C-PACE lending is continuing its meteoric rise. According to the C-PACE Alliance, the overall volume of transactions since the program’s inception grew to $9.8 billion by the end of 2024—$2.5 billion of that was transacted last year alone. Meanwhile, the average transaction size rose from $2.1 million to $2.57 million, even as the actual number of deals reported to C-PACE Alliance fell from 250 to 225.

While C-PACE is a proven tool across product types, hospitality and multifamily were among the popular sectors.

One of the largest hotel C-PACE financings in 2024 was Bayview’s $137 million funding in December for Driftwood’s Westin Resort Cocoa Beach. It was the largest-ever C-PACE financing in Florida and the third-largest hotel deal in the U.S.

There’s growing adoption of C-PACE for apartments as well, with more use cases showing its varied application. In Yonkers, N.Y., just outside New York City, a 17-year-old multifamily property was able to utilize C-PACE for financing energy and resilience improvements. The deal points for the $3.5 million financing included: PACE LTV of 6.3 percent, CLTV of 84.6 percent, a capitalized interest period of 17.25 months, a 24-month interest-only period and a 17-year amortization.

The states enabling C-PACE grew in 2024, with legislation now in place in 40 states including Washington D.C.

C-PACE is also taking a larger role in the debt-stack. Last year, Bayview funded a multifamily property in Los Angeles where half of the debt came from C-PACE and half from traditional construction financing. That’s most common in states where resilience and water system upgrades are part of C-PACE programs in addition to energy features, allowing for a higher loan-to-cost and attractive weighted-average cost of capital.