C-PACE (Commercial Property Assessed Clean Energy) financing is a highly adaptable form of low-cost, non-recourse capital for property upgrades that improve energy efficiency, utilize renewable energy, conserve water, and improve the resiliency of buildings.

This alternative financing is secured and repaid by a special assessment attached to the property and is generally up to 35% of a property’s appraised value. The payment obligation transfers along with ownership of the property, and the assessment can be prepaid at any time.

C-PACE can work within a variety of capital stacks and can be utilized in different ways depending on the needs of the developer/property owner.

- C-PACE bridges gaps in the capital stack, ensuring projects get across the finish line.

- C-PACE can also be used as a substitute for high-octane senior debt, blending down interest rates and reducing the cost of capital.

- C-PACE also acts as an “Equity Reducer and IRR Juicer™”, substituting more expensive preferred equity and/or mezzanine debt for cheaper PACE financing.

- C-PACE financing is available for commercial properties, including but not limited to: Office, Multifamily, Industrial, Mixed-Use, Retail, Hospitality, Senior Living, and Self-Storage. C-PACE does NOT finance single-family residential properties.

- Types of work that C-PACE can finance include: New construction, renovation, gut rehab, adaptive reuse, solar, roof projects, and refinancing of any of these projects.

Fill out this form to see if your property is eligible for C-PACE.

PLG funds projects of $1M+.

In most states, C-PACE can retroactively cover eligible improvements completed in the past 1-3 years, freeing up rescue capital for stalled projects. By looking back to previous improvements, owners can reduce cost of capital, improve cash flow, and cover cost overages with retroactive C-PACE.

Click below to learn more about retroactive C-PACE.

C-PACE financing is currently available in a majority of states nationwide. Check out our map to see if C-PACE is active in your area.

C-PACE finances a variety of renewable, energy-efficient, and resiliency projects. These include:

- HVAC upgrades, high-efficiency lighting, building envelope, roof replacement, boilers and chillers, renewable energy, water conservation, and seismic retrofits.

C-PACE assessments cannot be accelerated. Only the past due portion is senior to a mortgage lender’s claim, which is typically only 1-3% of property value. Some senior lenders also require property owners to escrow annual C-PACE payments monthly in a similar manner to property tax escrow requirements, helping mitigate risk associated with failure to pay the assessment when due. In case of a default on senior debt, C-PACE financing does not restrict a senior lender’s foreclosure rights. There is no required intercreditor agreement with a senior lender.

Chat with one of our Originators to further see how C-PACE can benefit the senior lender.

If considering Fannie or Freddie as post-construction takeout financing, C-PACE serves as construction financing, but does not stay in the takeout as permanent debt. There is also a viable execution with USDA financing nationwide and HUD in certain states. C-PACE fits in with SBA 7(a) financing, but not SBA 504 financing.

Contact an Originator to learn more.

Every deal is different – but we are looking at the strength of the sponsor, the proforma financials, and the overall capital stack. We also look at the exit plan. Is there a viable take-out?