$64.8M in Texas PACE Financing Closed by Lone Star PACE in H1 2026
Event summary
- $64.8 million in Texas PACE Program financing facilitated by Lone Star PACE during the first half of 2026.
- Six transactions closed across hospitality, retail, industrial, data centers, and specialty development properties.
- Projects expected to deliver over 3.3 million kWh of annual energy savings and 3.5 million gallons of annual water savings.
- C-PACE financing can fund up to 35% of a project's capital stack for new construction, redevelopment, and retrofit projects.
The big picture
Lone Star PACE's $64.8 million in H1 2026 financing underscores the growing role of C-PACE in strengthening project capital stacks while promoting sustainability. The Texas PACE Program addresses critical market priorities—improving project economics and reducing long-term resource consumption—which positions it as a key player in the state's commercial real estate landscape. With demand expected to persist, the program could further solidify its position as a catalyst for sustainable development across Texas.
What we're watching
- Demand Growth
- Whether the momentum in C-PACE financing will continue through the second half of 2026, given several large-scale projects already in the pipeline.
- Market Penetration
- The pace at which C-PACE financing adoption will expand beyond current property types to include more diverse commercial real estate sectors.
- Regulatory Impact
- How potential changes in Texas's regulatory environment could affect the scalability and attractiveness of PACE programs for future projects.