Lone Star PACE, a leading administrator of Texas’ C-PACE programs, has facilitated $21.9 million in C-PACE financing for Ironwood at Princeton. This new Class-A multifamily community is planned for 599 W. Princeton Drive in the rapidly growing DFW suburb of Princeton, Texas.
The 265,000-square-foot development will feature 306 units spread across 14 buildings at full build-out. The property owner is using Commercial Property Assessed Clean Energy (C-PACE) financing to fund critical energy and water-saving measures.
C-PACE-funded improvements include high-efficiency building envelope features, HVAC systems, LED lighting, domestic hot water systems, and low-flow plumbing fixtures. These upgrades are expected to reduce the property’s annual electricity and water usage by 25% and 20%, respectively, significantly lowering utility costs and enhancing the asset’s long-term value.
Lee McCormick, President of Lone Star PACE, said: “Ironwood at Princeton is a prime example of how C-PACE can drive sustainable growth in high-demand markets like North Texas. Together with Nuveen Green Capital, we were able to provide access to a capital solution that not only lowers the weighted average cost of capital for the developer but also ensures this new community is built with long-term resource efficiency in mind. We are proud to facilitate financing that enhances property value while aligning with the region’s broader economic and environmental goals.”
C-PACE is a state-enabled financing mechanism that allows property owners to access low-cost, long-term, fixed-rate financing for energy efficiency, water conservation, and renewable energy improvements.
For new construction projects like Ironwood at Princeton, C-PACE can be used to fund up to 35% of the capital stack, replacing more expensive mezzanine debt or equity. This lowers the weighted average cost of capital and allows developers to build a more high-performing asset.
Sean Ribble, Senior Director of Originations at Nuveen Green Capital, said: “We were thrilled to partner with the Sponsor and Lone Star PACE to capitalize this exciting new project in the fast-growing city of Princeton. By leveraging C-PACE to complete their mid-stream construction capital stack, the Sponsor will realize meaningful savings while building sustainably and providing the community with state-of-the-art residences.”
Located in Collin County, one of the fastest-growing regions in the nation, Princeton is seeing increased demand for high-quality housing. By incorporating sustainable design elements funded through C-PACE, Ironwood at Princeton aligns with modern development standards that prioritize resource efficiency and tenant comfort.