LOS ANGELES - The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP (JMBM) is pleased to announce that their team has completed $210 million in C-PACE (Commercial Property Assessed Clean Energy) financing transactions in the past 12 months, for hotel, retail and multi-family real estate clients. Led by Senior Partner David A. Sudeck, the Group has worked on both the lender and borrower side of these transactions, and has represented some of the leading names in PACE financing.

"David and his team have been structuring these transactions since the beginning of the C-PACE program, and have developed an expertise in this area of financing," said Jim Butler, Chair of JMBM's Global Hospitality Group®. "This type of financing has become especially beneficial for clients during unpredictable economic fluctuations due to COVID."

C-PACE is a low-cost, nonrecourse financing that creates a lien on the real property and is repaid through property taxes. In most cases, there is no balance sheet or personal liability of the owner or developer. Over the past several years, C-PACE financing has gained wider acceptance, and moved from a novel technique to a widely-accepted, practical solution to financings.

"Over the years, C-PACE has become an increasingly recognized part of the financing toolkit; the COVID downturn motivated lenders to become familiar with PACE in the capital stack," said Sudeck. "As a result of that familiarity, we find that these same lenders are embracing the inclusion of PACE financing as an important part of a post-COVID marketplace."

According to PACENation, an industry organization, C-PACE fundings in the United States have totaled about $1.5 billion since states began implementing the program; deals handled by Sudeck and his team account for a significant percentage of all C-PACE transactions in the country. Of the 18 deals completed in the last year, 12 were hotels, including a $23.8 million loan for a Napa, CA resort, a $42 million loan for a newly constructed downtown Los Angeles hotel, and a $10 million loan for two hotels in Sunnyvale, CA.

The Global Hospitality Group® continues to offer resources related to C-PACE financing through its website, where analysis and education about the program is available. With Jared Schlosser, head of Stonehill PACE, Sudeck and Butler hosted a free webinar exploring why C-PACE may be a good option for commercial real estate, which is available on demand.

About the JMBM Global Hospitality Group®

The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.

Jim Butler
+1 310 201 3526
JMBM