C-PACE Financing for New Construction

Flexible, long-term capital for ground-up commercial development

How Regional Banks Can Win More CRE Deals with C-PACE

C-PACE can provide a meaningful layer of the capital stack for qualifying new construction projects, helping developers reduce reliance on higher-cost capital while preserving equity for other project needs.

Bayview PACE brings C-PACE and traditional commercial real estate lending together under one institutional platform. As a direct balance-sheet lender, Bayview can provide C-PACE financing alongside construction or bridge capital for qualified projects.

Financing for qualified commercial projects generally starting at $10 million.

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How C-PACE Fits Into a New Construction Capital Stack

For ground-up development, C-PACE can sit alongside senior construction financing and sponsor equity to fund qualifying project costs.

By introducing long-term, fixed-rate C-PACE capital into the financing structure, developers may be able to reduce their dependence on higher-cost sources of capital and create a more efficient overall financing structure.

Potential benefits include:

  • Long-term, fixed-rate financing
  • Non-recourse capital
  • Reduced reliance on mezzanine debt or preferred equity
  • Lower blended cost of capital
  • Greater flexibility within the project capital stack
  • Financing for qualifying hard and soft cost
  • Ability to coordinate C-PACE with construction financing

One Platform for C-PACE and Construction Financing

Many C-PACE providers focus exclusively on the C-PACE portion of a transaction.

Bayview takes a broader view of the capital stack.

As part of Bayview’s commercial real estate lending platform, Bayview PACE can provide C-PACE financing while also evaluating construction and bridge financing needs.

For developers, this can create a more coordinated approach to:

  • Capital stack structuring
  • Underwriting
  • Construction financing
  • C-PACE sizing
  • Closing
  • Draw administration
  • Senior lender coordination

Whether Bayview provides one component of the financing or a broader solution, our team approaches C-PACE in the context of the entire transaction.


What Can C-PACE Finance in New Construction?

C-PACE financing can cover a broad range of qualifying costs associated with the design and construction of a commercial property. Eligibility varies by state and local program, but qualifying costs may include both hard and soft costs.

  • HVAC and mechanical systems
  • Electrical, lighting and controls
  • Plumbing and water systems
  • Elevators
  • Roofing, windows and insulation
  • Exterior envelope components
  • Storm protection
  • Flood mitigation
  • Seismic improvements
  • Other qualifying structural or resiliency measures
  • Architecture and engineering
  • Permitting
  • Professional fees
  • Other qualifying development costs

Eligibility and financing limits vary by jurisdiction. Bayview evaluates qualifying costs as part of the overall financing analysis.

When Should C-PACE Be Added to a Construction Capital Stack?

C-PACE does not have to be an afterthought. Developers can evaluate it during the initial financing process or, depending on the applicable program and project status, during construction.

Consider evaluating C-PACE when:

  • The project requires additional capital to complete the financing structure
  • Mezzanine debt or preferred equity is increasing the project’s cost of capital
  • The sponsor wants to reduce the amount of equity required in the project
  • A construction lender is limiting proceeds
  • The project contains significant qualifying building costs
  • The developer wants long-term fixed-rate capital within the original financing structure
  • Construction is already underway and additional capital is needed
C-PACE Expands 1 State, 1 Upgrade at a Time

C-PACE for Large Scale Development

Okan Tower

Miami, FL
Mixed-Use Development
$200,000,000 C-PACE Financing

Domus Brickell Center

Miami, FL
Condominium Development
$180,000,000 C-PACE Financing

Westin Cocoa Beach

Cocoa Beach, FL
Hospitality Development
$137,000,000 C-PACE Financing

How New Construction C-PACE Financing Works

1. Project Review

Bayview reviews the development, location, project budget, capital stack and financing needs.

2. C-PACE Sizing

Qualifying project costs and applicable program requirements are evaluated to determine potential C-PACE proceeds.

3. Capital Stack Structuring

Bayview works with the sponsor and other financing parties to determine how C-PACE fits alongside construction debt and equity.

4. Program and Lender Coordination

Required program approvals, third-party reports and senior lender consent are coordinated as part of the transaction.

5. Closing and Funding

The C-PACE financing closes and funds according to the approved transaction and construction structure.

Ready to get started with
C-PACE Financing?

 Or do you have additional questions? Connect with our team.

Ready to get started with C-PACE Financing?

Connect with our team!