Milwaukee, WI— In a major move addressing the evolving needs of today’s commercial real estate market, PACE Equity,a Commercial Property Assessed Clean Energy (C-PACE) financing, has launched a new large-asset financing product designed to offer a more flexible, lower-cost alternative to traditional short-term capital solutions.
This innovative approach provides fixed-rate financing with deferred payments for up to four years and flexible prepayment options, positioning it as a compelling alternative to costly bridge and mezzanine loans—especially amid elevated interest rates and nearly $1 trillion in maturing CRE debt this year.
“With interest rates remaining high and nearly $1 trillion in commercial debt maturing in 2025, developers are increasingly being forced into costly short-term financing,” said Ethan Elser, Executive Vice President at PACE Equity. “We’ve identified a critical need for flexible, short-term C-PACE financing—and built a solution to meet it.”
$63.3 Million Financing for Luxury Utah Resort
The product has already proven its value in the field. PACE Equity recently closed a $63.3 million C-PACE financing for a high-end, mixed-use luxury resort in Utah. The development, centered around a Topgolf®-branded 18-hole golf course, also includes:
- A signature clubhouse and event venues
- An equestrian center with private trails
- Fine dining with an Argentinian culinary experience
- A rooftop deck and bar, spa, fitness center, and pool
- Exclusive community amenities for residents and guests.
PACE Equity’s financing covered 42% of the project’s total construction budget, underscoring the scalability and practical application of the large-asset C-PACE model.
“It’s flexible, it’s scalable, and it works for both projects already under construction and for new developments,” said Beau Engman, President and Founder of PACE Equity. “For sponsors facing a challenging capital markets environment, it opens doors that other financing can’t.”
Key Features of the Large-Asset C-PACE Product:
Flexible Prepayment: Prepay at par after five years, with minimal penalties starting as early as year three
Deferred Payments: Delay debt service for up to four years during construction or lease-up phases
Fixed-Rate, Lower Cost: Spreads starting in the high 200s over the 10-year U.S. Treasury
No Pressure to Refinance: Stable terms allow refinancing when market conditions are more favorable
A Growing Market for C-PACE
The new product launch comes as C-PACE continues to gain ground in the real estate capital stack. Now enabled in 40 U.S. states, C-PACE financing has reached nearly $10 billion in total volume as of the end of 2024. Developers across asset classes are increasingly turning to C-PACE as a mainstream funding strategy for construction, redevelopment, and energy-efficient improvements.
“This is not just a niche financing tool anymore,” Elser added. “It’s a powerful option for sponsors looking to manage risk, preserve equity, and move forward in a turbulent market.”
As economic uncertainty and tightening lending standards persist, PACE Equity’s large-asset C-PACE solution offers a timely and strategic advantage—helping developers navigate the capital markets with greater flexibility and lower financial stress.
