Count on 2025 to be a record year for C-PACE financing. There will be increased demand, especially because of the disruption in the marketplace, as C-PACE can help fill the gap left behind by senior lenders. This can be used to fund new construction developments, substantial rehabilitation projects and to recapitalize recently completed projects. More borrowers and senior lenders are now becoming familiar with this financing type and more states are jumping on board. Watch for large institutional lenders, banks and debt funds to become comfortable with this financing type going forward. As interest rates begin to tick down, that will free up the backlog of deals that have not penciled from a debt service coverage perspective because of high rates. C-PACE has increased in volume every year since its inception. Count on around $2B total of PACE this year and around $3B total next year.
Press
Crittenden Report | C-PACE will pick up the pace next year
Posted by Petros on September 20, 2024