Image by Ramon Perucho from Pixabay
C-PACE (Commercial Property Assessed Clean Energy) is experiencing “massive growth” in 2026, shifting into mainstream commercial real estate finance with record-breaking deals. Driven by sustainability goals and liquidity constraints, it is increasingly used for large-scale retrofits, conversions, and new developments across the US, with nearly $10 billion invested by the end of 2024. In 2026, C-PACE financing has moved from a niche alternative to a mainstream capital stack staple, with record-breaking deal sizes and expanding adoption across the U.S. commercial real estate
Key 2025–2026 C-PACE News and Highlights:
- Record-Setting Deals: In 2026, Nuveen Green Capital closed a record $465 million C-PACE loan for The Geneva, a landmark D.C. office-to-residential conversion.
- Earlier, they closed a $290 million loan for a Tampa, FL mixed-use tower.
- Major Hospitality Funding: Peachtree Group closed a $176.5 million C-PACE loan for the Rio Hotel & Casino in Las Vegas.
- NYC & New Construction Growth: CounterpointeSRE closed New York’s first new-construction C-PACE loan ($156M for Echelon Studios).
- North Bridge is focusing on new construction in 2026 across the country.
- Office Conversions & Regional Growth: PACE Loan Group funded $100M for a Kansas City office-to-AI campus conversion.
- Nuveen Green Capital recently closed the first-ever C-PACE project in North Carolina.
Market Adoption: C-PACE policies exist in 40 states, with over 32 active programs. Texas, which increased loan-to-value (LTV) limits to 35%, is seeing, for instance, a record $48 million in total C-PACE financing for the Hotel InterContinental in San Antonio.
Ongoing Trends: C-PACE is increasingly used for large-scale, high-complexity projects and, according to, is becoming a vital, mainstream component of the capital stack in 2026.
Recent Market Developments
- Record Deal Sizes: Average C-PACE deals have jumped from roughly $800,000 in 2017 to $40 million in 2026.
- Institutional Maturation: Major players like Nuveen Green Capital reported originations topping $2.1 billion in 2025 alone, signaling broad lender acceptance.
- Capital Stack Integration: Owners are increasingly using C-PACE to reduce weighted average cost of capital (WACC), typically securing fixed non-recourse rates around 6.5-7.5% compared to senior debt pricing often exceeding 10% or mezzanine (12-24%).
Regional News & Legislative Updates
- New York City Growth: Recent activity includes C-PACE debt inked for multiple New York co-ops to fund compliance with greenhouse-gas emission mandates.
- State Expansion: Alabama has recently smoothed the road for financing, while New Jersey closed its first C-PACE loan for the Island Waterpark in Atlantic City at $45.5 million.
- Regulatory Drivers: Increasingly stringent building codes, such as NYC’s Local Law 97, are driving demand as more than 30 cities prepare to implement carbon standards by 2026.
We’re currently at the 2026 PACENation Summit. Stay tuned for more news and updates.