C-PACE Financing Jumps 63% Year-Over-Year to $3.6 Billion
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C-PACE financing volume grew from $2.2 billion in 2024 to $3.6 billion last year, a 63% jump, according to a new report from Bayview PACE, Coral Gables, Fla.
The report noted large transactions are now well over $100 million and the largest transaction last year was just shy of $500 million.
Product-type uses continue across commercial property types with multifamily and mixed-use among the most popular, Bayview said.
“C-PACE hit a turning point last year as banks and other institutions almost routinely accept this financing, and borrowers are reach out in growing numbers to see how it can complete their capital stack,” said Anne Hill, senior vice president of Bayview PACE, a unit of Bayview Commercial Mortgage Finance.
Among the report’s major takeaways:
• The average loan size increased from $19 million to $39 million, with the largest transactions between $100 million and $500 million.
• Florida recorded the most C-PACE lending in 2025, driven largely by several condo/hotel/mixed-use developments in Miami and South Florida.
• While Florida was the most active last year, historically Texas, California and Florida have been leaders at the state level.
• A Washington DC office-to-residential conversation was the largest single transaction at $465 million.
• New York City, which accounts for the highest-density commercial real estate in the U.S., saw its C-PACE program achieve important refinements that boosted activity in 2025.
• A new iteration of C-PACE is combination-financing, where the PACE lender provides both the C-PACE and construction project financing.
Hill noted she has seen broader adoption across the commercial property community–borrowers, lenders and brokers. “Even industry groups like the Mortgage Bankers Association, Urban Land Institute and others are talking about C-PACE, sponsoring discussions and enhancing understanding of its capabilities,” she said.
“The rate-spreads for C-PACE in conjunction with other financing has also been tightening significantly,” Hill added. “And we’ve seen PACE program guidelines expand in terms of application beyond energy, HVAC, water/wastewater systems and building envelop to include resiliency measures in many states. The broader applications allow C-PACE to finance more construction components and achieve higher loan-to-cost and loan-to-value benefits.”
