MILWAUKEE, Wis., August 19, 2025 – PACE Equity, the nation’s leader in Commercial Property Assessed Clean Energy (C-PACE) financing, has introduced a new large-asset financing solution tailored for large C-PACE projects. The new product solves large-asset challenges by offering more competitive pricing and flexible prepayment options. This product addresses a funding need in the current CRE market to obtain low cost, short-term capital that can be refinanced with no exit cost when market conditions change.
Built on the proven C-PACE model, the large-asset solution serves as a lower cost alternative to bridge or mezzanine loans, with fixed rates, the ability to defer payments for up to four years, and the flexibility developers need to complete construction, stabilize assets, and execute business plans without immediate financial strain.
“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 of PACE Equity. “We’ve identified a critical need for flexible, short-term C-PACE financing—and built a solution to meet it. The ability to prepay at par on a short duration basis is a highly attractive option in today’s market.”
The product’s value is already proven. PACE Equity recently funded $63.3 million in fixed-rate C-PACE financing for a mixed-use luxury resort in Utah. The project includes a Topgolf®-branded 18-hole golf course, a clubhouse, event spaces, equestrian center with private trails, fine dining featuring an Argentinian culinary experience, a rooftop deck and bar, spa, pool, fitness center, and exclusive community amenities. The PACE Equity financing covered 42% of the project’s construction budget.
As Beau Engman, president and founder of PACE Equity shares, “It’s flexible, it’s scalable, and it works for both projects already under construction and for new developments. For sponsors facing a challenging capital markets environment, it opens doors that other financing can’t.”
Key Features of PACE Equity’s Large-Asset C-PACE Financing:
- Flexible Prepayment: No penalty after five years, with limited penalties starting at three to four years.
- Deferred Payments: Option to delay debt service for up to four years to allow for construction, lease-up, or business plan execution.
- Lower-Cost Alternative to Bridge Loans: Long-term, fixed-rate financing at a lower cost, with no pressure to refinance until market conditions allow.
- Attractive Pricing: Spreads starting in the high 200s over the 10-yr UST.
Large-asset C-PACE financing is part of a broader industry shift. C-PACE is now enabled in 40 states and gaining momentum across all asset classes; total lending volume reached nearly $10 billion at the end of 2024. Developers nationwide are using it for capital stack flexibility— solidifying it as a mainstream financing solution for major commercial real estate projects.
