ATLANTA–(BUSINESS WIRE)–Stonehill PACE announced that it has entered into approximately $150 million in Commercial Property Assessed Clean Energy Loans (“C-PACE”) over the past 12 months for renewable energy and energy-efficient components and seismic retrofit in the hospitality, multi-family, retirement home, industrial and mixed-use real estate sectors.
“We effectively doubled the number of clean energy sources assessed by our commercial properties last year, reaching over $300 million,” said Jared Schlosser, Senior Vice President and Principal of Stonehill PACE. “While we are primarily known for our hospitality lending business, a significant percentage of our 2021 volume was in other real estate asset classes.”
Of the 18 transactions completed in the past year, eight were for multi-family and seniors housing, seven for hotels and one in the industrial and mixed-use sectors. Stonehill PACE also completed one of the first condominium developments using C-PACE with a $10.6 million loan for a high-rise development at 950 3rd Street in Washington DC.
Other notable transactions include a $13.8 million loan for the Mesa at Laguna Ridge apartments in Elk Grove, California. Stonehill PACE achieved a combined loan-to-value ratio of 95% with C-PACE financing. Additionally, Stonehill PACE provided $17.8 million in retroactive C-PACE funding for the San Jose Milpitas element.
Commercial building owners use C-PACE to obtain low-cost, long-term financing for energy efficiency and renewable energy improvements in commercial buildings. C-PACE uses borrowed capital, which is repaid as a surtax on their property taxes for up to 30 years.
According to to research in the Journal of Structured Finance, one of the drivers of growth in C-PACE funding is the increased focus on environmental, social and governance (“ESG”) initiatives. As more owners become aware of C-PACE, they find it an attractive addition to their capital to finance building improvements to combat climate change and Natural disasters.
“As PACE funding becomes more accepted, our business volume has grown in tandem,” Schlosser said. “To meet the demands of our new growth, we have added nine full-time members in 2021 and plan to add half a dozen additional associates in 2022.”
About Stonehill PACE
Stonehill PACE, a division of stone hill, is a direct lender for Property Assessed Clean Energy (PACE) financing. The group specializes in PACE financing for all commercial asset classes. His vast experience in researching, underwriting and closing real estate transactions is unparalleled in the PACE industry. The Stonehill PACE team has earned a reputation for delivering efficient, professionally managed execution. For more information, please visit www.stonehillpace.com.