PACE Funding in 2023 - What You Need to Know
If you're an owner or developer of commercial real estate, this is for you. It could be worth hundreds of thousands, if not millions of dollars in your pocket.
I want to tell you about PACE / C-PACE Funding. PACE is an acronym for [Commercial] Property Assessed Clean Energy, and it's a relatively new nationwide program, rolling out state-by-state, that covers 100% of eligible capital improvements related to energy efficiency.
So what does that mean? Well, it means that if you have done, or are planning to do, any capital improvements related to solar systems, windows, HVAC led lighting, green roofs, new appliances, plumbing, elevators, and escalators, or even seismic retrofitting, then you may be able to recoup 100% of your capital invested into those projects above and beyond the 75% loan to value that you may get from refinancing your property.
What is C-PACE?
Most people don't know about C-PACE. It's legally and technically structured like a tax assessment and it's modeled after the same methods that we use to fund public roads and sidewalks and fire departments.
C-PACE is non-recourse funding, which means the capital providers have no foreclosure rights, no acceleration rights, and the payments to repay that funding are made with the property taxes. **So there isn't even a required monthly payment.**
C-PACE is fixed-rate, slightly higher than conventional debt, but much lower than typical bridge loans or mezzanine debt. It can be interest-only for the first couple of years, and then at a 20 to 25 year term, sometimes up to 30 years. It can also be transferred upon sale - so it stays with the property.
If you're a developer or an owner of commercial real estate who's done or planning any significant capital projects, then you definitely need to know more about this program.
For more information on PACE/C-PACE, contact Evergreen Capital at www.evergreen.llc or call 877.325.4001 learn more.
And remember, every day is Earth Day.
- Trevor Calton is the President of Evergreen Capital Advisors. He is a veteran of Commercial Real Estate & Mortgage Banking since 1997, with extensive experience in mortgage banking, investment acquisitions, real estate sales, and asset management. For more information, Evergreen Capital Advisors can be reached at 877.325.4001 or at email@example.com