Latest news with #C-PACE
Forbes
a day ago
- Business
- Forbes
Interest In Experiential Hotels: Up For Consumers, Down For Financing
Rafi Golberstein, CEO, founded PACE Loan Group (PLG) in 2017, providing direct C-PACE financing to commercial real estate property owners. Nontraditional hospitality is seeing growing traveler interest but is constrained by a lack of interest from financing sources. In my observation, since 2020, leisure travel has migrated away from traditional hotels to a more eco-friendly, unique and often rural category of lodging within the boutique hotel category called experiential lodging. This includes treehouses, campgrounds, cabins in the woods and even boathouses. The Global Wellness Institute predicts a related category, wellness tourism, will average annual expenditure growth of 16.6% to 2027, noting travel trends that include travel for mental health, sleep and recovery. While hospitality loans have been a significant part of my C-PACE lending business since we started, the new experiential lodging properties are increasing in popularity among developers because they are finding fewer traditional financing sources. C-PACE financing also fits the 'vibe' of these properties, which tend to be more environmentally friendly and sustainable. Our experience is echoed industry research. According to one boutique hotel trend report, the boutique hotel market grew from $87.95 billion in 2023 to $93.79 billion in 2024 at a compounding annual growth rate (CAGR) of 6.6%. According to the report, 'The market is projected to grow to $121.90 billion by 2028 at a CAGR of 6.8%, supported by the adoption of sustainable practices, advanced technology for personalized guest experiences, a shift towards experiential hospitality, investment in property refurbishment, and the expansion of boutique chains into emerging markets.' Growth comes from leisure travelers looking for unique experiences they don't find in traditional hotels. They often conduct their research on social media and book directly with the property. The increase in this category was noted nearly 10 years ago in a report from CoStar, a research platform covering commercial real estate. The new category of boutique, unflagged hotels is expected to continue to increase, with projections of a nearly 50% growth by 2034, according to a market research and consulting firm based in New York. Why Financing Sources Tend To Stay Away While many travelers like these nontraditional, experiential properties, banks or other financing sources often don't. These unique, unconventional properties don't fit a traditional financing model. With construction costs continuing to increase, I've observed that many of these properties are using nonstandard materials. In addition, they may have a rural location that makes underwriting from a traditional bank difficult. Even when banks are willing to provide a loan, in my experience and transactions with unflagged hotel loans, they often max out at 60% loan-to-value. That can leave 40% of the costs remaining, ending the hopes of some new hoteliers targeting this space. C-PACE financing, a property tax assessment tool that finances energy-efficient and resilient construction or renovation over 30 years, has become a strong fit to solve the financing challenge and provide strong returns for efficient operations. That 30-year longer window brings down the overall cost of capital for the hotel entrepreneur, and in most cases, is the final piece of the project's financing, allowing it to go forward. Three Examples Of Successful Nontraditional Hospitality My company is a direct C-PACE lender to several experiential hotels. In the case of one retreat, recently named to Condé Nast's Best Places to go in the Midwest, my company was able to finance the building envelope, high efficiency windows, HVAC, LED lighting and plumbing systems, which enabled the developers to continue building their dream vacation campus in the woods. Now in their fourth year of operation, the project is consistently booked with visitors interested in an unplugged stay in the woods. Another shining example of the unique approach of an experiential hotel is a hotel bordering Joshua Tree National Park in California. Made from recycled shipping containers, the hotel, with sprawling views, will include 65 guestrooms with private outdoor patios, an outdoor swimming pool overlooking the park, a gift shop and a poolside cocktail bar serving small bites. The independent, design-forward hotel qualified for C-PACE improvements, from a building envelope to seismic measures. The $11.2 million, 30-year loan used modular construction to reduce construction time by nearly half. And finally, an experiential lodging experience that had little permanent structure also qualified for a C-PACE loan that paved the way for operations for years to come. A family-owned campground in northern California expanded by adding cottages in addition to campsites and needed to update its wastewater treatment system to avoid costly transportation of waste storage and hauling. C-PACE provided $4.2 million to finance a new wastewater treatment and reuse system, electrical work, insulation and a solar panel system, which are expected to save $1.1 million annually throughout the four-year payback period. The project, completed in December 2024, was able to double their occupancy and begin to attract new guests and set the property up for the future. Caveats To C-PACE Loans C-PACE does have limitations, which vary by state and program. There are three major loan constraints: 1. C-PACE lenders cannot lend more than 100% of C-PACE eligible proceeds. This varies, but generally eligible proceeds are any improvement that relatively impacts the utility spend of the property. 