**PLG’s Matthew McCormack to Provide Insights on C-PACE Financing at Connect Texas Multifamily**
The current financing environment for commercial real estate borrowers has become significantly more complex in recent years, with persistently elevated interest rates and a noticeable pullback by traditional lenders. Amid these challenges, C-PACE (Commercial Property Assessed Clean Energy) financing has emerged as a strategic alternative—especially for multifamily borrowers in Texas, helping ensure deals remain financially viable.
Ahead of his appearance at the upcoming Connect Texas Multifamily event, where he will be a panelist on “Texas Transactional Blueprint: Navigating Multifamily Dealmaking Today,” Matthew McCormack, Senior Vice President at PACE Loan Group (PLG), provided key insights on the evolving role of C-PACE in today’s real estate market.
**Q: Texas has encouraged the use of C-PACE at the state level, but the programs must be adopted locally. How widespread is the adoption across Texas?**
C-PACE is now broadly available to multifamily and commercial property investors across the state. Over 100 counties and municipalities have adopted C-PACE programs, covering more than 75% of Texas’ population. This widespread adoption is a direct result of efforts by two key program administrators—Texas PACE Authority and Lone Star PACE. Today, TX-PACE services a significant portion of the state’s commercial building inventory, including both major cities and an increasing number of secondary markets.
PLG has been instrumental in implementing C-PACE in Texas, having closed several notable transactions, including:
– $22.5 million in post-construction refinancing for the Hotel Blossom in Houston
– $12 million for the new construction of The Grove, a senior living community in Austin
– $1.6 million for Centro Studio Homes in Austin, supporting an adaptive reuse multifamily project
**Q: Are borrowers coming to the table already knowledgeable about how to leverage C-PACE financing, or do they rely on your guidance?**
Awareness of C-PACE financing has grown significantly in recent years. More borrowers are now including it in their capital stacks for both construction and refinancing purposes. However, many still need guidance on how it can be effectively deployed—whether pre-construction, during construction, or post-completion. A common misconception is that C-PACE cannot be used after project completion, but in reality, it can be used to recapitalize a project up to two years after it’s finished.
**Q: Are C-PACE programs consistent across the state, or do borrowers need to adapt to local variations?**
One of the major advantages in Texas is the consistency offered by Texas PACE Authority and Lone Star PACE. As both organizations operate under uniform state legislation, borrowers benefit from standardized documentation, application processes, and underwriting criteria statewide.
**Q: How do borrowers typically use C-PACE financing—as a cost offset or to close funding gaps?**
C-PACE serves as a flexible financial tool that can solve several funding challenges. For example:
– Retroactive financing can be accessed for improvements completed in the past 1–2 years, providing liquidity and refinancing flexibility.
– It can replace more expensive mezzanine or equity funding with long-term, fixed-rate capital—enhancing internal rate of return (IRR) and operating performance.
– In today’s high-interest, tight-credit market, C-PACE offers a stable and reliable capital source for both new developments and retrofits.
**Attend Connect Texas Multifamily**
For those seeking to stay ahead of market trends and understand the strategic use of financing tools like C-PACE, the Connect Texas Multifamily conference is a must-attend event. Hear directly from developers, investors, and finance professionals on Thursday, August 28 at The Joule in Dallas. Don’t miss your front-row seat to the strategies shaping the future of multifamily in Texas. Registration details are available at www.ConnectTXMF2025.com.
