C-PACE Financing is Now a Capital Stack Conversation

At the in-person Connect Apartments 2026 event in Los Angeles on Sept. 22, finance naturally will be on the agenda. With C-PACE (Commercial Property Assessed Clean Energy) financing an increasingly important element of getting deals done, the experts brought together for the “Multifamily Finance & Lending Outlook: Navigating the New Capital Stack” conversation will include Natalie Viola, SVP originations for PACE Loan Group. Viola joined PLG from CBRE Investment Management, where she served as director of debt capital markets. Here, she provides her perspective on the evolving C-PACE loan market. 

Q: What drew you to C-PACE financing and to PACE Loan Group (PLG) in particular?

A: I was originally drawn to C-PACE because it allows me to leverage my background in highly structured capital stacks, restructuring, and in-house debt capital markets. PLG appealed to me because their platform is nimble (completely in-house team with the CEO as head of credit) and they’re willing to work through complicated structures to deliver solutions that add value; they don’t look the other way when an out-of-the-box deal comes across their desk.

Q: How do C-PACE clients’ requirements differ from those of clients with whom you’ve worked in other phases of your career? Would you say those differences are smaller than they would have been a few years ago?

A: The underwriting and credit fundamentals are the same, while pricing, sizing, and certainty of close remain the key differentiators. With C-PACE, it’s typically a capital stack conversation, as clients ask how it sits alongside their senior loan and what happens on a sale or refinance. Those differences are meaningfully smaller than a few years ago as the product has become more common and more senior lenders are consenting. Borrowers and lenders continue to gain awareness of this financing tool, making C-PACE a more commonplace rather than exotic capital source.

Q: C-PACE financing is more generally known today compared to earlier in the decade. Where do borrowers still face a learning curve?

A: One place is timing and how C-PACE plays a role in recaps. Retroactive eligibility for costs already incurred surprises borrowers, as C-PACE can finance improvements completed in the previous 1-3 years, depending on the state. This can provide liquidity for mortgage paydowns and amend/extend strategies. C-PACE can also lower the cost of recap funds by blending down/out more expensive mezz and preferred equity.

Q: Do you see your role more in terms of educating clients or guiding them?

A: Both. Some clients have completed multiple C-PACE transactions and need more of a structuring partner that can help them complete their cap stack, which is where my debt capital markets background comes into play. Others are considering C-PACE for the first time and need guidance on how the product can be used accretively. At PLG, C-PACE is all we do, so I’m able to get into the nitty gritty nuances of C-PACE and the variety of use cases from new construction through stabilization.

Stay ahead of the multifamily market at Connect Apartments. Gain firsthand insights from industry leaders on capital markets, development, operations, financing, and investment trends while expanding your network with the people making deals happen. See you on September 22!