Property Owner Overview
C-PACE is a powerful tool to fund capital-intensive building retrofit and new construction projects. With no initial cash contribution, property owners can finance 100% of qualifying improvements at competitive loan terms with repayment terms of up to 30+ years. Developers use PACE to reduce the overall cost of capital of their financial “capital stack” by replacing expensive mezzanine debt or equity with C-PACE.
MD Pace
C-PACE Requires 0% Down & Allows Long Payback Periods
- Building owners can be cash flow positive from day one
- Underwriting is focused on the underlying building
- Accessible to those with non-investment grade credit
Immediate Net Operating Income Improvement
- Increases net operating income (NOI) – C-PACE projects
are often cash flow positive - Doesn’t tie up balance sheet with debt
- Efficiency improvements increase value of underlying asset
C-PACE Transfers with Title and to Tenants
- Buildings may sell before full payoff; the outstanding
balance transfers to the new building owner - For buildings where tenants pay energy bill but owner
finances upgrades, the owner may be able to pass
financing costs to tenants
Owners with Tax Appetite Love C-PACE
- Allows for full realization of tax credits – including solar
investment tax credit (ITC) - Allows for accelerated depreciation benefits (MACRS)
