PACE (C-PACE) in the Capital Stack
Here is CleanFund's FAQ answering all your questions on CPACE.
What is the place of PACE (C-PACE) in the Capital Stack?
A New Financing Tool for Your Capital Stack
CleanFund’s financing can replace or reduce expensive mezz debt or equity with no payment for up to 2 years and provides the best solution for capital constraints faced when investing in lifesaving improvements.
Typical Financing Options: Pay out of pocket. Take out loan from bank (1st or 2nd). Raise equity from partners. Or, Use PACE
A New Financing Tool for Your Capital Stack
CleanFund’s financing can replace or reduce expensive mezz debt or equity with no payment for up to 2 years and provides the best solution for capital constraints faced when investing in lifesaving improvements.
Typical Financing Options: Pay out of pocket. Take out loan from bank (1st or 2nd). Raise equity from partners. Or, Use PACE
Higher Cash Flow | By stretching out payments over a long period of time, properties generate much more benefit from energy and water improvements.
Lease-Up and Retention | Our financing helps to modernize your building, making it more efficient and comfortable. The result? Happier occupants and lower tenant turnover.
Greater Marketability | Enables the kinds of improvements that modernize your building and reduce potential price concessions that buyers may demand to upgrade the property.
Lower Rates | Than mezzanine debt and equity that otherwise might be used to install long-lasting improvements. Debt financing generally provides shorter terms, higher annual payments and/or large balloon payments.
Tenant Pass-Through | Most properties can pass through property taxes as an operating expense to tenants, helping to fully or significantly reduce the effective cost of capital.
Conserve Equity | Why use partners’ capital if you can avoid it?
No Payments for up to 2 Years | Allows you to capitalize interest payments into the financing amount to delay making any payments for up to 2 years.
No Repayment Upon on Sale | Automatically transfers with the property upon a sale, while providing for the ability to repay if desired.
Less Debt | Our long-lasting assessment allows existing and future owners to avoid incurring debt to pay for long-term improvements.
How does PACE Financing Works?
PACE in the capital stack
Payments & Disbursements
How pace financing works
Pace-eligible Improvements
