How MinnPACE Financing Supports Senior Living Communities

Mikado is a development company focused on new construction, especially senior living communities, and was evaluating the best financing structure for its Praha project. Their capital stack included a first mortgage, a permanent loan, TIF from the city, and utility energy rebates. When they learned about the PACE program, they analyzed how it could fit into the project’s financing. Compared with equity, PACE was especially attractive because it provides capital without giving up long-term ownership. While equity investors retain a permanent ownership stake, PACE functions as debt that is repaid over time, allowing the developer to keep full control of the building. Based on their experience, Mikado sees PACE as a strong option and plans to consider it for future developments.