PACE Equity Launches Flexible Large-Asset Financing Solution and Closes a $63 Million Project
New approach offers compelling alternative to costly bridge loans, with prepayment flexibility and deferred payments
MILWAUKEE, Wis., Sept. 22, 2025 (GLOBE NEWSWIRE) -- PACE Equity, the nation’s leader in Commercial Property Assessed Clean Energy (C-PACE) financing, has introduced a new financing solution designed specifically for the needs of larger developments and recapitalizations, such as those looking for $50 million or more. The new solution solves large-asset challenges by offering more competitive pricing and flexible prepayment options. It 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 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. PACE Equity's solution can fund at pre-construction, during construction, or up to 3 years after certificate of occupancy. The funds can be deployed not only as development capital; but also to recapitalize assets.
“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 mid-construction for a luxury hospitality and mixed-use development in Deer Valley, Utah. The project includes a golf course, hitting bays, Topgolf®, 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 was more than 40% LTC.
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 and Exit Strategy: The product is structured with a tight exit on the prepayment side, aiming for a 0% prepayment penalty after five years, with only limited penalties after 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.
About PACE Equity
With deep C-PACE experience and a direct lending model, PACE Equity brings certainty to your capital stack. With almost $1 billion funded and $2 billion in committed capital, we provide long-term, low-cost, non-recourse financing that enhances returns and moves projects forward. We offer binding commitments and end-to-end management that developers trust. Learn more at pace-equity.com.
Margaret Naczek PACE Equity, LLC mnaczek@trozzolo.com
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