2. C-PACE lenders cannot lend more than a certain percentage of a property's appraised stabilized value. Certain states and C-PACE programs set these guidelines themselves. In my experience, these generally range from 20% to 35% of stabilized appraised value. 3. C-PACE lenders cannot lend more than what any mortgage or lienholder on the property will consent to. This is most commonly the limiting factor to the C-PACE loan size. The senior lender will underwrite each sponsor and project on its own accord to evaluate the loan-to-value (LTV) ratios, debt service coverage ratios (DSCRs) and loan structure to determine the amount of C-PACE financing they will consent to in each deal. Big Chains: Paying Attention And Shifting The Market Nontraditional hospitality types have gained popularity from traditional hospitality chains, with both Marriott and Hilton acquiring boutique brands. In 2025, Marriott acquired two experiential travel brands—Postcard Cabins and Trailborn—to boost their offerings in the experiential category. Hilton is focused more on the 'small luxury' market, but in their announcement of the acquisition of more than 400 properties, the company cites the nontraditional, off-the-beaten-path options as a new way to complement their traditional urban and vacation destinations. As these experiential hotel chains continue to attract the interest of the mainstream hotel platforms, it's likely that more banks and traditional financing sources will offer more competitive pricing for financing, pushing C-PACE financing out of the lead position. However, C-PACE can still benefit the owner with its long payback period and flexible prepayment terms. And importantly, C-PACE rewards developers for the efficient use of resources and materials that lead to lower operational costs. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
18-06-2025
- Business
- Yahoo
City of Huntsville Launches New C-PACE Program and Selects Lone Star PACE as Administrator
Program launch marks another significant milestone in expanding access to the sustainable financing tool across Texas. DALLAS, June 18, 2025 (GLOBE NEWSWIRE) -- Lone Star PACE, a leading facilitator of Commercial Property Assessed Clean Energy (C-PACE) financing in Texas, is proud to announce it has been selected as a program administrator for the City of Huntsville's newly launched C-PACE program. This addition brings Lone Star PACE's jurisdictional footprint to 26 cities and counties across Texas. Huntsville City Council voted to approve Lone Star PACE as an administrator during its June 17th meeting. The company is led by registered municipal advisors with experience financing more than $45 billion in public benefit projects nationwide. Since 2020, Lone Star PACE has facilitated $338M in C-PACE assessments for projects totaling $1.5B in value. The City of Huntsville's new C-PACE program will: Allow Lone Star PACE to help property owners in Huntsville access C-PACE financing, which supports resource conservation by funding energy and water-efficient upgrades at commercial buildings. Provide property owners with increased access to flexible, long-term financing that can fill up to 35% of the capital stack, making sustainability upgrades more accessible. Drive redevelopment, attract investment and support Huntsville's economic development goals amid sustained population growth. Promote local workforce development by spurring new projects that require skilled labor in the construction, engineering, and energy-efficiency sectors. Lee McCormick, President of Lone Star PACE, said: 'We're thrilled to bring C-PACE to Huntsville, a community that's experiencing steady growth and economic momentum. C-PACE is a smart, forward-thinking tool that will help the city sustainably manage that growth while attracting new investment and conserving critical resources — all without the use of public funds." Commercial Property Assessed Clean Energy (C-PACE) is a state-enabled program that allows property owners and developers to access low-cost, long-term financing for energy and water conservation systems at commercial buildings. Property owners can use C-PACE to finance new construction, renovations, retrofits or recapitalizations. C-PACE projects are funded through private capital providers and do not rely on taxpayer funds. About Lone Star PACELone Star PACE serves as a program administrator for city and county Commercial Property Assessed Clean Energy (C-PACE) programs in Texas. We help local governments, economic development corporations, chambers of commerce, and trade associations promote economic development and resource conservation by facilitating C-PACE projects alongside property owners, capital providers, contractors, and other stakeholders. Our goal is to promote sustainability as well as increased property values while positively impacting cash flow and utility savings. If you have a project that could benefit from C-PACE financing, contact Lone Star PACE today. Media Contact: Olivia Lueckemeyer Director of Marketing & Media Relations, Lone Star PACE Olivia@
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Amalgamated Bank Advances Climate Leadership with C-PACE Financing for 205kW Solar Energy and Roofing Project in New Bedford
