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$6,700,000 in C-PACE Financing, $14,400,000 Construction Debt for a 53-Unit Garage Condominium Project; Dallas-Frisco, TX

C-PACE 

Rate: 10 Year UST + 3.75%

Term: 5 Years

Amortization: 30 Year

LTC/LTV: 35%/25% Qualified C-PACE Cost Measures

Prepayment: Stepdown

Guaranty: Non-Recourse

Transaction Description: 

George Smith Partners successfully arranged $6,700,000 in C-PACE financing, complemented by $14,400,000 in fixed-rate construction debt, to fund a new 53-unit luxury garage condominium project in Frisco, Texas. Spanning over 5 acres in an affluent Dallas suburb, this innovative project combines cost-effective financing with a focus on sustainability.

Utilizing C-PACE, an innovative financing solution, GSP ensured low-cost capital for the Sponsor. This approach not only aligns with energy efficiency and conservation standards but also offers financial benefits. Amidst high federal fund rates and market volatility, C-PACE enabled a reduction in capital costs and equity contributions, enhancing investor yields compared to other financing methods, as noted by GSP’s Director, Robert Horton.

The Sponsor, a leading developer in the Dallas-Fort Worth area with a track record of 4.2 million square feet in garage condos and similar projects, sees significant growth potential in this niche market. Their garage condominiums cater to diverse storage needs, offering climate control, power, security, and 24/7 access. Drawing parallels with the evolution of self-storage into a multibillion-dollar industry, they anticipate a similar trajectory for garage condominiums, positioning themselves at the forefront of this emerging market.

This is the first project to break ground in Q1 2024, with GSP assisting in obtaining financing for upcoming sites set to be delivered later in 2024 throughout the Dallas Fort-Worth Metroplex with locations in Tarpley, Rockwall and Garland.

Advisors

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