PACE is an effective financing tool to modernize older buildings. There are many benefits of PACE to help buildings achieve greater success.
- Increase Net Operating Income (NOI)
Energy conservation projects not only create modern building infrastructure, but these investments can also create positive cash flow to immediately improve the net operating income of the building.
- Avoid Unplanned Capital Investments
Many buildings have deferred maintenance and old equipment that is at the end of its useful life. Unplanned equipment replacement is a key concern that can be mitigated by proactively implementing whole-building improvements with PACE financing.
- Eliminate Out of Pocket Costs
PACE Equity provides a turnkey financing solution that covers all design, installation and long-term financing costs.
- Create Better Space for Tenants
The improvements that can be funded through PACE include HVAC, controls, building envelope, hot water, solar power, water conservation, lighting and even measures not typically associated with energy efficiency including windows, roof, and garage doors in industrial facilities. All these building systems directly impact the quality of the environment for your tenants.
- Improve accounting treatment
Building infrastructure projects financed through PACE typically do not affect the borrowing capacity of the building owner or compete with other projects in the capital budget.
- Pass On Capital Costs to Tenants
Tenants often pay for utility expenses and therefore reap the benefits of any energy savings from your improvements. In these cases, the PACE tax assessment has advantages in allowing costs to be passed along to tenants to match those savings. For a Building Owner, this capability has the effect of dramatically reducing the cost of capital to fund necessary improvements.
- Receive Green Building Status
Working with PACE Equity will help your building receive recognition as a Green Building (e.g., Energy Star, LEED) which can help differentiate your building to attract and retain tenants.
Total Cost of Ownership
Perhaps the most meaningful value of PACE is that leveraging PACE funding with a long term investment horizon enables building owners to change their up-front purchasing criteria.
Looking at building systems from a total cost of ownership perspective, PACE can save millions of dollars over the life of the building. What may be a $50k difference in methods to heat an industrial facility, may actually have millions of dollars of difference over 10 years.
PACE Equity can help building owners with this analysis to ensure the maximum value accrues to the owner.