C-pace
What is C-PACE?
C-PACE (“Commercial Property Assessed Clean Energy”) is a financing mechanism that allows commercial property owners to fund improvements to their properties. The financing is repaid over time through a special assessment on the property’s tax bill, making it unique compared to traditional loans, which are based on the borrower's credit.
Key Features of C-Pace Financing:
Non-recourse to the property owner and fully transferable with the property
20-30 year amortization with tailored duration to meet project needs
Principal is subordinate to senior mortgage and any other financing and can never accelerate.
Payments due have priority repayment akin to property taxes.
Loan amounts of up to 20-40% of total project cost. Min size $7M.
Ability to accrue/capitalize interest for up to 3 years prior to payments being due
Interest only periods of up to 10 years (in most markets)
Flexible structuring in most markets with full amortization over the entire term
Annual call protection that burns off over time (structured on a deal-by-deal basis)
C-Pace Eligible Measures
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Low Flow Fixtures
Waterless Systems
Commercial Washers
Irrigation Systems & Controls
Soil Moisture Sensors
Landscaping
Water Treatment & Reuse
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Air Sealing
Ventilation
Insulation
HVAC
Lighting
Moisture Protection
Building Enveloope
Roofing
Water Heating
Refrigeration
Compressed Air
Charging Stations
Elevator Modernization
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Seismic Structural Retrofits
Superstructure Strengthening
Storm Resistence
Waterproofing
Fire Resilience
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Solar Panels
Wind Turbines
Fuel Cell Power Systems
Congeneration Engines
Geothermal Heat Pumps
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in addition to eligible hard costs, pro rata share of related soft costs can qualify for C-PACE funding, including:
Design Costs
Energy and Seismic Audits
Engineering
Permitting
Inspections
Fees
C-PAce As a Capital Markets Solution
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