Bayview Closes on Combined
Innovative C-PACE and Construction Loan Package for
$63.5 Million Mixed-Use Development in Florida
First of its kind finance combination of C-PACE and traditional construction mortgage kick-starts
153-unit mix-use project next to Florida State University, Tallahassee
Coral Gables FL and Tallahassee FL (Feb. 6, 2023) – Bayview Asset Management (“Bayview”) today announced the closing of an innovative $63.5 million loan combination package that will be utilized for the construction of a 153-unit student housing & retail project along with an adjacent 308-stall parking garage in Tallahassee, just blocks from Florida State University. Bayview originated the loans via one of its long-standing mortgage brokerage relationships and funded the entire debt stack through its wholly owned subsidiaries Bayview PACE and Oceanview Life and Annuity Co. (“Oceanview”).
The fully amenitized Renegade Apartments, at 501 Chapel Dr., is a joint venture of Charles Street Development Co. LLC and ACRES Realty Funding, Inc. The project, designed by Humphreys & Partners with Ruscilli Construction Company as contractor, is expected to be completed in summer 2024 with pre-leasing planned for Fall 2023. Asset Living will handle leasing and property management.
Typical financings in the C-PACE industry can hit headwinds through underwriting and in obtaining consent from senior mortgage holders. The packaging of a $48 million Oceanview construction loan and $15.5 million in C-PACE financing from Bayview PACE makes the consent issue moot as the underwriting is managed under one umbrella, and Oceanview is the consenting senior lender. Bayview PACE and Oceanview, part of the family of Bayview Asset Management, are uniquely positioned to structure more of these package loans for the growing demand in commercial real estate amid tightening debt markets, according to the firm.
“We believe there are increasing numbers of companies facing delays if not hitting ‘pause’ on their projects, and our loan-combination can help optimize the capital stack and get things back on track,” said Matthew Philip, the New York-based Head of Commercial Lending for Bayview.
“Originating this new-construction financing via two Bayview products demonstrates our depth and strength in execution, and we are already working on more such deals,” added Marco Lainez of Bayview.
“We are excited to have closed this major transaction that signals an important solution for the commercial real estate industry,” said Senior Vice President Anne Hill of Bayview PACE. “C-PACE offers unusual flexibility and beneficial terms for qualified improvements in energy, lighting, water systems, building envelopes and other resiliency components. Packaged with construction financing, it’s an ideal solution. Our end-to-end financing capabilities leverage the expertise of our team and strength of our network to deliver a market-leading solution for commercial real estate projects of all kinds, from student, senior and multi-family housing to industrial, hospitality, retail, office, mixed-use and more.”
Commercial Property-Assessed Clean Energy financing (C-PACE) helps unlock capital for property owners to make energy-efficient and renewable building upgrades, fund new construction and provide rescue capital towards recovery from the pandemic. With program legislation currently enabled in 37 states, C-PACE is quickly growing in popularity among real estate owners and financial institutions looking to serve them.
About Oceanview Life and Annuity Co.
Oceanview Life and Annuity Company (“Oceanview Life”) is an insurer based in Phoenix, AZ rated A- by AM Best and is a wholly owned subsidiary of Oceanview Holdings Ltd. Oceanview Life provides high-quality retirement products and services to its policyholders and maintains financial protection over the life of their policies. Oceanview offers fixed annuities that are distributed through networks of agents, banks, and broker-dealer intermediaries in select states. Oceanview Life takes a low-operating-cost approach, and follows a thoughtful and opportunistic investment approach emphasizing US residential and commercial mortgage markets. For more information, visit https://oceanviewlife.com.
About Bayview PACE
Bayview PACE offers creative financing solutions that combine construction, bridge and CPACE lending. Unlike most PACE-only providers, Bayview PACE works with commercial property owners and developers to provide a full capital stack solution. Bayview PACE is a division of Silver Hill Funding, LLC. NMLS# 1564077 www.nmlsconsumeraccess.org Please visit www.bayviewpace.com.
##