Lender Consent for Every Project
Commercial Property Assessed Clean Energy (C-PACE) offers unique benefits for commercial real estate capital stacks that developers and owners value for a variety of reasons — closing a funding gap, improving returns, funding cost overruns, creating liquidity post-construction, etc. Repayment for a C-PACE loan is done through a special tax assessment on the property; senior lenders are interested in the specifics of how it works so they can ensure their security interest is protected.
We require that every project we fund includes consent from the senior lender. PACE Equity Finance ensures lender confidence through comprehensive education, data-backed underwriting, and deep transaction experience.
Over 400 Lenders Nationwide Have Consented
Lenders across the country have reviewed and approved C-PACE projects. PACE Equity Finance has secured lender approval from banks of all sizes using a methodical, results-driven approach to every project and lender conversation.
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.
Recapitalizations Improve Project Financials
In the case of a recapitalization, project assets protect lender investments through stabilization..
Strategic Partnership with PACE Equity Finance
Through a strategic partnership, you gain access to our nationwide origination platform, creating opportunities for increased deal flow, broader market reach, and greater capital deployment.
Our Total Debt Solution offering for institutional sponsors delivers an integrated Senior Debt + C-PACE package that solves key challenges in today’s capital stacks.