C-PACE Financing for New Commercial Construction
New Commercial Construction Project Funding
PACE funding for new commercial construction is low-rate, non-recourse, and long-term which means you can add PACE financing into your capital stack to replace expensive mezz loans, debt funds, or pref equity and improve your overall cost of capital. Our gap-filling financing replaces higher-cost capital while it boosts IRR.
- C-PACE lowers cost of capital for new construction or adaptive reuse
- Boosts IRR and reduces WACC by substituting equity or mezzanine debt with fixed rate C-PACE financing
- Fills capital stack gaps with accretive leverage
- Overcomes low LTC construction lending with long-term, non-recourse C-PACE capital
New Construction Scenarios: Replace high-cost debt and lower your WACC
- Provides 100% financing for eligible improvement costs—typically covering 30-65% of hard costs—up to
35% loan-to-value (LTV) - Flexible exit strategies with prepayment options provide a pathway for transitioning to alternate long-term
financing - Lower WACC by reducing funding from high-cost funding options
Client Story
C-PACE Financing Strengthens Hospitality Development
Jackson-Shaw Company
PACE Equity Finance funded $40 million of C-PACE to Jackson-Shaw Company’s dual branded hotel — AC by Marriott | Element by Westin. Learn how this hotel leveraged market-leading rates for this development project in the heart of Las Vegas.
PACE Equity Finance operates as a direct balance sheet lender, controlling its $2 billion of committed capital and managing fast underwriting with investment decisions. C-PACE financing can be placed into both simple and complex capital stacks to enhance IRR and lower WACC.
Need low-cost capital to finance a new construction project?
This financing solution leverages utility-impacting items from your construction budget to complete your capital stack with low-cost, long-term, fixed-rate funding.
PACE Equity Finance’s in-house engineering team maximizes the funding amount and amortization term while complying with unique requirements for each PACE program. Contact us for a discussion about your project.
