Crestline, PLG Lend $59M on Dallas-Area Condos – Commercial Observer
Start your engines!
Holigan Investments has sealed $58.7 million of construction financing to develop a condominium project in suburban Dallas that features luxury garages geared toward car enthusiasts, Commercial Observer has learned.
Crestline Management provided a $36.2 million senior loan and PACE Loan Group (PLG) supplied $22.5 million of Commercial Property Assessed Clean Energy (C-PACE) debt for the planned 80-unit Maranello Luxury Garages development in Plano, Texas.
The C-PACE portion of the deal will facilitate sustainability improvements to the luxury garage condo property that are expected to reduce annual energy use by 28 percent and water use by 14 percent, according to PLG.
“C-PACE continues to be a useful way to get unique projects across the finish line,” Robbie Pinkas, senior vice president of originations at PLG, said in a statement. “As lenders, we’re very excited about the strong interest that led to robust sales and a quick construction timeline.”
C-PACE can be used in Texas to fund up to 35 percent of the capital stack for new construction projects, according to PLG.
Located at 4501 Mapleshade Lane 20 miles north of Downtown Dallas, the project is designed for high-end automotive fanatics and collectors, with each unit enabling owners to customize their garage units based on their vehicles. The property will also include 7,000 square feet of office space along with a 28,000-square-foot retail and automobile shop.
Lee McCormick, president of Lone Star PACE, the administrator of Texas’ C-PACE program, said in a statement that the Maranello Luxury Garages project would “ deliver meaningful reductions in energy and water use over time.”
The development marks the first involving luxury garage condos for Michael Holigan, CEO of Holigan Investments, who is also an owner and sponsor of race teams in NASCAR and AMA Supercross/Motocross.
“Since this was the first-of-its-kind project, our development team wanted to bring down the cost of capital to ensure success,” Holigan said in a statement. “We’re pleased with how well this financing package met our needs.”
Crestline Management did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
