612-355-2606 info@paceloangroup.com

Lending Parameters

Loan Size :
$250,000 to $20 million
Project Type :
New Construction, Re-Development / Adaptive Reuse, Stabilized Buildings
Property Type :
Office, Retail, Multifamily, Hotel, Industrial
Loan Terms :
10 – 20 years
Self Amortizing
Max. Debt Exposure:
Total debt (PACE, mortgage and mezzanine) not to exceed 95% of property value
Prepayable at any time.  Prepayment fees vary based on loan terms


What is PACE?

Property Assessed Clean Energy (PACE) is a financing mechanism that provides commercial real estate owners low-cost, long-term funding for energy efficient and renewable energy projects.  PACE loans cover 100% of eligible costs and are self amortized over a 10 to 20 year term.  PACE loans are repaid as a special assessment on the property’s tax bill.   Because PACE is classified as a special assessment, owners have the added benefit of passing the cost through as a CAM charge.

  • Borrow 100% of PACE eligible costs
  • 10-20 year term
  • Loan is transferable upon sale
  • Serves as a low-cost equity alternative

What are PACE eligible costs?

Generally, any investments that create energy efficiency at a property including, but not limited to, new windows, roof replacement, elevator modernization, LED/low wattage lighting, solar panels, energy efficient building installation, CO2 emission control, etc.

What type of projects can PACE loans be used for?

  • New construction
  • Re-developments, adaptive reuse, gut-rehabs
  • Pre-existing, stabilized buildings

Can a PACE loan be prepaid?

Yes. PACE loans may be repaid at any time during the loan term.  Prepayment penalties will apply depending on when during the term the prepayment occurs.

What if the property is sold prior to the loan maturity?

PACE loans run with the property, are fully transferable and do not become due and payable upon sale, though may be prepaid if desired. 

How much money can be borrowed with PACE?

PACE loans are usually capped at the lesser of (i) a fixed percent of the property’s assessed value (generally 20%) and (ii) total costs incurred on PACE eligible projects.

Can I used PACE if I have a pre-existing mortgage?

Yes, owners can place PACE on a property that has an existing loan.

How does PACE fit into the capital stack?

PACE can add a layer of debt into a capital stack which reduces the required equity.  Because a PACE loan is a special assessment on the tax roll there is no mortgage on the property which allows traditional first mortgage lenders to maintain that position.

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