Commercial Property Assessed Clean Energy (C-PACE) is evolving.
Driven by growing deal sizes and innovative structuring, C-PACE is emerging as a foundational, primary source of funding for the nation’s most ambitious commercial real estate projects. At the forefront of this evolution is Bayview PACE, a C-PACE lender pioneering the large-scale application of C-PACE across new construction and complex refinancing deals. We spoke with the Bayview PACE team about the factors driving this shift and how their recent record-setting transactions are cementing C-PACE’s future as a core financing tool.
Landmark transactions
By executing some of the most sophisticated agreements in the industry, Bayview PACE is establishing the blueprint for large, complex C-PACE transactions. Rooted in innovation and experience, their approach–and balance sheet–allows them to manage deals that few others can.
The financing for the Domus Brickell Center project, for example, featured a $180 million C-PACE loan and stands as a powerful example of Bayview’s capabilities. Far from filling a gap in the capital stack, C-PACE acted as the primary lender on the transaction, one the largest C-PACE ground-up construction loans in South Florida, and third-largest nationally.
“I like the term primary lender,” says Anne Hill, Senior Vice President at Bayview PACE, which lends across the U.S. including some of the largest C-PACE fundings to date. “That’s definitely the case on the Domus deal, where a $40 million mortgage exists, but is led by C-PACE, allowing us to provide flexible, efficient financing.”
A key element enabling this scale is Bayview PACE’s ability to employ sophisticated financial structures, like the multi-tranche funding approach used for Domus. This system, which saved the borrower millions in carrying costs, allows Bayview’s financing piece to mimic a traditional construction loan, funding only as needed.
“As the project size grows, it becomes more and more important to fund it in multiple stages,” says A.K Prabhakar, Senior Vice President at Bayview Asset Management. “This prevents the borrower from incurring a lot of accrued interest in funds that aren’t getting put to work, saving them a significant amount of negative carrying cost.”
The capital structure catalyst
The market dislocation of the past few years has created a void in the capital structure in deals across the country, and all product types. Increasingly, US project sponsors and their relationship lenders are turning to this 20-year-old tool as an ideal alternative.
“Whether acting as the primary lender, providing both construction and C-PACE, or partnering with third-party banks and debt funds, we’re leading with C-PACE as a creative, strategic financing solution,” says Prabhakar.
Bayview PACE is well-positioned to act as either the lead lender or participant in partnership with other banks and debt funds. Aiming to maintain a reasonable Loan-To-Value (LTV) ratio, the company recognizes that C-PACE is unlikely to become a high-leverage standalone solution, but that’s not slowing them down. Instead, they’re finding the best opportunities to leverage the innovative financing tool.
“In states like Florida, California, and others where the legislation allows us to use C-PACE to finance both building upgrades and resiliency, we can get to a higher loan amount than we could in some other states,” says Hill.
Increased cooperation from traditional banks is also opening the door to larger, more complex deals. Bayview PACE’s ability to offer competitive pricing and flexible structures has turned former competitors into partners. As deal sizes grow, C-PACE offers banks a compelling alternative to syndication.
“If the deal is larger than what they’re comfortable doing on their own,” says Prabhakar, “PACE can be an attractive alternative to bringing in another bank participant.”
This cooperative approach has proved essential, even for seemingly challenging asset classes like hospitality and office. For the Westin Resort & Spa in Cocoa Beach, FL, Bayview PACE provided $137 million in C-PACE financing, working alongside City National Bank (CNB), which contributed $70 million in senior construction financing.
Bayview also provided $15.6 million in financing for The Lumin, a 103,000 square-foot five-story office building with ground-floor retail in Bryan, TX. The funding will support the construction of the project, and contribute to the fast-growing Bryan/College Station metropolitan area.
“PACE is great for office development,” says Hill, “even if the general market is shying away from that asset class.”
Florida’s C-PACE momentum
The South Florida market is currently the epicenter of C-PACE adoption, driven by Bayview’s leadership in high-value transactions. The recent financing for Miami’s luxury Okan Tower project, involving $200 million of C-PACE as the primary lender, is a clear sign of developers’ widespread embrace of the tool.
“We are pleased to provide this C-PACE financing to help complete Okan Tower’s capital stack and support Okan Group’s objectives,” said Jeff Klar, Vice President of Bayview PACE. “Bayview crafted a creative financing solution that was accretive to the sponsor’s goals and aligned with the project’s construction timeline. This nine-figure C-PACE transaction underscores both Bayview’s structuring expertise and the financial strength of the broader Bayview platform.”
This transaction marks the third within one year in Florida that included over $100 million in C-PACE financing.
“Florida closed over $1 billion of CPACE in 2025,” says Hill. “Bayview PACE alone will be close to $600 million of that. It all reflects how the market is evolving to embrace C-PACE as a powerful solution.”
This adoption is the product of continuous evolution.
“Four years ago we closed the first ever C-PACE deal for condos in Florida, and now it’s becoming mainstream,” Prabhakar says. “Since then we’ve created the multi-tranche funding structure for C-PACE, and continue to innovate on it for more widespread application across jurisdictions and property types, as borrowers continue to reach out to us to explore a capital structure with a C-PACE solution.”
Visit Bayview’s website to learn more about the firm’s C-PACE practice.
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