PACE Equity has introduced a new financing solution designed specifically for the needs of larger developments and recapitalizations, including projects needing $50 million or more. The new solution solves large-asset challenges by offering more competitive pricing and flexible prepayment options.

Built on the C-PACE model, the solution serves as a lower-cost alternative to bridge or mezzanine loans, with fixed rates, the ability to defer payments for up to four years, and the flexibility developers need to complete construction, stabilize assets, and execute business plans.

“With interest rates remaining high and nearly $1 trillion in commercial debt maturing in 2025, developers are increasingly being forced into costly short-term financing,” said Ethan Elser, executive vice president of PACE Equity. “The ability to prepay at par on a short-duration basis is a highly attractive option in today’s market.”

PACE Equity recently funded $63.3 million mid-construction through the solution for a luxury hospitality and mixed-use development in Deer Valley, Utah. The PACE Equity financing was more than 40% LTC.