Texas PACE Authority closes its largest single-day transaction to date, supporting two interconnected components of the landmark Fredericksburg development

The Meuse reached another milestone in Fredericksburg on September 29, 2026. Approximately $68.6 million in TX-PACE financing closed for its Kimpton hotel and retail components. The closing represents the largest single-day transaction in Texas PACE Authority’s history. It also shows how TX-PACE can evolve with a complex development. This flexibility helps projects adapt to changing capital needs and keep moving forward.

The story began last year. The Meuse became the first Texas project to use a multi-tranche TX-PACE financing structure. This approach released PACE capital in stages to match the development’s construction schedule. The initial tranche of approximately $780,000 closed in August 2025. It marked the first step toward a planned $53.2 million TX-PACE financing for the Kimpton hotel.

The original PACE lender subsequently withdrew from the transaction. Nuveen Green Capital then worked with the developer to restructure the hotel’s capital stack. The new structure refinanced the existing TX-PACE assessment and supplied the remaining hotel capital. It also brought The Meuse’s retail component into the financing. The original TX-PACE structure had covered only the hotel.

On September 29, both financings closed, totaling approximately $68.6 million. Nuveen Green Capital provided approximately $53.2 million for the Kimpton hotel and $15.4 million for The Meuse Retail.  The financing supports two interconnected pieces of a larger vision.

That matters because the vision for The Meuse extends beyond a hotel.

"It was an honor to partner with DC Partners and TPA once again to capitalize this landmark property and C-PACE transaction in the burgeoning city of Fredericksburg," said Sean Ribble, Senior Director of Originations at Nuveen Green Capital -NGC. "NGC's C-PACE financing continues to provide sponsors with flexible capital structures, enabling notable transactions such as this one to move forward. We are proud that our team was able to create a structure that could accommodate the project's needs while providing accretive financing."

A Development Designed as a Destination

DC Partners is developing The Meuse, a large-scale mixed-use destination on the west side of historic Fredericksburg. Plans combine hospitality, retail, dining, entertainment and meeting space. The setting will complement the character of the Texas Hill Country.

“At DC Partners, we have built our foundation on more than designing and developing landmark projects. We are equally focused on how those projects are capitalized and financed,” said Acho Azuike, Chief Operating Officer of DC Partners. “We believe designing the capital stack is just as important as designing the buildings themselves. A strong financing strategy gives a project flexibility and the financial foundation to succeed. The Meuse is a great example of how strategic capital structuring can support a landmark development.”

The hotel component will feature a 212-room Kimpton boutique hotel, restaurants and bars, and a resort-style pool deck. It will also offer indoor and outdoor meeting and event space.

The retail component adds another important dimension to that vision. The Meuse Retail consists of 13 buildings totaling approximately 76,600 square feet. These buildings create space for destination retail, restaurants, tasting rooms and other uses that complement the hotel.

Together, the hotel and retail components aim to create a more complete destination. Visitors can stay longer, dine, shop and experience Fredericksburg rather than simply pass through. That broader experience can also create opportunities beyond the project. New private investment can support businesses, jobs, visitor spending and community activity.

“The Meuse Hotel and Retail projects are an important addition to the City of Fredericksburg, strengthening its position as a Hill Country destination, demonstrating the value of PACE financing as a tool to support economic development, and showing that growth can happen in an environmentally responsible way” said  Clifford Herberg, AACOG Executive Director.

Financing the Building, Not Just the Real Estate

TX-PACE financing supports energy and water efficiency improvements incorporated into the development.  For The Meuse Retail, the energy audit identified eligible improvements involving the building envelope and HVAC systems. The building envelope—including the roof, walls and fenestration—exceeds applicable baseline requirements. The HVAC systems also exceed baseline efficiency standards.

For a destination development like The Meuse, those investments are about more than equipment and construction specifications.  Efficient building systems can help manage long-term operating costs and improve building performance. They can also help properties serve owners, tenants, visitors and the community for years to come.

TX-PACE can finance improvements within the building itself. This allows developers to incorporate high-performance features while preserving other sources of capital for the broader project.

When the Capital Stack Has to Adapt

The Meuse illustrates a familiar reality in commercial real estate. Sometimes, a project’s capital stack needs to change after construction begins.

The original multi-tranche structure followed the project’s construction timeline. The developer could access capital in stages as needed. This avoided carrying the full amount of PACE financing from the outset.

That structure demonstrated the flexibility of TX-PACE for a large and complex development.  The 2026 closing takes that flexibility a step further.  As the project’s financing needs evolved, a new capital provider refinanced the existing assessment and supplied the remaining hotel financing. It also brought the related retail component into the TX-PACE structure.  

That adaptability can help developers navigate changing lending markets, construction schedules and capital requirements.  The objective is not simply to find capital. It is to build a capital structure that works for the project as the project itself evolves.

From One Tranche to $68.6 Million

The Meuse began its TX-PACE story with a relatively small first tranche in 2025.  Just over a year later, the project reached the centerpiece of its financing story: TPA’s largest single-day closing to date.  The combined $68.6 million closing is more than a significant financing milestone. It shows how TX-PACE can grow and adapt alongside a development. The structure can support a broader financing solution as the project’s needs change.

For The Meuse, the capital structure supports both the Kimpton hotel and the surrounding retail district. For Fredericksburg, it represents continued private investment in its tourism economy. That economy draws on historic character, hospitality, dining and Texas Hill Country wine country. The closing also offers a practical example of TX-PACE collaboration. Developers, capital providers, local governments and program administrators worked together to solve a real capital-stack challenge.

The transaction has also drawn industry coverage, including reports from Connect CRE and CRE MarketBeat.

Construction continues at The Meuse. With this closing, the vision for the larger development has taken another significant step forward.

Learn more about TX-PACE financing through Texas PACE Authority.

About Texas PACE Authority

Texas PACE Authority (TPA) is a nonprofit organization and the leading administrator of TX-PACE programs in Texas. At publication, TPA serves 115 cities and counties across the state. TPA works with local governments, property owners and capital providers to facilitate financing for commercial property improvements. These include energy and water efficiency, resiliency and distributed generation improvements.

TPA helps make high-performance building improvements more accessible through thoughtful program administration, industry collaboration and market leadership. This work supports Texas communities and their long-term economic goals.