PLG Closes First N.J. C-PACE Deal With $46M Loan for Atlantic City Water Park
By Andrew Coen January 26, 2026 3:33 pm
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The sharp ascension of Commercial Property Assessed Clean Energy (C-PACE) financing now includes a stop in the Garden State.
Developer Bart Blatstein’s Tower Investments sealed a $45.5 million loan from PACE Loan Group (PLG) to recapitalize its Island Waterpark at Showboat project in Atlantic City. It marks the first deal to close under New Jersey’s newly launched C-PACE program, Commercial Observer can first report. The water park, which opened in June 2023, is adjacent to the former Showboat casino resort property that closed in 2014.
“Being able to retroactively pay down the construction debt with C-PACE provides efficient long-term, permanent financing,” Jerry Ellis, managing director and head of loan structuring at PLG, said in a statement. “With the flexibility of C-PACE, we expect to see significant interest from New Jersey developers.”
Blatstein first outlined plans for his indoor water park in 2016 after acquiring the Showboat for $23 million. He secured a $22.1 million loan from WSFS Bank in November 2021 for the project, enabling construction to commence in 2022.
C-PACE proceeds from the latest loan were used to retroactively fund sustainability measures involving the building’s envelope, lighting, natural gas pool heaters and HVAC system.
The New Jersey C-PACE program was greenlighted in October 2024 and began taking applications in July 2025. It is administered by the Garden State C-PACE Program, which is affiliated with the New Jersey Economic Development Authority (NJEDA).
Blatstein said the loan closed in less than two months and will help achieve the firm’s business goals for the water park in 2026. He worked closely with Max Frank, project lead of the New Jersey C-PACE program, who outlined the advantages of achieving long-term sayings and flexibility through the three-year lookback component of the program
“I’ve been doing this for 48 years and it is probably the easiest loan of that size I have ever done,” Blatstein said. “We were able to get very competitive rates for long-term debt.”
The indoor water park has seen increased visitors since opening, according to Blatstein, drawing a number of people from the Philadelphia and New York City regions in addition to throughout New Jersey.
Blatstein’s indoor water park development has been touted as an example of how Atlantic City can diversify its economy beyond casinos amid increased regional gaming competition.
The New Jersey C-PACE program was greenlighted in October 2024 and began taking applications in July 2025. It is administered by the Garden State C-PACE Program, which is affiliated with the New Jersey Economic Development Authority (NJEDA).
New Jersey joined North Carolina, Idaho and Hawaii in adding active C-PACE programs last year, bringing to 40 the number of states that have enabled legislation for the financing tool, according to PACE Nation. Connecticut implemented the first statewide C-PACE program in 2012.
The NJEDA did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
