News
Alternative Financing · C-PACE · Commercial Real Estate · Private Credit
Ares Alternative Credit has committed up to $300 million in financing to Clearwater PACE, enabling the commercial real estate lender to significantly expand its C-PACE platform for energy efficiency and resiliency upgrades across various property types.
This capital infusion will allow Clearwater to target larger fixed-rate C-PACE transactions, typically ranging from $40 million to $50 million, for hospitality, multifamily, mixed-use, and adaptive reuse properties. The financing vehicle addresses the current market environment where developers increasingly seek alternative funding sources due to tighter traditional lending conditions.
C-PACE loans, which fund energy efficiency and resiliency upgrades through a property-attached tax assessment, are attractive to institutional investors for their long-duration, senior-secured nature. Jonathan Seabolt, CEO of Clearwater, stated this initial close validates institutional demand for C-PACE loans and positions Clearwater for significant market share growth.
The article highlights the C-PACE market's rapid institutionalization, with origination volume exceeding $3 billion in 2025, according to Clearwater. Ares Management, with nearly $623 billion in assets under management as of December 31, 2025, demonstrates a growing appetite for niche real estate lending strategies offering yield, collateral protection, and ESG-linked demand drivers.
Clearwater, a subsidiary of AXCS Capital, will leverage this funding to scale its operations as private credit firms increasingly compete with banks for real estate financing opportunities.