NEW BEDFORD, Mass., June 10, 2025 (GLOBE NEWSWIRE) -- Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), today announced the successful closing of a Commercial Property Assessed Clean Energy ("C-PACE") financing under the PACE Massachusetts Program using Allectrify's FASTPACE Platform. The C-PACE financing will fund a 205kW (kilowatts) DC (Direct current) solar PV (PhotoVoltaic) installation and associated roofing upgrades at an industrial building located in the Port of New Bedford. The property is owned and operated by Marder Seafood; a trusted leader in premium, sustainably sourced seafood in the area for more than 50 years. Amalgamated Bank, which opened its downtown Boston Commercial Banking office in 2020, invests nearly 40% of its total lending portfolio in climate protection solutions. This financing further reflects the Bank's climate leadership and focus on decarbonization and renewable energy. The C-PACE closing showcases how clean energy and C-PACE financing can support key regional industries, drive investments in New England commercial building stock, and lower energy costs for industrial end-users. The project will drive over $1.9 million in lifetime energy cost savings at the property. C-PACE financing supports long-term, competitive financing for commercial property improvements for energy efficiency, renewable energy, resiliency, and water conservation. The project represents the fourth financing closed to date under the Massachusetts C-PACE Program since its launch in 2020. Amalgamated Bank is a leader in deploying C-PACE capital, and its partnership with Allectrify enables efficient closing for projects of all sizes. 'With more than $1.2 billion in PACE assets in our investment portfolio, we are proud to lead the industry in providing solutions that empower borrowers to implement proven energy-savings strategies in commercial properties,' said Mark Walsh, New England Regional Manager & Senior Vice President at Amalgamated Bank. 'Through our ongoing partnership with Allectrify, we look forward to executing even more C-PACE deals that drive sustainable progress in Boston and beyond.' This $1.3 million C-PACE financing represents an innovative approach to green capital deployment. C-PACE makes capital available to a broader set of property owners who seek to make energy efficiency and other building energy improvements. 'This transaction is a prime example of Amalgamated Bank's commitment to putting climate solutions into practice, in this case supporting a commercial solar project at an industrial property serving a classic New England industry,' said Colin Bishopp, Chief Executive Officer of Allectrify. 'We are pleased to see this project closed on Allectrify's FASTPACE platform which enables efficient C-PACE execution in programs across the country.' About Amalgamated Bank: Amalgamated Bank, the wholly owned banking subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), is a mission-driven full-service commercial bank and a chartered trust company with a combined network branches in New York City, Washington D.C., San Francisco, and Boston. Amalgamated Bank provides commercial and retail banking products, investment management and trust and custody services, and lending services. Since their founding in 1923, Amalgamated Bank is diligent in fulfilling their mission to be America's socially responsible bank, empowering organizations and individuals to advance positive change. The businesses that Amalgamated Bank focuses on are generally mission aligned with our core values, including sustainable companies, clean energy, nonprofits, and B Corporations. About Allectrify, PBC: C-PACE made simple for lenders and borrowers. Allectrify's FASTPACE platform enables banks, credit unions, CDFIs and non-bank lenders to offer C-PACE financing quickly and easily, at no cost to the lender and with reduced transaction costs for borrowers. Through Allectrify's network of FASTPACE lenders, borrowers can access C-PACE financing for projects of all sizes. Media Contacts Ayele Ajavon Head of Communications Amalgamated Bank 929-979-5811 media@ Lainie Rowland Allectrify 973-908-9304 lainie@
Yahoo
27-05-2025
- Business
- Yahoo
Lone Star PACE Selected as an Administrator of North Central Texas Council of Governments' Regional C-PACE Program
DALLAS, May 27, 2025 (GLOBE NEWSWIRE) -- North Central Texas Council of Governments (NCTCOG) has selected Lone Star PACE to serve as an administrator of its newly launched Commercial Property Assessed Clean Energy (C-PACE) program, marking a significant step toward expanding sustainable development across the rapidly growing North Texas region. C-PACE is an innovative financing mechanism that enables commercial property owners to fund energy efficiency, water conservation and renewable energy improvements through long-term, fixed-rate financing repaid via a voluntary property assessment. This approach allows property owners to undertake substantial building upgrades without upfront capital, often resulting in improved cash flow and increased property value. Lee McCormick, President of Lone Star PACE, said: 'We are honored to partner with NCTCOG in bringing a unified C-PACE program to North Texas. This regional approach simplifies access to sustainable financing, fostering economic development and resource conservation across multiple jurisdictions.' The introduction of a regionwide C-PACE program is poised to deliver significant sustainability benefits. By facilitating energy and water efficiency upgrades, the program supports the conservation of vital natural resources that are experiencing record-high demand due to North Texas's rapid population growth and influx of corporate relocations. For municipalities, the regional C-PACE program presents an opportunity to stimulate local economies without relying on taxpayer dollars. By enabling private investment in private