Podcast: Download (Duration: 13:09 — 12.2MB)
Why Are Real Estate Developers Using C-PACE Financing? First off, what is C-PACE financing? C-PACE is a PACE loan for commercial properties. As of January 2020, 2,400 commercial projects have been completed – that's over $1.5 billion in funded projects!
Property Assessed Clean Energy (PACE) is an innovative way for owners to pay for upgrades to buildings. It is a state-legislated public/private partnership that covers 100% of improvement costs and 20%-30% of a building's value. These loans are repaid through a tax assessment on the property for up to 30 years.' PACE is modeled after methods to fund public benefits such as roads, sidewalks, and fire departments. Funding comes from private capital sources. PACE Equity offers a turnkey solution that provides funding capital, energy engineering, and project governance to provide surety of close for building owners and developers. Our experience is unmatched! PACE Equity is using PACE in never-before-seen ways, and our team has completed over 150 projects nationwide. We operate with PACE, Property Assessed Clean Energy, an innovative way for owners and developers to leverage better returns. PACE Equity covers 100% of the improvement costs (20% of a building’s value), repaid through a tax assessment on the property for up to 30 years. Now do you see why real estate developers are using C-PACE financing? More: Property Assessed Clean Energy (PACE) is a legislated public/private partnership which creates a new financing option for your capital stack. Your construction budget can use our private capital funding for costs which impact energy & water spend, renewable improvements or seismic strengthening (select states). The repayment of our capital is made through a long-term special tax assessment on the property.