Stonehill secured financing for $100 million of property assessed clean energy (PACE) lending for all commercial real estate asset classes. The additional privately-funded capacity is being used to retroactively fund multiple development projects impacted financially by the on-going COVID-19 pandemic.
“With the economy currently on hold and sources of financing, like the Paycheck Protesction Program, drying up almost as quickly as they come online, PACE financing is a clear alternative for everyone from developers looking to restart temporarily stalled projects to owners seeking additional operating expense capital for already completed assignments,” Mat Crosswy, principal at Stonehill, said. “Currently, we are fielding increased requests as developers contend with everything from mezzanine financing walking away from deals to the need for rescue capital.
“As direct lenders with the ability to close funding quickly and on schedule despite COVID-19 disruptions, we are doing deals right now for all asset classes. To date, we’ve provided funding for multi-family and hotel projects midway through the construction process and expect to process millions of dollars more in short order.”
Recent Stonehill PACE loan recipients include:
- Homewood Suites by Hilton in Dillon, CO. The 117-room hotel received retroactive financing mid-construction. Stonehill PACE funded the loan directly to the senior lender for improvements that had been completed during construction. Most of the PACE funds were used to provide the project with envelope and electrical improvements.
- Pearl Point Apartment Homes in Rockport, TX. The first and largest multi-family housing unit started to help alleviate the housing crisis that followed Hurricane Harvey, the property received PACE financing that allowed developers to complete financing and begin construction on urgently needed rental housing. PACE financed certain improvements that reduced Pearl Point’s projected energy and water use.
_x000D_
_x000D_
“These are trying times for virtually everyone, and unfortunately, financing is one of the hardest hit corners of the economy,” Anne Hill, president of Stonehill PACE, said. “However, we have the financial capacity and team of experts to help owners and developers navigate these turbulent waters together. We are confident that this crisis, too, shall pass, and we are here to provide a financial lifeline to tide people over during the interim.”
Stonehill PACE is a direct lender for property assessed clean energy (PACE) financing and a division of Stonehill, which is primarily focused on funding permanent loans, bridge loans, mezzanine loans and preferred equity investments backed by limited-, select- and compact full-service hotel assets.
