Innovative C-PACE Funding, Gaining Popularity Amid Tight U.S. Financing Market, Fills Key Role in New 324,500 Square-Foot Facility Consolidating 8 Master’s Locations.
Coral Gables, FL and Kansas City, MO (July, 2024) – Bayview PACE today announced providing $20.5 million in C-PACE financing for construction of a $72 million, 324,000 square-foot headquarters and flex/industrial facility for Master’s Transportation in Kansas City, MO. The Commercial Property-Assessed Clean Energy financing (C-PACE) provided a complementary role in the capital stack of the development, which is now under construction toward a 2025 opening. Other financing includes a $31 million construction loan and $20 million in sponsor equity.
Master’s is one of the largest bus and transportation fleet operators of its kind in the U.S., serving 26 states. Founded in 1992, the firm has vertically-integrated operations across its dealership, rental/leasing, and repair/refurbishment lines of business.
Bayview’s C-PACE financing offers favorable and cost-effective terms for qualified improvements in energy, lighting, water systems, building envelope and other resiliency components, and it can be applied to new construction as well as renovations.
“In today’s banking landscape, finding willing participants can be challenging. In this transaction, PACE was used in place of a participant bank.
PACE offers a compelling alternative because our pricing is in line with bank pricing, we are non-recourse, there are no intercreditors/voting rights, and we can help banks build their deposits.
Creative combination financings that include C-PACE are becoming a more standard bridge-finance and construction-finance solution, especially during tight lending and interest rate environments,” said Anne Hill, SVP of Bayview PACE.
Located at the intersection of 150 Highway and Prospect Rd. 20 miles south of downtown, the new facility will consolidate eight other locations, providing greater efficiency and room for growth.
General contractor for the project is Kansas City-based Miller Stauch Construction Co. and Eskie & Associates is owner’s representative. Design is by Finkle + Williams Architecture also of Kansas City.
C-PACE financings to date in the U.S. exceed well over $7 billion, according to PACEnation. It has been approved through legislation in 39 states, gaining popularity among real estate owners and the financial institutions looking to serve them.