C-PACE Financing for Lenders
What is C-PACE Financing?
Commercial Property Assessed Clean Energy (C-PACE) leverages a public/private partnership legislated by the state to provide fixed-rate financing for energy efficiency improvements in commercial real estate development or renovation projects. Repayments are made through a special property tax assessment. C-PACE financing assessments “run with the land”, therefore are non-recourse to the borrower, do not accelerate, and do not become due upon the sale of the property.
PACE Equity Finance’s $1+ billion of assets under management have closed alongside over $4.5 billion in senior debt. Aross the U.S., over 400 lenders have consented to C-PACE financing in the capital stack.
Lender Consent: Required for C-PACE Financing
Prior to closing, existing mortgage holders on a subject property must consent to C-PACE financing. To date, over 400 national, regional, and local lenders have consented to the participation of C-PACE financing in the stack.
C-PACE Financing Installments Cannot be Accelerated
C-PACE financing is fixed-rate, fully-amortized payment with no interest rate resets or balloon payments over the term. The full C-PACE financing assessment is recorded on the property records, yet only delinquent payments may be collected. Any future payments are due according to the original repayment schedule and do not balloon.
C-PACE Financing Does Not Restrict a Senior Lender’s Foreclosure Rights
In the event of a default on the senior lender’s debt, the senior lender can foreclose on its mortgage interest in the property in the same manner as if it were the sole financing on the property. C-PACE financing does not affect any existing remedies under the loan documents. PACE Equity Finance may not prevent, restrict, or otherwise impact the senior lender’s foreclosure.
Prepayment Flexibility
Unlike a traditional tax assessment, PACE Equity Finance can be prepaid at any time and there is no ‘due on sale’ clause. Therefore, the C-PACE financing assessment can be transferred in the event of a sale. If a foreclosure occurs, the lender can transfer any outstanding obligations to a future buyer without penalties or approvals from PACE Equity Finance.
C-PACE Funding Structure Mitigates Risks for the Lender
While many C-PACE financings are fully funded at
closing, funding schedules can be tailored to align with
project requirements and optimize capital deployment.
Lend More in Competitive Commercial Real Estate
PACE Equity Finance is your strategic capital partner, offering a financial platform delivering sophisticated structuring of flexible C-PACE capital. In today’s competitive lending environment, we can help you win more by providing low-cost, long-term supplemental capital that differentiates your quotes, strengthens capital stacks and improves deal execution — while remaining fully aligned with your underwriting standards.
Through our partnership, you gain access to our nationwide origination platform, creating opportunities for increased deal flow, broader market reach, and greater capital deployment. Our turn-key financial platform delivers efficient underwriting and transaction management. This allows banks to incorporate C-PACE proceeds directly into their own loan proposals, providing a tool to build differentiation from competing lenders.
- Differentiate your quote and win more mandates
- Compete more effectively without stretching risk tolerance
- Stay aligned with your risk frameworks, including DSCR and leverage considerations
Total Debt Solutions
integrated financing:
Senior Debt + C-PACE
- Higher LTC
- Lower Blended Cost of Capital
- Greater Execution Certainty
Let's discuss how we can work together to advance your lending business.
A Partnership, Not Just a Capital Source
Build a bilateral relationship and gain access to our nationwide origination platform, creating increased deal flow, broad market reach, and greater capital deployment.
- Differentiate your quote when you integrate C-PACE financing into your debt solution while staying within established credit and policy thresholds
- Compete effectively when you work with our C-PACE solution that aligns with your risk framework
- Take advantage of our integrated execution platform, with in-house structuring, engineering, and servicing
- Deliver certainty of execution and partner with a firm consistently providing a world-class customer experience