Accessible and Flexible Commercial Real Estate Financing

C-PACE is a powerful, flexible financing tool that can fund, de-risk, or relieve the debt burden from your real estate project. C-PACE provides non-recourse funding up to 30% of stabilized value. In a growing number of states, C-PACE can be used for both construction and refinancing.

TEC Partners uses C-PACE financing for its own projects and is now expanding to help other sponsors and lenders access and implement C-PACE.

Not Just for Solar Anymore

A wide range of energy efficiency and other measures are C-PACE-eligible, including HVAC, envelope, roofs, elevators, and in some jurisdictions, seismic strengthening. Soft costs, including architectural and permitting expenses for these core building components can also be financed with C-PACE.

C-PACE financing rewards sponsors for work they have already done, or plan to do anyway.

You might not think that walls, windows, and roofs would qualify as clean energy measures. But if they were built or substantially renovated to a reasonable standard, they absolutely do. Energy efficiency has rightly been called the ‘First Fuel’ since it replaces the coal, hydrocarbon, renewable, and/or nuclear energy that would otherwise be used to power, heat, and cool a building.

Retroactive C-PACE: Supporting Projects In Transition or Distress

In 12 states (and counting) as well as Washington DC, C-PACE can be applied retroactively to PACE-eligible costs. Proceeds from Retroactive C-PACE transactions are typically used to pay down or otherwise support existing debt obligations.

C-PACE capitalizes up to two years of its own interest payments, further reducing the debt burden for a project
C-PACE is a compelling option for properties struggling with debt service payments due to temporary stress from COVID-19
C-PACE principal never comes due as a balloon payment – even in cases of default
C-PACE can be prepaid at any time to accommodate less expensive financing

Rapidly Gaining Acceptance

C-PACE has attracted a growing number of developers, investors, and lenders. Since 2009, $1.5 Billion of C-PACE investments have been made across over 2,400 properties around the United States. C-PACE is expanding exponentially: almost half of all cumulative C-PACE investments were made in 2019.

To learn more about C-PACE, prequalify your property, and discuss your provider and financing options, contact TEC Partners today.