C-PACE Financing for Commercial Renovations

Commercial Renovations and Retrofits

PACE Equity Finance provides financing for major renovations, redevelopments, rehabs, retrofits, deferred maintenance updates, and renewable energy projects. There are many reasons to renovate your building, especially using PACE Equity Finance funding:

Appeal to new tenants with a newly revitalized, healthier, and more modern living and working spaces
Use the energy and maintenance savings you realize from the renovations to help pay off your PACE Equity Finance funding
Tackle your deferred maintenance backlogs
Install or upgrade to efficient equipment
Meet the requirements for Building Performance Standards that are being implemented in your area
Invest in sustainable business process equipment, such as better refrigerants in cold storage facilities or renewable energy for energy-intensive manufacturing plants

Improve your building with efficiency upgrades and resiliency improvements. When you use PACE Equity Finance, you can tie Common Area Maintenance (CAM) charges and green building fees to loan repayments. When other lenders aren’t willing to expand an existing construction loan, PACE financing is a great way to cover the renovation costs. In short, our commercial renovation financing is low-cost and flexible.

Renovation Scenarios: Address maintenance issues, improve efficiency, and enhance tenant spaces

PACE Equity Finance provides 100% financing for eligible improvement costs up to 35% loan-to-value (LTV). This is
typically 50-100% of a renovation budget, including all eligible renovation costs and soft costs.
Avoid second lien debt options
Potential to pass-through C-PACE assessment to tenants
Transfer C-PACE assessment to new owner upon sale (no Due on Sale requirement)
Preserve internal funds for other important uses

Client Story

Historic Hotel Renovation Project

Developer: RSL

This project highlights a key advantage of C-PACE financing: it pairs well with other incentives and funding sources, including NMTC, HTC, TIF, EB-5, USDA, brownfield grants, and more.

Looking for more information about C-PACE financing for renovations?

Estimates show that 1/2 of all commercial buildings in the U.S. need renovations. C-PACE capital is used by building owners to address maintenance issues, improve efficiency, and enhance tenant spaces.

Currently, 50 cities and 6 states have outlined requirements for existing buildings to be renovated to meet efficiency mandates by 2030 (read our white paper on Building Performance Standards). Don’t wait until the last minute to address these standards.

Whether your renovation project includes one efficiency improvement or several, you can add value to your property when you update energy and water consuming features with PACE Equity Finance C-PACE financing.

Frequently Asked Questions

Do I need to pay off the C-PACE special tax assessment when I sell the property?

No. Unlike with residential property sales, a C-PACE special tax assessments can be
transferred to the next owner of a building; it is not “Due on Sale.”

Can I use C-PACE funding to update equipment in my factory?

Yes. If the updated equipment will reduce energy or water consumption, it is likely eligible
for C-PACE financing.

Can I use C-PACE financing for just one improvement, such as a roof replacement?

Yes. Whether you are improving one item or several, you are eligible for C-PACE funding.