Atlantic City’s year-round entertainment economy reached a major financial milestone at the close of 2025, as Island Waterpark at Showboat secured the first Commercial Property Assessed Clean Energy (C-PACE) loan ever issued in New Jersey—opening the door to a powerful new financing tool for large commercial projects across the state.
The $45.5 million loan, finalized on December 31, positions the 120,000-square-foot indoor water park and entertainment complex as the inaugural recipient under New Jersey’s newly launched C-PACE program, administered through the New Jersey Economic Development Authority. The financing was arranged and closed by Minneapolis-based PACE Loan Group, marking the first successful transaction under the state’s long-anticipated clean energy lending framework.
For Atlantic City’s hospitality and development sector, the transaction represents a major breakthrough in how large-scale commercial properties can restructure long-term capital while simultaneously advancing energy efficiency and sustainability goals. Additional coverage of major New Jersey development and investment activity is available through Sunset Daily News’ ongoing business reporting.
Island Waterpark, located directly adjacent to the Showboat Resort on the Boardwalk, will use the C-PACE proceeds to recapitalize the construction loan that financed the development of the attraction, which opened in 2023 and has since become one of the city’s most visible family-oriented destinations.
The facility includes ten large-scale waterslides, a multi-level interactive children’s play structure, a full-length lazy river, four on-site restaurants and three bars, transforming the former casino-adjacent site into a climate-controlled entertainment hub designed to operate year-round.
Both Island Waterpark and the Showboat Resort are owned by Philadelphia-based developer Bart Blatstein through Tower Investments, a firm that has played a central role in repositioning underutilized Atlantic City properties into non-gaming attractions.
Industry officials involved in the transaction said the financing highlights the growing appeal of C-PACE as a long-term, fixed-rate capital solution for large commercial owners.
C-PACE allows property owners to finance eligible energy and building efficiency improvements through a special assessment tied to the property, rather than through conventional mortgage debt. The structure enables longer repayment periods, often improving cash flow and freeing capital for future reinvestment.
In the case of Island Waterpark, a significant portion of the financing supported previously completed energy and infrastructure upgrades that qualify under the program’s guidelines. These qualifying improvements included high-efficiency building envelope upgrades, interior LED lighting, modernized HVAC systems, high-efficiency natural gas pool heaters and other energy conservation measures embedded into the facility’s design and operations.
By allowing the project to retroactively finance qualifying improvements, the C-PACE program created a new pathway for the property to restructure debt at more favorable terms while strengthening the long-term operating profile of the building.
The transaction also signals a turning point for New Jersey’s commercial real estate and development community, which has been closely watching the rollout of the state’s C-PACE program since applications first opened last summer.
State leaders authorized the creation of the program in 2021 as part of a broader strategy to expand clean energy investment and reduce operating costs for commercial property owners. While more than 30 states and Washington, D.C., have established similar programs, New Jersey’s first successful closing now establishes a working model for developers, lenders and municipalities across the state.
For Atlantic City, the timing is particularly notable.
The city continues to accelerate its long-running effort to diversify beyond traditional gaming revenue by attracting family entertainment, convention traffic, sports tourism and experiential attractions that can operate throughout the year. Island Waterpark has become a cornerstone of that strategy, drawing regional visitors during winter months when the Boardwalk historically struggled to maintain foot traffic.
In January 2025, the New Jersey Economic Development Authority also approved a $4.2 million grant to support the expansion of the broader Showboat Family Entertainment Center campus, further reinforcing the site’s role as a central driver of non-casino tourism.
The water park itself sits on land that once served as a surface parking lot tied to the former Showboat casino operation, which closed in 2014. After Blatstein acquired the resort property in 2016, redevelopment planning gained momentum, and regulatory approvals in 2020 cleared the way for construction of the indoor water park complex. Construction began in 2022, culminating in the opening of the approximately $100 million attraction the following year.
From an economic development perspective, the C-PACE financing arrives as Atlantic City continues to court private capital for large-scale redevelopment projects while navigating rising construction costs, higher interest rates and tightening traditional credit markets.
Industry observers say the flexibility of C-PACE financing—particularly its ability to attach repayment to the property itself rather than the owner—could become an increasingly important tool for developers seeking to modernize hotels, entertainment venues, office buildings and mixed-use projects throughout New Jersey.
Because C-PACE financing is voluntary and project-specific, participation does not require municipalities to provide direct funding. Instead, it enables local governments to support clean energy investment by authorizing the use of the assessment mechanism within their jurisdictions.
State officials expect additional applications to follow Island Waterpark’s closing as awareness grows among developers and commercial property owners.
For the Showboat campus, the refinancing strengthens the long-term financial stability of one of Atlantic City’s most visible reinvention projects, reinforcing the city’s broader strategy to expand family-oriented tourism, indoor attractions and sustainable development.
More importantly for New Jersey’s commercial real estate market, the Island Waterpark transaction establishes a clear precedent: C-PACE is now fully operational in the state—and positioned to become a meaningful new source of capital for the next wave of redevelopment, modernization and clean-energy investment across New Jersey.
