C-PACE Overview

C-PACE Primer

100% Financing for Energy-Saving Upgrades and Improvements to New and Existing Commercial Properties.

PACE (Property Assessed Clean Energy) is a Public/Private partnership designed to allow property owners to finance energy-saving and renewable energy improvements through voluntary assessments placed on the property.

The primary goal of PACE is to lower the cost of entry for sustainability, resiliency and renewable energy improvements, thereby facilitating economic development, improved community infrastrucutre, reduced environmental pollution and improved operating efficiencies for building owners. 

100% Project Financing

Finance 100% of the project costs up to 35% of the appraised property value. Project costs include hard and soft development costs, design, engineering, permits, and service contracts.

Long-Term Fixed Rates

Projects are financed over the useful life of the improvement with fixed long term interest rates between 5.5% – 7.50%, with fully amortizing terms ranging between 5 and 30 years.

Transferrable

Tax assessments are linked to the property and can transfer with the sale of a property as the supported improvements are permanent and fixed. 

Flexible Prepayment Options

C-PACE financing provides flexible prepayment options that allow developers and building owners to effectively manage the capital structure of the property.

Similar to a Ground Lease

C-PACE financing does not have due on sale or acceleration rights.

Commercial PACE is Legislated In 36 States and D.C.

Programs are active and operating in 18 states as well as Washington D.C., and the list continues to grow. 

Key Benefits of C-PACE for Building Owners

Lower Energy Costs. Lower Capital Costs. Lower Operating Expenses. Increased Cash Flow. Higher Property Values.

Low Cost Financing for Stabilized Property Upgrades

C-PACE provides 100% financing of energy efficiency, renewable and sustainable upgrades and retrofits to commercial real estate properties, reducing the need for value engineering decisions that compromise available efficieincies.

Effective Alternative to Mezzanine Debt for Deep Retrofits, Repositioning or Ground Up Construction

C-PACE financing can fill funding gaps and/or reduce the average cost of capital stacks allowing developers to increase the overall potential of the projects and profit opportunities. more…

Financing May Be Passed to Tenants in Certain Lease Structures

Depending on the lease terms the annual PACE assessment may be passed to tenants with NNN, or Modified Gross Leases. The potential pass-through nature of C-PACE can result in zero cost equity.

Release Lender Capex Reserves

C-PACE can provide 100% financing for many lender-required CAPEX such as roofs and HVAC replacement, releasing 100% of the reserves back to the property owner, increasing ROI and available capital for additional improvements or investments.

Off-Balance Sheet Treatment

The financing is based on the property’s financials with no credit impact to the property owner. A tax assessment is placed on the property and is usually considered an operating expense. As a result, the borrowing may have no balance sheet impact on the property.

HASRE is partnership between Counterpointe Sustainable Real Estate and Hannon Armstrong.