PLG’s Matthew McCormack to Provide 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 C-PACE financing at the state level, but these transactions must be enabled by each locality. How widely have Texas counties and municipalities adopted PACE and C-PACE programs? 

C-PACE is widely available for multifamily and commercial investors across Texas. Over 100 counties and cities have adopted C-PACE programs, covering more than 75% of the state’s population, thanks to the hard work of Texas PACE Authority and Lone Star PACE, the two program administrators. TX-PACE now covers most of the state’s major commercial building stock, with growing adoption across secondary markets. 

For example, PACE Loan Group (PLG) has closed multiple C-PACE loans in Texas, including $22.5 million as a post-construction refinance 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, which funded an adaptive reuse project for a multifamily project. 

Industry awareness of C-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 the various uses of C-PACE financing, more and more are including it in their construction capital stacks and as a part of their refinancing packages. We demonstrate how and when C-PACE can be used: pre-construction, during construction, and post-construction. Borrowers often do not realize that C-PACE can be used to recapitalize a Texas project up to two years after completion. 

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 administrators) are statewide programs that adhere to the same Texas PACE legislation, borrowers experience uniform documentation, application flow, and underwriting standards regardless of location. 

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

C-PACE has many uses to help solve problems in deals. For example, borrowers can receive retroactive financing. C-PACE funds are eligible for improvements completed within the past 1–2 years, providing liquidity and refinancing flexibility. Additionally, C-PACE financing allows borrowers to reduce or eliminate high-octane mezzanine debt/equity, substituting it with lower-cost fixed-rate capital, and thus improving IRR and operating returns. Finally, with bank credit having tightened years ago and with elevated interest rates, borrowers use C-PACE via PACE Loan Group 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