Peachtree Closes $52M C-PACE Loan for California Townhomes
By Andrew Coen February 27, 2025 12:41 pm
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STG Capital Partners has landed $51.5 million of Commercial Property Assessed Clean Energy (C-PACE) financing to enact sustainability upgrades at a California townhome asset, Commercial Observer has learned.
Peachtree Group originated the 30-year C-PACE loan for the developer’s The Reserve at Vindo townhome community in Paso Robles, Calif. Loan proceeds will be used to fund exterior building upgrades, improve the HVAC system, install solar panels, plumbing and make seismic improvements, along with soft costs incurred during the construction process for Phase 2 of the development slated for completion this year.
Jared Schlosser, Peachtree Group’s senior vice president, noted that the project has strong sponsorship behind it in Adam Tancredi, managing partner at STG, whose family has been in the homebuilding and real estate business for 70 years. Peachtree also closed a previous C-PACE loan for the first phase of the 224-unit complex, which Schlosser said came in on time and under budget despite challenging building conditions in California, which has stricter development rules than other states.
Peachtree also owns three hotels in Paso Robles via its equity platform, which Schlosser said helped give him confidence to complete the loan, which is the largest C-PACE deal Peachtree has ever originated.
“That allowed us to do this initial Phase 1 because we just understood the market really well and then allowed us to eventually do this Phase 2,” Schlosser told CO. “We had a lot of expertise on the equity side of the overall market of Paso and what’s going on there, so that allowed us to be nimble on the PACE side and increase our exposure in a project that thus far has been very successful.”
Located at 3138 Linne Road, the townhome development is within a 280-acre master-planned Vinedo community that will eventually include a total of 1,425 homes, according to Peachtree.
Officials at STG Capital did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
