Lone Star PACE has completed $64.8 million in Commercial Property Assessed Clean Energy (C-PACE) financing through the Texas PACE Program during the first half of 2026. The funding is tied to approximately $279 million in commercial real estate investment across the state and is aimed at helping property owners materially lower energy and water usage through qualifying improvements.
The six transactions reflect a broad mix of asset types, underscoring the growing applicability of C-PACE in different segments of the built environment. According to Lone Star PACE, the financings support projects in hospitality, retail, industrial, data centers and specialty development. By using C-PACE, these owners and developers are adding a dedicated source of capital for efficiency upgrades while seeking to enhance overall project economics.
Named projects financed in the period include the Holiday Inn Express in Pilot Point and the MCM Elegante in Beaumont, both hospitality assets. In Houston, Ashford Yard is among the properties tapping the program, while Cold Storage Seabrook represents the industrial side of the portfolio. Technology infrastructure is represented by the Vesgro Data Center in Irving, and specialty storage and automotive-focused facilities are reflected in the Maranello Luxury Garages in Plano.
The Texas PACE Program allows commercial property owners and developers to fund eligible energy and water conservation measures through a voluntary assessment on the property. This structure is designed to align the financing term with the useful life of improvements and keep repayment tied to the asset rather than the owner. Program guidelines indicate that C-PACE capital can support up to 35% of a project’s capital stack, providing a meaningful layer of funding alongside senior debt and equity.
In addition to retrofit activity, C-PACE in Texas can be applied to new construction and redevelopment, giving sponsors more flexibility in how they incorporate high-performance building systems at the front end of a project. The six closings reported by Lone Star PACE during the first half of 2026 illustrate how sponsors across property types are incorporating efficiency-focused capital into their financing plans while advancing long-term operating cost reductions.
