Dealmaker: Pace Loan Group Closes $35M C-Pace Loan in Missouri

(Rendering courtesy of Pace Loan Group)

Pace Loan Group, Minneapolis, closed a $35 million C-PACE loan for a studio complex in Chesterfield, Mo., a suburb of St. Louis.

The loan is Missouri’s largest PACE project financed to date. It was authorized by the St. Louis County Clean Energy Development Board through the Missouri Energy Savings Program.

The transaction was arranged by Senior Vice President Robbie Pinkas.

“PACE worked for a variety of reasons on this deal: the unique asset class meant traditional construction financing options were expensive, and the sponsor valued the optionality of a non-recourse, long-term, and self-amortizing loan. It’s always nice when the business plan aligns with the product,” Pinkas stated.

The 20-year assessment will be used to finance energy conservation measures, which are expected to save more than $50,000 annually over the course of the loan.

“MO-ESP, St. Louis County’s PACE Program, provides a channel for local businesses to finance energy conservation and renewable energy investments at their property. MO-ESP worked closely with PACE Loan Group to complete the energy assessment and to ensure that the loan met all of the requirements of the Missouri PACE Act necessary for C-PACE funding,” PACE Loan Group stated in a release.

Construction on the 300,000-square-foot project began in August 2022, and will be completed in stages. Called Gateway Studios & Production Services, it will include five sound stages, including the world’s largest, and is geared toward the live events industry, along with rehearsal and production services for arena tours, among other offerings.