C-PACE: Next Generation Construction Finance
achieve your eSG Goals
Commercial Property Assessed Clean Energy (C-PACE) is a state policy-enabled financing mechanism that allows building owners and developers to access the capital they need to make energy-related deferred maintenance upgrades in their existing buildings, support new construction costs, and make renewable energy accessible and cost-effective.
C-PACE is a direct tool for enhancing property sustainability
ESG-Ready Real Estate
With Institutional Investors pressing sponsors for ESG-ready real estate, developers are realizing a sales premium of 11.5% according to JLL’s most recent Return on Sustainability report, a material difference for properties that demonstrate climate-resilient features in energy and environmental improvements. The findings concluded “From capital raising to buy/sell decisions, underwriting, financing, and resilience planning, climate change will impact every part of an asset’s life cycle; it is entering the mainstream investor dialogue more and more.”
building to zero with C-PACE
the ESG Financing Advantage
Cash Flow Positive
Reduced utilities and operating expenses often outweigh the annual C-PACE interest payments.
Energy Efficient
Facilitates energy efficient & renewable energy projects which may otherwise be cost prohibitive.
Equity Reduction
Reduce equity with long term, non-recourse financing up to 100% of project costs.
Improve IRRs
Originated at a fraction of the cost of equity, preferred equity, and mezzanine debt.
Pass-Through Expense
As a tax special assessment, C-PACE is often recoverable from tenants or as a “green tax” to hotel guests.
No Mortgage Recording Tax
C-PACE is not considered a mortgage instrument providing borrowers with a meaningful cost savings.
Do You Want To decrease WACC and Improve IRR?
Submit a C-PACE Financing Request Now!
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