C-PACE Made Easy To Understand

 

Commercial Property Assessed Clean Energy

 

C-PACE is a state policy-enabled financing mechanism that allows commercial building owners and developers to access low cost long term capital for energy related maintenance upgrades in existing buildings or new construction projects. This unique loan program offers no money down and then is repaid as a benefit assessment on the property tax bill paid anually over a term that is typically 20 - 30 years (25 years in Texas). The financing is fixed rate, non-recourse, fully amortizing, and non-accelerating (only the current or past-due payments can be enforced through a tax lien). C-PACE can be used as a recapitalization tool to fund construction cost overruns, replenish operating reserves, cover financing payments through stabilization, and pay down or restructure (possibly replace) existing capital stack entities such as mezzanine debt or preferred equity.

Higher Leverage & Blended Rate

Ability To Replace Mezzine Debt or Preferred Equity

RECAPITALIZATION

Current economic conditions have caused a significant amount of commercial real estate distress. C-PACE may be used to fund construction cost overruns, pay down or restructure existing debt, replenish operating reserves, and cover existing plus C-PACE payments through stabilization with a lookback period from new construction or renovation of up to 3 years (two years in Texas).

C-PACE BENEFITS

C-PACE financing can cover 100% of the hard and soft costs associated with energy saving measures. Preserve capital expenditure by using C-PACE to replace old equipment. Improve the building's value by lowering operating expense and updating it's water and energy systems. Attract new tenants by promoting the building's "green" capabilities and doing your part regarding climate change. Show you are part of the solution rather than the problem.

HVAC Systems

New heating and air conditioning equipment can reduce utility bills by 20-50% while improving tenant comfort.

Water Conservation

Reduce waste from restrooms, heating and cooling, and landscaping.

High Efficiency Lighting

installing LED lighting can lead to significant savings for older commercial buildings

Roof & Elevators

Installing a new roof while possibly adding solar can bring significant savings. New elevators can provide updated technology

Building Envelope

Insulation and windows can save commercial buildings between 5-40% on energy costs

Qualifying Property types

Hotels

Multifamily Units (5 +)

Senior Living

Student Housing

Retail Spaces

Office Buildings

Industrial/Warehouse

Self-Storage Units

C-PACE State Eligibility

Alaska - Term 25 years LTV 20% Lookback 3 years

Arkansas - Term 25 years LTV 20% Lookback N/A

California - Term 30 years LTV 35% Lookback 3 years

Colorado - Term 25 years LTV 25% Lookback 3 years

Connecticut - Term 30 years LTV 30% Lookback 3 years

Delaware - Term 25 years LTV 20% Lookback 3 years

Florida - Term 30 years LTV 35% Lookback 3 years

Illinois - Term 30 years LTV 25% Lookback 2 years

Kentucky - Term 30 years LTV 25% Lookback 3 years

Massachusetts - Term 30 years LTV 25% Lookback 3 years

Maryland - Term 20 years LTV 20% Lookback N/A

Michigan - Term 30 years LTV 30% Lookback 3 years

Maine - Term 30 years LTV 35% Lookback N/A

Minnesota - Term 25 years LTV 30% Lookback 1 year

Missouri - Term 20 years LTV 25% Lookback 3 years

Montana - Term 30 years LTV 35% Lookback 3 years

Nebraska - Term 30 years LTV 25% Lookback N/A

Nevada - Term 25 years LTV 30% Lookback 3 years

New York - Term 30 years LTV 25% Lookback 3 years

Ohio - Term 30 years LTV 25% Lookback 3 years

Oklahoma - Term 30 years LTV 20% Lookback 2 years

Oregon - Term 30 years LTV 30% Lookback 2 years

Pennsylvania - Term 30 years LTV 25% Lookback 2 years

Rhode Island - Term 25 years LTV 30% Lookback 3 years

Tennesee - Term 30 years LTV 25% Lookback 2 years

Texas - Term 30 years LTV 30% Lookback 2 years

Utah - Term 30 years LTV 25% Lookback 3 years

Virginia - Term 25 years LTV 25% Lookback 2 years

Washington - Term 30 years LTV 35% Lookback 3 years

Wisconsin - Term 30 years LTV 25% Lookback 3 years

Maryland - Term 20 years LTV 20% N/A