In an article published on February 21, 2019 for Commercial Property Executive, Carrie O’Malley’s discussed Commercial PACE (C-PACE) financing and how energy-efficient commercial real estate developments have benefited from the funding tool’s financial assistance.
PACE is a financing vehicle for energy efficiency and renewable energy improvements to real estate, and it is meant to serve as a public-private partnership between three parties. Those parties include:
- Property owners applying for a voluntary, special PACE assessment;
- The local governing body responsible for crafting and implementing the program; and,
- A private PACE lender who loans the property owner funds in accordance with state and local law.
There is much to be gained from implementing PACE into a property owner’s capital investments, from highly energy-efficient developments running at a reduced cost, to cash influx and increased asset value. Carrie adds that PACE assessments are similar to those of real estate taxes and can be incorporated into new projects or renovations, with liens to stay with the land and transfer along with the title to the next property owner.
“PACE benefits property owners because it offers long-term financing that is fully-amortized over an extended period [of] 15 to 20 years…resulting in lower payments as compared to institutional loans,” Carrie said. “PACE does not require a down payment, and it allows for 100 percent financing of energy-efficient improvements, including hard and soft costs associated with the PACE transaction.”
To view the full article, click here.
Kristen M. Chatterton