X-Caliber and CastleGreen Finance Provide $26M Construction Financing to Sinatra & Company for Buffalo Heritage Point Project

Why It Matters

The deal demonstrates how C‑PACE financing can lower overall cost of capital and add stability for developers facing volatile interest rates, while supporting Buffalo’s growing demand for premium housing.

Key Takeaways

• $14.8M senior loan from X-Caliber funds construction.
• $11.2M C‑PACE loan adds long‑term fixed financing.
• 61‑unit Heritage Point blends apartments with 30k sq ft commercial space.
• Mixed‑stack reduces cost of capital amid rising rates.
• Project supports Buffalo’s downtown revitalization and job‑growth demand.

Pulse Analysis

C‑PACE financing has emerged as a strategic tool for developers seeking to lock in long‑term, fixed‑rate capital while still accessing short‑term construction funding. In the Heritage Point deal, CastleGreen Finance’s 25‑year non‑recourse C‑PACE loan paired with X‑Caliber’s floating senior loan created a balanced capital stack that mitigates interest‑rate risk and reduces the borrower’s overall cost of capital. This hybrid approach is gaining traction as lenders and borrowers navigate a market where Federal Reserve rate hikes have pushed traditional loan pricing upward.

Buffalo’s downtown district is experiencing a renaissance driven by robust job growth, in‑migration, and municipal investment in infrastructure. The city’s demand for Class A multifamily units is outpacing supply, making projects like Heritage Point—61 apartments plus 30,000 sq ft of commercial space—particularly attractive. By delivering high‑quality housing in the Canalside area, Sinatra & Company aims to capture premium rents and support the broader economic revitalization that is reshaping the region’s real‑estate landscape.

The involvement of JLL’s capital‑markets team underscores the growing importance of sophisticated financing structures in commercial real‑estate. By integrating C‑PACE with conventional senior debt, developers can achieve greater execution certainty and attract equity partners seeking predictable returns. As more municipalities adopt C‑PACE programs, we can expect similar financing models to proliferate, offering a blueprint for cost‑effective development in other mid‑size markets facing similar interest‑rate pressures.

Deal Summary

Sinatra & Company secured $26 million in construction financing for its 61‑unit Heritage Point mixed‑use development in downtown Buffalo. The financing includes a $14.8 million senior construction loan from X‑Caliber and $11.2 million of C‑PACE financing from CastleGreen Finance, arranged by JLL. The capital stack aims to lower the overall cost of capital and support project completion by Q3 2027.