The Capital Stack Mistake That's Killing Development Deals

What if your development deal doesn't need more equity... it just needs a better capital stack? In this episode of the Local Real Estate Developer Podcast, Sal Tarsia explains how C-PACE financing is helping developers reduce equity requirements, lower their cost of capital, and make projects work that otherwise wouldn't pencil. Drawing from more than 25 years in commercial lending, Sal walks through how C-PACE works, why adaptive reuse projects are a natural fit, how ground-up developers can use it, and why developers should think differently about financing before approaching a lender. Whether you're planning an office-to-multifamily conversion, a historic renovation, a boutique hotel, or new construction, this conversation will change the way you think about structuring development deals. One of the biggest takeaways is that many developers assume they need more equity when the real issue is that they're using the wrong capital stack. By combining traditional senior debt with C-PACE financing, developers can often reduce the amount of equity they need to bring to a project while maintaining more ownership and improving long-term returns. Sal also shares practical advice on working with lenders, evaluating development partners, understanding ground leases, improving building efficiency, and approaching financing early in the development process. Learn more at castlegreenfinance.com