Hotel, a new hotel coming to Twentynine Palms, a Palm Springs exurb adjacent to the North Entrance of Joshua Tree National Park, has started construction with $11.2 million in C-PACE financing from PACE Loan Group.

Governor Tim Walz and Lieutenant Governor Peggy Flanagan today announced the following appointments to the Minnesota Climate Innovation Finance Authority. PLG's Bali Kumar - Member with Expertise in Investment Fund Management or Financing and Deploying Clean Energy Technologies.

Parag Vipani, an experienced capital markets professional, joined PACE Loan Group as vice president, where he will be responsible for originating, underwriting, and closing on PLG’s pipeline of C-PACE financing transactions.

“Financing Deals in an Uncertain Climate” is the title of a panel at Wednesday’s Connect Orange County event, and PACE (Property Assessed Cleaning Energy) financing has proven to be a means of doing just that. Among the experts who will address this topic on Sept. 27 is Bali Kumar, COO of PACE Loan Group. Connect CRE spoke with Kumar to set the stage for the upcoming conversation. Here’s what he told us:

Continued sluggishness in the lending market is setting the stage for an increase in Property Assessed Clean Energy financing. The outcome, market professionals believe, is that C-PACE capital will come to represent ever-larger portions of the debt on existing properties and, especially, new projects.

PACE Loan Group’s Senior Vice President Matthew McCormack arranged a $6.2 million PACE loan that was part of $32.8 million refinancing of the Northbrook Renaissance in Northbrook, IL.

With traditional lenders reluctant to fund new real estate projects, developers are seeking other financing sources. An increasingly popular option is Commercial Property Assessed Clean Energy, or C-PACE, financing.

PACE Loan Group was recognized today as one of the Fast 50 growth companies in the Twin Cities by the Minneapolis-St. Paul Business Journal. This recognition comes from three years of an average of 89% growth per year through the company’s focus on providing C-PACE financing to commercial real estate property owners.

Among our panel of experts will be Matthew McCormack, SVP, originations with PACE Loan Group (PLG), who will provide insights into the benefits of PACE (Property Assessed Clean Energy) and C-PACE (Commercial Property Assessed Clean Energy) financing. We spoke with McCormack to set the stage; his responses appear below.

PACE Loan Group closed a $13.82 million C-PACE loan for a 151-room conversion from a hotel into workforce housing in Kissimmee, FL. The borrower plans to complete the renovation and open the low-rise/garden apartment complex at 2950 Reedy Creek Blvd. in May 2024.

PACE Loan Group (PLG), a national leader in Commercial Property Assessed Clean Energy (C-PACE) financing, closed a $13.82 million C-PACE loan for a 151-room conversion from a hotel into attainable, workforce housing in Kissimmee, Osceola County, Florida.

PACE Loan Group, a national leader in Commercial Property Assessed Clean Energy & Resilience (C-PACER) financing, closed a $5.5 million package for the Aviator Hotel, the largest of its kind in Alaska.

PACE Loan Group (PLG), an industry leader in the emerging financing tool, C-PACE (Commercial Property Assessed Clean Energy), had two of its leaders recognized at the annual PACENation Summit, June 6-7, 2023, in New York City.

Blossom Hotel Houston near the Texas Medical Center has secured a $22.5 million commercial property assessed clean energy loan, commonly called a C-PACE loan, to cover the cost of previously installed energy-conservation systems.