Commercial Property Assessed Clean Energy (C-PACE) is a state policy-enabled financing mechanism that allows building owners and developers to access the capital they need to make energy related deferred maintenance upgrades in their existing buildings, support new construction costs, and make renewable energy accessible and cost-effective.
Boilers, Chillers and Furnaces
Hot Water Heating Systems
Automated Building Controls
Variable Speed Drives
High Efficieny Lighting
Available for most commercial properties including multi-family. Does not work for residential condos or government owned properties.
Funds must be earmarked for energy savings measures or associated measures and soft costs. In some areas, water conservation and seismic or storm resiliency may also qualify.
C-PACE programs allow for funding up to 20% of the as-stabilized value of the building.
Most Senior Lenders will want to ensure C-PACE funding preserves debt-service coverage ratios and does not trigger asset classification as "HVCRE" (<15% developer equity).
Note: C-PACE does not work well with pre-existing CMBS, SBA, or Fannie Mae loans. CMS Commercial Finance's team works closely with senior lenders to ensure comfort around PACE funding commitment, disbursement milestones, and risk mitigation in a downside scenario.
CPACE legislation is approved in more than 20 states plus Washington DC. Additional states will soon follow.