Deer Valley, Utah, September 19, 2025
News Summary
A new large-asset C-PACE financing product provides fixed-rate, balance-sheet funded capital intended as an alternative to bridge loans and mezzanine debt. The structure lets borrowers defer debt service for up to four years during construction or lease-up and offers flexible prepayment, including par prepayment after five years and reduced penalties beginning in year three. The product launched with a $63.3 million C-PACE financing for a mixed-use resort in Deer Valley, covering roughly 42% of construction costs. It targets institutional-scale projects, helps lower weighted average cost of capital, and supports energy upgrades and construction stabilization.
PACE Equity rolls out large-asset C-PACE financing for big projects, validated by $63.3M SkyRidge Resort deal
What’s new: PACE Equity has introduced a new large-asset Commercial Property Assessed Clean Energy (C-PACE) product designed to give developers fixed-rate, lower-cost short-term capital with features that include deferred payments and flexible prepayment. The offering is positioned as a lower-cost alternative to bridge and mezzanine loans and was recently used to fund $63.3 million for the SkyRidge Resort in Deer Valley, Utah.
Key product features and terms
The solution builds on the established C-PACE model and targets large construction and recapitalization needs. Core features include:
- Fixed-rate financing, providing rate certainty.
- Payment deferral — debt service may be delayed for up to four years to cover construction or lease-up periods.
- Flexible prepayment — options to prepay at par on a short-duration basis, with prepayment at par after five years and minimal penalties starting as early as year three.
- Competitive pricing — spreads noted starting in the high 200s over the 10‑year U.S. Treasury.
- Balance-sheet capacity — the lender can fund larger deals and write larger checks for institutional borrowers.
Why the product matters now
Market conditions and an approaching wave of maturing loans have pushed developers toward short-term, often costly financing. With nearly $1 trillion of commercial debt maturing in 2025 and elevated interest rates, many projects face refinance pressure. This C-PACE product aims to remove the immediate refinance imperative by locking in longer, stable terms and enabling refinancing later when market conditions improve.
How it compares to alternatives
Compared with bridge loans or mezzanine debt, the new offering is presented as lower-cost, long-term fixed-rate capital that can be used to replace or supplement existing senior debt, fund cost overruns, create interest reserves, or otherwise reshape a project’s capital stack without the near-term cash strain associated with higher-priced short-term credit.
Proof of concept: SkyRidge Resort
The product’s first high-profile use was a mid-construction recapitalization for SkyRidge Resort in Deer Valley, Utah. PACE Equity provided $63.3 million in fixed-rate C-PACE financing that covered about 42% of the project’s construction budget, helping complete a lodge, clubhouse and resort amenities.
SkyRidge includes an 18-hole Topgolf®-branded golf course, clubhouse, event spaces, an equestrian center and private trails, multiple dining options including an Argentinian culinary concept, a rooftop deck and bar, spa, pool, fitness center and exclusive community amenities. The community is anchored by a six-story luxury Stelle Lodge offering ownership opportunities and upscale transient lodging. The developer also qualified for a proprietary CIRRUS Low Carbon certification to secure lower rates and additional energy savings via high-performance building upgrades.
Practical uses and adoption
The product is aimed at both projects already under construction and new developments. Common use cases include:
- Completing construction and stabilizing assets.
- Covering cost overruns and funding interest reserves.
- Partially paying down or refinancing senior debt to extend maturities.
- Reshuffling capital stacks to improve weighted average cost of capital.
Industry context and momentum
C-PACE has expanded since its origin about two decades ago in Berkeley, California, and is now enabled in 40 states. Total C-PACE lending volume reached nearly $10 billion by the end of 2024. Institutional adoption is growing, with more large borrowers and senior lenders viewing C-PACE as an accretive and accepted financing tool. Banks and other senior lenders have become more receptive to C-PACE over time because it can help close large deals, preserve relationships, and avoid loan participations that share client details with outside parties.
Takeaway
The new large-asset C-PACE product offers a way for sponsors to obtain long-term, fixed-rate capital that reduces immediate refinance pressure and lowers overall cost of capital versus some alternative debt and equity solutions. The SkyRidge transaction demonstrates the product’s use as a mid-construction recapitalization tool that can materially lower a project’s weighted average cost of capital while funding completion and performance upgrades.
FAQ
Q: What is C-PACE?
A: C-PACE stands for Commercial Property Assessed Clean Energy. It is a financing mechanism that provides long-term funding for energy efficiency, renewable energy and related improvements and is repaid via an assessment on the property tax bill.
Q: Who can use this new product?
A: The product targets large-scale commercial real estate projects, including developments already under construction and new builds needing recapitalization or capital stack restructuring.
Q: How long can payments be deferred?
A: Debt service can be deferred for up to four years to cover construction or lease-up periods.
Q: Can borrowers prepay the loan?
A: Yes. The offering includes flexible prepayment options, including the ability to prepay at par after five years and reduced penalties beginning as early as year three. Short-duration par prepayment options are available and are attractive in the current market.
Q: What pricing is available?
A: Pricing examples cite spreads starting in the high 200s over the 10‑year U.S. Treasury, though final terms will depend on project specifics and underwriting.
Q: Where is C-PACE available?
A: C-PACE is enabled in 40 U.S. states. Availability and program details vary by state and local jurisdiction.
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Key features at a glance
| Feature | Details |
|---|---|
| Rate type | Fixed-rate financing for long-term certainty |
| Payment deferral | Up to 4 years of debt service deferral during construction or lease-up |
| Prepayment | Prepay at par after five years; minimal penalties may apply starting in year three; short-duration par options |
| Pricing | Spreads starting in the high 200s over the 10‑year U.S. Treasury (indicative) |
| Use cases | Construction completion, recapitalization, cost overruns, interest reserves, partial or full senior debt refinancing |
| Geographic reach | Enabled in 40 states; lender has balance-sheet capacity for larger deals |
| Recent proof point | $63.3M financing for SkyRidge Resort covering about 42% of the project’s construction budget |
Deeper Dive: News & Info About This Topic
Additional Resources
- Boston Real Estate Times: Pace Equity unveils flexible large-asset financing product
- Wikipedia: Property-assessed clean energy (PACE)
- Mile High CRE: Pace Equity launches flexible large-asset financing product
- Google Search: C-PACE financing
- ConnectCRE: Pace Equity Group’s Andrew Freter on C-PACE as a financing source
- Google Scholar: Commercial PACE financing
- ConnectCRE: Deer Valley resort obtains $63.3M C-PACE loan
- Encyclopedia Britannica: Property-assessed clean energy
- PR Newswire: Petros PACE Finance closes $153M C-PACE deal
- Google News: C-PACE financing
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
