X-Caliber, CastleGreen Lend $26M for Buffalo Apartments Project

Start spreadin’ the news: A Western New York developer has its “Ol’ Blue Eyes” on a mixed capital stack to finance a rental housing project. 

Developer Sinatra & Company has sealed $26 million of construction financing blended with Commercial Property Assessed Clean Energy (C-PACE) debt to build a mixed-use multifamily development in Downtown Buffalo, Commercial Observer has learned.

X-Caliber originated a $14.8 million senior construction loan while its affiliate, CastleGreen Finance, supplied $11.2 million of C-PACE financing for the Buffalo-based developer’s  61-unit Heritage Point project.

“By pairing long-term, fixed-rate C-PACE with a shorter-term floating loan, we were able to create a more balanced structure that gives the project both stability and flexibility while lowering the overall cost of capital,” Michael Spachman, executive director, head of western originations at CastleGreen Finance, said in a statement. 

JLL arranged the debt package with a capital markets team led by Jillian Mariutti. The deal, which features short-term floating-rate senior debt combined with a 25-year, nonrecourse fixed-rate C-PACE loan, provided flexibility in a higher interest rate environment, according to Mariutti.

“This transaction highlights how C-PACE financing can be a critical tool in today’s capital markets environment,” Mariutti, managing director at JLL, said in a statement. “By incorporating long-term, fixed-rate capital into the stack, we were able to enhance proceeds, improve execution certainty and deliver a more efficient overall cost of capital for the borrower.”

Located at 120 Main Street in Buffalo’s Canalside district, Heritage Point will consist of two six-story buildings with 61 apartments and roughly 30,000 square feet of commercial space. The project is slated for completion in the third quarter of 2027. 

“It will meet growing demand for Class A housing as Buffalo continues to benefit from strong job growth, in-migration and the momentum of its downtown revitalization,” Nick Sinatra, founder & CEO of Sinatra & Company, said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com.