PLC’s Matthew McCormack Provides Clarity to C-PACE Benefits at Upcoming Connect Multifamily Event in Dallas

The current finance environment for commercial real estate borrowers is more complicated than it was earlier in the decade, with interest rates remaining elevated and traditional lenders stepping back from the sector.  Fortunately, C-PACE (Commercial Property Assessed Clean Energy) financing has emerged as a strategic option, helping multifamily borrowers across Texas make sure their deals can pencil out.

In the run-up to his participation at Connect Texas Multifamily as one of the experts on the “Texas Transactional Blueprint: Navigating Multifamily Dealmaking Today” panel, Matthew McCormack, PACE Loan Group’s Senior Vice President, provided insights to Connect CRE:

Texas has encouraged the use of PACE and C-PACE financing at the state level, but these transactions must be backed by in-place programs. How widely have Texas counties and municipalities adopted PACE and C-PACE programs?

C-PACE can be a valuable part of a capital stack for commercial investors, multifamily in particularly, in Texas. 17 counties and a number of cities have adopted C-PACE programs.

For example, Pace Loan Group (PLG) has closed multiple C-PACE loans in Texas, including $22.5 million for energy and water upgrades at the Hotel Blossom in Houston, $12 million for new construction of The Grove senior living property in Austin, and $1.6 million for Centro Studio Homes in Austin, an adaptive reuse project that funds a multifamily community.

Industry awareness of PACE has certainly increased in recent years. That said, do borrowers come to the table with a clear idea of how to use PACE to accomplish their goals, or do they rely on your guidance to show them how?

As people learn about it, more and more are including it. TX?PACE now covers most of the state’s major commercial building stock, with growing adoption across secondary markets.

Are these programs fairly uniform or does a borrower need to make adjustments to accommodate differences across the state?

Because Lone Star PACE and Texas PACE Authority (C-PACE administers) are all programs statewide, borrowers experience uniform documentation, application flow, and underwriting standards regardless of location. 

Do borrowers tend to use PACE financing as a way of offsetting other expenses in getting a project completed, or closing gaps in the capital stack?

Advantages are many. Borrowers can receive retroactive financing. C-PACE funds are eligible for improvements completed within the past 1–2 years, providing liquidity and refinancing flexibility. It allows borrowers to reduce or eliminate mezzanine debt/equity, substitute with lower-cost fixed-rate capital, and improve IRR or operating returns. With bank credit tightening and elevated rates, borrowers use C?PACE via PLG to secure stable, long-term financing for new-build and retrofit projects.

Want a front-row seat to the strategies shaping Texas multifamily today? Join top voices from development, investment, dealmaking, and operations on August 28^th at Connect Texas Multifamily—your gateway to what’s next in the market. Register now at www.ConnectTXMF2025.com | EVENT DATE: Thursday, August 28^th | VENUE: The Joule, Dallas