Sep 9, 2024
The Texas PACE Act, signed into legislation in 2013, requires oversight and administration of Commercial Property Assessed Clean Energy (C-PACE) programs established by cities and counties. Despite the critical role played by a program administrator in ensuring an effective and successful project, there tends to be confusion around the role companies like Lone Star PACE […]
Aug 30, 2024
Multifamily property owners have grappled with a persistent set of challenges that have only intensified over the past two years. In addition to a slowdown in rental income and elevated interest rates, many have seen their operational expenses skyrocket to unprecedented levels. One simple way to control costs is by analyzing and tackling a property’s […]
Aug 22, 2024
In today’s tight capital environment, property owners are increasingly turning to alternative financing sources to fund new construction projects or refinance existing buildings. Commercial Property Assessed Clean Energy, or C-PACE financing, is a relatively untapped solution that can replace more expensive forms of debt and help reduce the weighted average cost of capital. Rising demand […]
Aug 9, 2024
When deciding what to pair with mortgage debt, developers may find themselves choosing between mezzanine financing and Commercial Property Assessed Clean Energy, or C-PACE, to reduce the weighted average cost of capital. C-PACE financing is an attractive alternative to a mezzanine loan because it reduces the project’s capital cost and offers longer-term solutions for a […]
Aug 1, 2024
Adoption of C-PACE financing within the commercial real estate capital stack is expected to increase in the coming months as capital providers embrace the program’s ability to modernize aging properties and boost values. As we enter the second half of 2024, CRE owners continue to grapple with elevated interest rates and a heightened cost of […]
Jul 25, 2024
Triple-digit temperatures have once again arrived in Texas, putting immense strain on the state’s power grid as homes and businesses crank the A/C. The summer heat comes as thousands of new residents move into the state. Historic population growth, combined with the rise of artificial intelligence, cloud computing and bitcoin mining, are pushing demand for […]
Jul 19, 2024
The value of sustainable buildings is well documented, with rental premiums of 6% and sales premiums of 7.6% across commercial properties. Companies are willing to pay more for energy-efficient buildings if they expect those upgrades will translate to lower operating costs. The problem today is that finding those types of properties has become increasingly difficult. […]
Jun 25, 2024
PACE issuance got off to a strong start in 2024 as property owners looked to offset a lack of available bank debt with alternative financing solutions. PACE asset-backed securities volume totaled about $362 million through June 7, according to a new report from Morningstar DBRS. The robust volume comes on the heels of a record-setting […]
Jun 13, 2024
Amid widespread demand for sustainability and low-cost debt, one asset type is leading the charge for Texas’ Commercial Property Assessed Clean Energy program. Hospitality groups are increasingly turning to C-PACE to help finance new and existing projects, with half of loans administered by Lone Star PACE so far this year tied to hotels. Owners are […]
Jan 9, 2024
To provide services for guests, hotel properties are prone to consuming a high volume of energy and water. Heating, cooling, lighting, laundry, irrigation, and operating swimming pools are just some of the activities that drive usage. Just how much? A recent report from the Urban Land Institute reveals that hotels are among the highest energy […]