An educational series from Texas PACE Authority exploring common questions, project structures,
market trends, and real-world applications of TX-PACE financing across Texas. 

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Across Texas, conversations around commercial real estate development are changing.  Property owners, developers, lenders, contractors, engineers, attorneys, and local governments are navigating an increasingly complex environment shaped by rising construction costs, elevated interest rates, insurance pressures, aging building infrastructure, and evolving financing structures.

At the same time, projects are becoming more sophisticated. Redevelopment efforts are no longer focused solely on construction. Today's projects often involve layered capital stacks, historic preservation considerations, resiliency planning, operational efficiency goals, community revitalization efforts, and long-term sustainability strategies, all while working to preserve liquidity and maintain overall project feasibility.

As these conversations continue to evolve, so does the role of TX PACE.

Increasingly, project teams are discovering that TX PACE can help address some of the most common challenges facing commercial real estate today. By providing long-term, fixed-rate financing for eligible energy, water conservation, resiliency, and distributed generation improvements, TX PACE can help reduce upfront equity requirements, preserve liquidity, improve cash flow, and strengthen overall project feasibility.

What was once viewed primarily as a financing tool for efficiency improvements has evolved into a strategic source of capital that helps projects move forward, fill gaps in the capital stack, preserve equity, and support long-term building performance.

Across Texas, TX PACE has supported projects ranging from historic hotel redevelopments and multifamily housing to office modernization and large-scale hospitality developments.

• The restoration of the historic Crazy Water Hotel in Mineral Wells, helping bring a long-vacant landmark back into productive use.
• The redevelopment of Hotel Herringbone in Waco, transforming former industrial buildings into a destination hospitality project.
• The development of the JW Marriott Dallas Arts District, demonstrating how TX PACE can support large-scale new construction hospitality projects.
• The revitalization of The Fair Building in Tyler, supporting the modernization of a historic downtown office asset.

Every day, Texas PACE Authority works with property owners, developers, capital providers, contractors, engineers, attorneys, consultants, and local governments across a wide range of project types and markets throughout the state.

Projects utilizing TX PACE include:

• Historic rehabilitation and adaptive reuse projects
• Hospitality redevelopments
• Multifamily housing developments and renovations
• Industrial modernization projects
• Office repositioning and building upgrades
• Healthcare facilities
• Mixed-use developments
• Community revitalization initiatives

Despite the differences in asset type, market, and financing structure, many of the questions remain remarkably similar:

• Is my project a good fit for TX PACE?
• How does TX PACE fit into the capital stack?
• What happens after an eligibility request is submitted?
• How does lender consent work?
• Can TX PACE support solar or resiliency improvements?
• How early should TX PACE be introduced into project planning?

These are no longer isolated questions. They are becoming part of the standard conversation surrounding commercial redevelopment and long-term building investment across Texas.

With more than 100 completed transactions across Texas, the conversation is no longer whether TX PACE works. The conversation today is how project teams are using it to solve increasingly complex development and redevelopment challenges.

That reality is what inspired this series.

TX PACE in Practice was created to explore the real-world questions, market trends, project structures, and financing conversations shaping TX PACE transactions throughout Texas today.

This series is not intended to simply explain program mechanics. It is intended to provide insight into how TX PACE is being utilized across actual projects, how financing conversations are evolving, and how property owners and communities are approaching long-term investment in an increasingly challenging market environment.

Behind every TX PACE transaction, is more than a financing structure.  

• There is a project trying to move forward.
• A building being repositioned.
• A redevelopment effort taking shape.
• A lender evaluating risk.
• A contractor implementing improvements.
• A community investing in its future.

Across Texas, conversations about development, redevelopment, financing, and long-term building performance are happening every day.

In future editions of TX-PACE in Practice, we'll continue exploring the questions, challenges, and opportunities emerging from those conversations, and the role TX-PACE is playing in helping projects move forward.

We invite you to follow the series as we examine real projects, real questions, and real Texas impact.

About Texas PACE Authority

Texas PACE Authority (TPA) is a nonprofit organization and the leading administrator of TX-PACE programs serving 112 cities and counties across Texas. TPA works with local governments, property owners, and capital providers to facilitate financing for energy and water efficiency, resiliency, and distributed generation improvements in commercial properties. Through its program administration and market leadership, TPA helps ensure that high-performance building solutions are accessible, scalable, and aligned with the long-term needs of Texas communities.

www.texaspaceauthority.org