**PLC’s Matthew McCormack Highlights C-PACE Financing Benefits for Texas Multifamily Projects**
The current financial climate presents increased challenges for commercial real estate borrowers, particularly in the multifamily sector. With interest rates remaining elevated and traditional lenders pulling back, innovations like C-PACE (Commercial Property Assessed Clean Energy) financing have become essential tools for keeping projects viable in Texas.
Matthew McCormack, Senior Vice President at PACE Loan Group (PLG), will be sharing his insights on this topic as a panelist during the “Texas Transactional Blueprint: Navigating Multifamily Dealmaking Today” session at the upcoming Connect Texas Multifamily conference. Ahead of the event, McCormack offered key observations on the growing role of C-PACE financing in facilitating successful multifamily deals across the state.
**Increasing Momentum Across Texas**
While C-PACE is encouraged at the state level in Texas, its effectiveness hinges on adoption by counties and municipalities. McCormack pointed out that 17 counties and several cities across Texas have implemented C-PACE programs, enabling multifamily investors to incorporate it into their capital stacks.
“PACE Loan Group has closed multiple C-PACE transactions in Texas,” said McCormack. “Examples include $22.5 million in financing for energy and water upgrades at Houston’s Hotel Blossom, $12 million for the construction of The Grove senior living property in Austin, and $1.6 million for Centro Studio Homes, an adaptive reuse multifamily project also in Austin.”
**Education and Consistency Are Key**
McCormack emphasized that as awareness of C-PACE grows, more borrowers are embracing it as part of their financial strategy. “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.”
On the question of program consistency across Texas, McCormack reassured borrowers that the process is uniform regardless of jurisdiction. “Since Lone Star PACE and Texas PACE Authority administer programs statewide, borrowers benefit from consistent documentation, application flows, and underwriting standards.”
**A Strategic Tool for Capital Efficiency**
C-PACE offers multiple advantages for borrowers, especially in a tightening credit environment. According to McCormack, “Borrowers can receive retroactive financing for improvements completed within the past one to two years. It provides liquidity and refinancing options, replaces high-cost mezzanine debt with lower-cost fixed-rate capital, and helps improve internal rates of return or operating results.”
He added, “With banks tightening credit and rates elevated, using C‑PACE through PLG allows borrowers to access stable, long-term financing for both new construction and retrofit projects.”
**Join the Discussion**
For those seeking to learn more about the future of multifamily investment and financing in Texas, the Connect Texas Multifamily conference is the place to be. The event will be held on Thursday, August 28th at The Joule in Dallas. Top voices from development, investment, dealmaking, and operations will convene to share the latest insights shaping the market.
Event details and registration can be found at www.ConnectTXMF2025.com.
