PACE Loan Group Supplies $35M Loan for Missouri Production Campus

Gateway Studios & Production Centers (GSPS) has landed $35 million of commercial property assessment clean energy (C-PACE) financing for its planned 32-acre production campus in suburban St. Louis, Commercial Observer can first report.

PACE Loan Group (PLG) provided the 20-year loan on the 300,000-square-foot studio complex in Chesterfield, Mo., that will comprise five soundstages supporting rehearsal and production services for concert tours. The $111 million project, which broke ground in 2022 on vacant land at 900 Spirit of St. Louis Boulevard, is opening in phases, with one of the studios set to accept bookings in spring 2025.

Robbie Pinkas, senior vice president at PLG who originated the loan, said the C-PACE structure was an ideal fit for the project given the cost savings associated with long-term debt. The deal, which was authorized by the St. Louis County Clean Energy Development Board through the Missouri Energy Savings Program, marks the largest C-PACE loan in Missouri to date, according to PLG. 

“The unique asset class meant traditional construction financing options were expensive, and the sponsor valued the optionality of a nonrecourse, long-term, and self-amortizing loan,” Pinkas said in a statement. “It’s always nice when the business plan aligns with the product.” 

The C-PACE transaction will fund energy-efficiency measures with the development that are projected to yield more than $50,000 in annual savings over the course of the loan, according to PLG. 

The GSPS project will feature five soundstages, including what the company is touting as the world’s largest. The soundstages will have supporting infrastructure geared for live events, rehearsals and production in addition to housing film sets and special events. The property will also consist of a three-story office wing for GPS executives and staff. 

The facility was orchestrated by GSPS CEO Trey Kerr, who mapped out the project with the goal of creating a central location for musical artists to build productions before moving them across the U.S. for tours, the St. Louis native told St. Louis Magazine in August 2021. 

“Gateway Studios is destined to become the greatest place to start an artists’ tour, a place  where innovation and ideas come together to make rock  ’n’ roll history,” Kerr said in a statement following the closing of the C-PACE loan. 

Founded in 2017, PLG has institutional backing for direct C-PACE loans from funds supported by AB CarVal, a subsidiary of Alliance Bernstein. 

Andrew Coen can be reached at acoen@commercialobserver.com