Commercial Property Assessed Clean Energy (C-PACE) provides real estate developers and property owners with an innovative tool to finance construction projects within existing buildings or new construction. With funding from private capital sources, the C-PACE program is modeled after other funding methods used to fund public benefits and infrastructure.
Benefits:
- Participant Replacement: STONEHILL PACE can provide a solution on loans needed to be participated or syndicated
- Increase in Deposits: C-PACE assessments fund in full at closing. These funds, along with capitalized interest, reserves and escrow can be held by the Senior Lender.
- Competitive Capital Stack: C-PACE provides a borrower with an added solution if the senior lender cannot get to the leverage request.
- Reducing Exposure: Senior Lender can reduce exposure in the asset and use C-PACE to remain at the same all-in basis.
- Reserves for Underperforming Assets: Senior Lender can use C-PACE for operational/interest reserves on existing collateral that has been impacted from COVID-19 Pandemic.
- Cost Overruns: C-PACE can be added to any project on hold from cost overruns.
PACE can fund a wide variety of improvements including:
- HVACR and Controls
- Lighting & Electrical
- Building Envelope
- Water Efficiency
- Renewable Energy / CoGen
- Associated Soft Costs
Loan Guidelines
Amount | $1M – $100M |
Rate | Fixed starting at 7.00% |
Amortization | Up to 30 years |
Purpose | New Construction Renovation Recapitalization |
Loan To Value | Up to 30% |
Loan To Cost | Up to 35% |
Loan Term | Up to 30 years (no payment for the first 2 years) |
Loan Fee | 1.00% |
Guarantees | Non-recourse and flexible prepayment |