Lone Star PACE the leading administrator of C-PACE financing in Texas helped facilitate a $3.6 million C-PACE assessment for a six-building industrial development in Denton.
The 107,000-square-foot project will deliver modern, flexible industrial space to support the region’s continued population and business growth. The sponsor is leveraging C-PACE financing to fund the energy-efficient building envelope and lighting systems. These measures are projected to reduce energy usage by 37% annually, significantly lowering operational costs while improving long-term asset performance.
Lee McCormick, President of Lone Star PACE, said: “C-PACE continues to be a powerful tool for new construction in high-growth markets like Denton. By supplementing the capital stack with low-cost, long-term, and flexible financing, developers can reduce their overall weighted cost of capital while investing in efficiency upgrades that benefit the asset and further the county’s sustainability goals. We’re pleased to support this project alongside our partners at Petros PACE Finance.”
Commercial Property Assessed Clean Energy (C-PACE) is an innovative financing mechanism that enables property owners to fund energy efficiency, water conservation, and renewable energy improvements through a voluntary assessment placed on the property.
The program offers long-term, fixed-rate, non-recourse financing that can improve cash flow, reduce operating expenses, and increase asset value. Because the assessment runs with the property, C-PACE can be transferred upon sale, making it a flexible and attractive capital solution for both new construction and retrofit projects.
Andy Weber, VP Originations at Petros PACE Finance, said, “This closing reflects the flexibility of C-PACE financing as a tool to enhance the capital stack and improve overall project economics, while underscoring Petros’ role as a committed partner to property owners and developers. Our expertise allows us to structure solutions that meet specific financing needs and keep the process efficient from start to finish.”