This episode is sponsored by CounterpointeSRE

Despite the politicization of climate strategies in the US, the sustainable lending market continues to grow. Cumulative funding provided through the C-PACE green lending mechanism has reached over $10 billion. Meanwhile, the deals have grown bigger – regularly exceeding $100 million – as C-PACE has evolved from a niche funding mechanism into an established element of the capital stack.

In this special episode of The PERE Podcast, we’re joined by three guests from CounterpointeSRE, an asset manager of debt investments secured by sustainable real estate: Christopher Hoeffel, chief operating officer; Mary-Stuart Freydberg, head of research and sustainability; and Michele Pitale, the firm’s head of C-PACE.

Hoeffel identifies ongoing demand for sustainable financing solutions to inject additional liquidity into the capital stack in situations where higher interest rates have stretched property owners’ finances. Despite adverse headlines around ESG, real estate investors realize that sustainable assets offer more durable cashflows, argues Freydberg. Meanwhile, overly prescriptive regulatory frameworks are gradually being superseded by a more market-oriented approach.

Pitale charts the expansion of C-PACE financing, with most US states having now adopted the public-private mechanism, which enables owners to fund energy efficient upgrades, paid back through their property taxes. Better understanding of C-PACE is fueling investor demand to maximize the size of their loans, says Hoeffel, with a billion-dollar transaction potentially in the cards.

All views of CounterpointeSRE Employees and the guests on this podcast are solely their opinions and do not reflect the opinions of CounterpointeSRE. You should not treat any opinions expressed by CounterpointeSRE or guests as specific endorsement to make a particular investment. References to any securities are or investments are for informational purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Any past performance discussed is not indicative of future results, and please keep in mind that investment in a fund entails a high degree of risk, including the risk of loss.