The state launched applications for its Commercial Property Assessed Clean Energy Program over the summer. Now, a project that sustains the thrill of summer year round is the recipient of the first C-PACE loan in New Jersey.

Minneapolis-based PACE Loan Group announced closing the first funding issued under the New Jersey Economic Development Authority program. According to the firm, Island Waterpark at Showboat in Atlantic City secured a $45.5 million C-PACE loan Dec. 31, 2025.

The funds will go toward recapitalizing the loan used to build the 120,000-square-foot water park and entertainment center.

Opened in 2023, Island Waterpark features 10 waterslides, a multi-level children’s play structure, a lazy river, four restaurants and three bars. Located adjacent to the Showboat resort, Bart Blatstein owns both properties. The Philadelphia investor and developer is also owner of Tower Investments Inc.

“Being able to retroactively pay down the construction debt with C-PACE provides efficient long-term, permanent financing,” said Jerry Ellis, managing director/head of loan structuring, PLG. “With the flexibility of C-PACE, we expect to see significant interest from New Jersey developers.”

In the tool box

According to the national direct lender, C-PACE proceeds went toward retroactively financing energy conservation and renewable energy measures at the property. It said qualifying projects included:

• Building envelope
• LED interior lighting
• High-efficiency natural gas pool heaters
• HVAC system

In January 2025, the NJEDA approved a $4.2 million grant to support expansion of the Showboat Family Entertainment Center.

Blatstein acquired Showboat Resort in 2016. A 2020 clearance paved the way to convert an adjacent surface parking lot into Island Indoor Waterpark. Construction began in 2022, PLG said, after converting the site from a casino, which operated until 2o14. The $100 million Island Waterpark opened in 2023.

The property has played a prominent role in efforts to diversify Atlantic City’s tourism economy.

C-PACE is a voluntary financing tool. It aims to support commercial real property owners in making qualifying upgrades to promote clean energy. Gov. Phil Murphy signed legislation authorizing creation of the state’s C-PACE program in 2021. At the time, Environment New Jersey head Doug O’Malley described C-PACE as “the most popular energy efficiency program you haven’t heard of.”

According to the U.S. Department of Environmental Protection, more than 30 states and Washington, D.C., have active C-PACE programs. EPA said more than 2,900 commercial projects have received over $4 billion in investment under such initiatives, as of November 2022.

NJEDA accepts C-PACE applications on a rolling basis. The agency did not immediately respond to a request for comment on the milestone loan.