In this episode we cover the basics on getting small multifamily loans under 1 million loan amounts funded. Trying to find funding for smaller apartment loan purchases can be extremely difficult because many banks don’t like to make loans under a million. We have seen an influx of requests so we decided to address the basics in this video. We talk about bridge to bank financing and some tips to getting your loan request approved.
Commercial Property Assessed Clean Energy (C-PACE) is an important and flexible financing source for the commercial, multi-family, and non-profit real estate markets.
How does retroactive refinancing work? The solution leverages your investment in recently-completed development projects or building renovations. You can take advantage of those prior improvements which impact utility spend (HVAC, lighting, windows, etc.), renewable energy measures, and/or seismic retrofits (in certain states).
C-PACE allows commercial property owners to get low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects that is then repaid as an assessment on the property tax bill for current and future owners. Currently, 37 states and Washington, D.C., have enacted authorizing legislation; the program is active in 20 states and Washington.
C-PACE financing is less expensive than mezzanine debt and addresses the requirements by local governments that are raising the bar for commercial properties in terms of energy efficiency with more stringent building codes and performance standards.
The bottom line if you are looking for higher leverage, cheaper cost of capital, and a healthy building, feel free to reach out and connect with me.
HUD 232 program provides 40 year fixed rate, 75-85% LTV, non-recourse financing nationwide for the ground up construction or substantial rehab of:
• Board and care
• Memory Care
• Skilled Nursing
• & Assisted Living Facilities
WHAT IS CPACE FINANCING?
The PACE financing program was originally designed to provide funding to buildings that need equipment upgrades to bolster their energy efficiencies. CPACE is a branch of PACE financing that focuses on the commercial aspect of business and allows commercial building owners to obtain low-cost financing for renewable energy projects, seismic retrofits, water control measures, and even hurricane protection measures for their properties.
C-PACE is becoming an increasingly attractive financing option because energy improvements can lead to lowered utility bills and may increase property value. Energy efficiency improvements come with a high upfront cost and, once implemented, can take a while to reap the full economic benefits. CPACE is an innovative solution that allows property owners to install those improvements without having to drain working capital, all while giving them the flexibility to pay back the financing over a term that coincides with the life of the upgrades.
CPACE is available in states where legislation allowing for property owners to voluntarily enter into this type of assessment financing has been passed. Since the assessment attaches to the property itself, if the business owner were to sell the property, the assessment would remain on the property and the new owner would assume payments. Additionally, because the assessment resides at the tax assessor level, CPACE financing requires lender consent from any lienholder on the property.
Preferred equity is part of the real estate capital stack – in other words, a type of financing a sponsor or developer will employ as part of the aggregate capital raise for a given real estate project. In short, preferred equity is subordinate to debt, but senior to all common (or JV) equity.
C-PACE (Commercial Property Assessed Clean Energy) financing makes green energy upgrades more accessible and affordable. This innovative financing program is accelerating the green energy movement, and making a positive impact for developers.