Banks have pulled back on their lending, leaving many developers facing a financing void. Sound familiar?  

This financing gap reflects today’s reality of tighter lending and higher interest rates. The option of using Commercial Property Assessed Clean Energy (C-PACE) to solve this financing challenge is gaining popularity.  

Historically, developers have seen PACE Equity as an attractive alternative to higher-interest funding options. This has not changed — PACE Equity’s long-term, fixed-rate, non-recourse financing remains an excellent tool to replace a high-cost mezzanine loan or the addition of pref equity.  

PACE Equity financing is comparable in pricing to bank construction loans. Developers are expanding their PACE Equity financing to cover up to 30% of their capital stack. With the rates at or below bank construction lending, this has a strengthening effect on your overall cost of capital. Plus, if you build a lower carbon building and qualify for CIRRUS™ Low Carbon funding, your rate is reduced by a significant amount and your overall cost of capital is improved.

With low rates and flexible funding, it’s no mystery why developers use PACE Equity to fill the bank lending gap.  


New Construction 

Due to the retraction of bank construction lending, the developers of a large luxury hotel were using a debt fund in the capital stack. The high cost of the debt fund was straining the project from hitting return thresholds. They turned to PACE Equity and discovered that the CIRRUS Low Carbon rate was 300+ basis points lower than their debt fund option. Using this option from PACE Equity brought the WACC down substantially. PACE Equity now accounts for 30% of the capital stack. PACE Equity’s in-house engineering and low carbon team will ensure the project meets energy efficiency requirements with room to spare.  

StorCo Self-Storage participated in CIRRUS Low Carbon program

The owner of the StorCo Self-Storage new construction project took advantage of PACE Equity’s low-interest rate to fill 30% of their capital stack. In addition, StorCo Self-Storage participated in PACE Equity’s unique CIRRUS Low Carbon program, lowering their interest rate even further (up to 70 basis points).  

Lincoln Park utilizes PACE Equity

Retroactive Refinancing 

Seeking to transition from a floating-rate construction loan into a permanent, fixed-rate financing option – the Lincoln Park apartment complex turned to PACE Equity. Despite construction having been completed the previous year, the developers were able to recapitalize their financing through retroactive refinancing. PACE Equity filled 30% of the capital stack with low-cost, non-recourse funding.  

CIRRUS Low Carbon provides better financing for better buildings. By providing a simple and detailed design specification, the program ensures buildings are built to a higher standard of energy efficiency and carbon impact. In return, developers receive engineering support, a lower rate, and a suite of marketing materials. PACE Equity is committed to guiding developers on the path to building better buildings and provides design guidance from beginning to end.  

This guidance, innovation, and commitment to customer satisfaction demonstrate why developers trust PACE Equity to fill the financing void left by banks. The reality of the global economy requires developers to think and act strategically. Now is the time to learn more about this financing option which solves your financing void.


C-PACE is a legislated public/private partnership to provide funding for energy and sustainability measures including energy & water spending, renewable improvements, and resiliency measures (in some states). Get all the details on our How C-PACE Works page. 

A key benefit of PACE Equity financing is its versatility — available for new construction, redevelopment, major renovation, and even retroactive refinancing for up to 3 years after your project reaches Certificate of Occupancy (may be different in your area). 

Accomplish more.