buildings, cities and counties can drive job creation, enhance the local tax base and promote environmental stewardship. Susan Alvarez, Director of Environment & Development for NCTCOG, said: 'We look forward to expanding PACE resources in the NCTCOG region!' Property owners stand to benefit from reduced operating costs, improved building performance and access to investment-grade capital that can be used for a wide range of eligible improvements, including HVAC systems, lighting, insulation, solar panels and water conservation measures. Lone Star PACE brings extensive experience to its role as program administrator, having facilitated more than $330 million in C-PACE assessments for projects totaling $1.5 billion across Texas. The firm's collaborative approach involves working closely with local governments, property owners, capital providers and senior lenders to ensure successful project implementation. About Lone Star PACELone Star PACE serves as a program administrator for city and county Commercial Property Assessed Clean Energy (C-PACE) programs in Texas. LSP helps local governments, economic development corporations, chambers of commerce and trade associations promote economic development and resource conservation by facilitating C-PACE projects alongside property owners, C-PACE capital providers, contractors and other stakeholders. The company's goal is to promote sustainability as well as increased property values while positively impacting cash flow and utility savings. For more information, visit About North Central Texas Council of GovernmentsThe North Central Texas Council of Governments (NCTCOG) is a voluntary association of local governments established in 1966 to assist local governments in planning for common needs, cooperating for mutual benefit and coordinating for sound regional development. NCTCOG's purpose is to strengthen both the individual and collective power of local governments and to help them recognize regional opportunities, eliminate unnecessary duplication, and make joint decisions. NCTCOG serves a 16-county region of North Central Texas, which is centered in the two urban centers of Dallas and Fort Worth. For more information on the Environment and Development Department, visit Media Contacts: Olivia LueckemeyerDirector of Marketing & Media RelationsLone Star PACEolivia@ Susan AlvarezDirector of Environment & DevelopmentNorth Central Texas Council of Governments (NCTCOG)salvarez@
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Business Standard
29-04-2025
- Business
- Business Standard
Streamlined processes help companies speed up voluntary closures
The time taken to close down a company in accordance with the Companies Act has seen a dramatic reduction from an average of 499 days to only 60 days over the past three years. And the timeline to submit final reports under the Insolvency and Bankruptcy Code (IBC) has come down to 200 days, according to a working paper by the Prime Minister's Economic Advisory Council (PM-EAC). Until 2021-22, voluntary liquidation, under the Companies Act, would take an average of 499 days. The main obstacles included the time taken by the registrar of companies (RoC) to publish notices of closure in newspapers. Further, there were no fixed timelines for each step and there would be multiple demands for document resubmissions. The government resolved the key issue by publishing weekly or fortnightly notices which itself brought the timeline to 195 days. In the IBC process, the paper highlighted, the delays were due to the time taken to obtain no-objection certificates (NoCs) from various departments, including the Income-Tax (I-T) department and a lack of standard operating procedure. In November 2021, the Insolvency and Bankruptcy Board of India (IBBI) brought out a clarification stating there is no NoC requirement from the I-T department. In April 2022, the timelines were reduced and IBBI also brought in a compliance certificate for voluntary liquidations with a checklist for faster processing of cases. The working paper by PM-EAC highlighted that the nuts-and-bolts reforms are not systematically researched, documented, or taught, but are an important part of a policymaker's toolkit. Before the IBBI amendments, the average time for submission of final reports took 499 days for cases with creditors and 461 days for cases without creditors, the paper said. 'One thing that can be improved further is faster processing at the National Company Law Tribunal (NCLT)-level, so that the time taken for final closing of companies can be reduced after submission of the final report,' the working paper said. IBBI data showed that till December 2021, final reports for voluntary liquidations were submitted for 49 per cent cases and final orders for dissolution passes for only 25 per cent. But as of December 2024, of the 2,133 cases initiated for voluntary liquidation, final reports have been submitted for 75 per cent cases and 54 per cent cases have been closed by dissolution. The remaining 21 per cent are at the NCLT-level. The working paper highlighted that the setting up of the faceless Centralised Processing for Accelerated Corporate Exit (C-PACE) on May 1, 2023 fixed timelines for each step, identified nodal departments from each department and limited the number of resubmission requests by RoCs. The average time taken to strike off cases filed under this system reduced to only 90 days in 2023-24 and further to 60 days in 2024-25 until January. 'This is even better than what was envisaged when C-PACE was announced, which was getting the processing time to under six months,' the working paper said.
