More About C-PACE
Commercial Property Assessed Clean Energy, known simply as C-PACE, is public-private financing encouraging sustainability in commercial real estate projects. Private capital funds qualified real estate projects, the costs of which are paid over the long-term through property taxes.
C-PACE financing offers substantial returns to property owners by helping fund capital projects that upgrade assets and improve your bottom line.
Up to 100% Financing
- Fully amortized over long term at low, fixed rates
- Non-recourse with a broad range of credit accepted
- Interest only period available
- Cheaper than mezzanine debt and preferred equity
- Saves cash, lowers operating expenses, and brings tax benefits
- Counts as equity in the capital stack for new development
- Modernizes building systems, features, and amenities
- Operating savings improve property cash flow and NOI
- Tax Incentives
- Enhances marketability to tenants and customers
- Reduces company’s environmental footprint
Property Tax Treatment
- Enables tenant pass through for financing payments
- Off-balance sheet financing available
- Less long-term liability than traditional debt
- Transferable upon property sale
How C-PACE Works
- C-PACE funding provides capital to the Property Owner.
- The Property Owner makes annual financing payments to the Local Tax Authority, alongside the property tax bill.
- The Local Tax Authority collects and transfers C-PACE payments to Lender. Payments are treated as property tax.