ATLANTA — Officials of Stonehill recently announced the company has secured financing for $100 million of Property Assessed Clean Energy (PACE) lending for all commercial real estate asset classes. The additional, privately-funded capacity already is being used to retroactively fund multiple development projects impacted financially by the on-going coronavirus pandemic.
“With the economy currently on hold and sources of financing, like the Paycheck Protection 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,” said Mat Crosswy, principal, Stonehill. “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,” Crosswy continued. “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.”
Among recent Stonehill PACE loan recipients is the Homewood Suites by Hilton in Dillon, Colorado. The 117-room, extended-stay 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.
“These are trying times for virtually everyone, and unfortunately, financing is one of the hardest-hit corners of the economy,” said Anne Hill, president, Stonehill PACE, a division of Stonehill. “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.”