The Boardwalk, a two-phase short-term rental condominium under construction in Traverse City, Michigan, received nearly $4 million in C-PACE financing through PACE Loan Group. The first phase received $1.7 million in early 2023 and has an expected completion date in March 2024; the second phase received $1.8 million and begins construction this month with an expected completion date of the second quarter of 2024.

Phase I consists of 42 total units, which include five commercial retail spaces on the first floor. The second phase is a five-story, short-term residential condominium building with 48 rentable units without first-floor retail.

The senior lender for both C-PACE loans was a local credit union. “The C-PACE financing enabled the project to get credit for operational efficiencies built into the original construction plan while right-sizing the capital stack,” said Bali Kumar, COO of PACE Loan Group.

The PACE proceeds will be used to finance energy conservation and renewable energy measures expected to save $120,140 annually in a payback period of 13.5 years. The PACE program is administered in a private/public partnership through Lean and Green Michigan.

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