JLL Capital Markets has arranged approximately $26 million in construction financing for Heritage Point, a mixed-use multifamily development in Buffalo, as developers continue to navigate complex capital markets conditions.
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The financing package was secured on behalf of borrower Sinatra & Company and includes a $14.8 million senior construction loan from X-Caliber, along with $11.2 million in Commercial Property Assessed Clean Energy financing provided by CastleGreen Finance.
JLL structured the deal using a layered capital stack designed to improve financing efficiency and support project viability in a challenging lending environment.
“This transaction highlights how C-PACE financing can be a critical tool in today’s capital markets environment,” said Jillian Mariutti. “By incorporating long-term, fixed-rate capital into the stack, we were able to enhance proceeds, improve execution certainty and deliver a more efficient overall cost of capital for the borrower.”
The development, located at 120 Main St., will consist of two six-story buildings featuring 61 residential units and approximately 30,000 square feet of commercial space.
The project is expected to be delivered in the third quarter of 2027.
Developers are increasingly turning to blended financing strategies, such as combining traditional senior debt with C-PACE funding, to offset rising construction costs and interest rate pressures. C-PACE financing, in particular, has gained traction due to its long-term, fixed-rate structure and ability to fund energy-efficient components of projects.
The Heritage Point deal reflects a broader trend across the commercial real estate sector, where capital stacks are becoming more complex as borrowers seek flexibility and cost certainty.
By integrating multiple financing sources, developers can reduce risk exposure and secure more favorable terms, especially for mixed-use and multifamily projects in secondary markets.
JLL’s role in structuring the transaction underscores the growing importance of advisory services in navigating today’s financing landscape, where traditional lending alone may not fully meet project needs.
Originally reported by Paul Bubny in Connect Cre.
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