PACE Financing for Commercial Real Estate
Businesses and commercial property owners are increasingly turning to energy retrofits and green energy solutions in the pursuit of energy savings. Financing is often a key challenge in implementing such projects. This is where CPACE Loans and PACE Financing come into play, providing crucial financial support to make green energy projects a more cost-effective reality.
What are C-PACE Loans and PACE Financing for Commercial Real Estate Projects?
PACE stands for Commercial Property Assessed Clean Energy. C-PACE Loans, or PACE Financing, is an innovative funding option where commercial real estate owners and developers can borrow money for energy efficiency and renewable energy projects and repay it through a tax assessment on the property. These financing solutions enable property owners to invest in green energy technologies without requiring significant upfront capital.
C-PACE Loans Present Appealing Aspects For Sustainable Projects
Cash Flow Generation
CPACE pays up to 100% of the eligible hard and soft project expenses. So, property owners and investors can immediately generate cash flow without any upfront expenses or down payments.
Capital Stack Stability
CPACE safeguards against interest rate volatility via fixed-rate permanent financing and allows amortization over a 30-year period and interest-only payments during the construction stage.
The funds are entirely placed into escrow during the closing process and are distributed alongside the construction loan in a coordinated manner. This disbursement mechanism remains unaffected by any situation, ensuring a non-accelerating structure.
C-PACE structure allows the developers to pass the costs through to the tenants who benefit from the building improvements. As the financing is tied to the property and not the individual, at the point of sale, the remaining PACE assessment balances can be transferred to the new owner, who benefits from the improvements.
Lower Capital Costs
C-PACE financing substitutes the exorbitant mezzanine debt piece in the capital structure. Additionally, no balloon payments or profit-share leads to a decrease in overall capital expenses and steady returns.
Narrowed Capital Gaps
C-PACE bridges funding gaps by offering non-accelerated and non-recourse financing options, making it an attractive mid-project solution to fill project overruns.
Reach Out To Us To Learn If C-PACE is a Good Fit For Your Project
At EnerYields, we are dedicated to empowering businesses and commercial property owners to embrace green energy solutions with confidence.
Quick and Easy Application Process
EnerYields simplifies the process of securing C-PACE financing for your commercial real estate. Our continuous support streamlines the application journey, ensuring swift approval times and enabling you to proceed with your project promptly.
Having a deep understanding of C-PACE financing enables us to assist you in securing optimal funding and favorable conditions. We undertake the substantial effort, acting as your single point of contact amidst various stakeholders, ensuring a streamlined process for a seamless journey.
Apply now for suitable C-PACE Loans and PACE Financing for your commercial real estate projects.