Clearwater PACE Secures Up to $300 Million to Expand C-PACE Financing Platform

CLEARWATER PACE has announced the initial close of an up to $300 million C-PACE financing vehicle with capital provided by Ares Alternative Credit funds. The vehicle enables Clearwater to deploy balance sheet capital into large-scale C-PACE financings across hospitality, multifamily, mixed-use, and adaptive reuse projects.

The structure is designed to capitalise on the long-duration, low-risk characteristics of C-PACE loans and targets fixed-rate, long-tenor financings of $5 million or greater, with a target check size of approximately $40–50 million per transaction. C-PACE allows property owners to finance energy-related upgrades through a tax assessment tied to the real estate itself, creating a long-duration, senior-secured instrument.

As commercial real estate capital markets continue to correct, sponsors are pairing C-PACE with traditional first lien, mezzanine, and preferred equity capital sources across a broad range of asset classes. C-PACE reduces the senior lender’s basis and enables more efficient capital structures. In most jurisdictions, C-PACE can be deployed for new construction, value-add renovations, and post-construction recapitalisations.

Jonathan Seabolt, CEO of Clearwater, said, “C-PACE has evolved from a niche green financing product into a highly compelling balance sheet solution for borrowers. This initial close validates the institutional demand for C-PACE loans and further positions Clearwater to capture meaningful market share in an asset class that exceeded $3 billion of origination volume in 2025. This vehicle provides the scale and duration required to execute repeatable, large-balance transactions.”

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