I was chatting with a major developer who is in the process of scoring a CPACE loan, a very big CPACE loan, on one of his developments. He said the sticking point is that intercreditor agreements when CPACE is in the mix get a lot more complicated. Oftentimes, the CPACE is only secured by one part of the building whereas the senior covers the entire development, so it gets messy.
I feel like this is going to happen more and more as CPACE takes greater primacy in the capital stack. I want to talk to a lawyer works through this stuff. If you guys know anyone, DMs are open.