Close more deals and save money with C-PACE financing
The commercial real estate industry has experienced a fair share of change and uncertainty recently. Access to capital, economic recovery, infrastructure, and changing needs and preferences for space utilization are just a few of the challenges that developers are facing. In today’s market, one thing is certain: Every little bit counts towards moving the needle for a sale.
Do you wish you had access to more affordable financing? Did you know there’s a financing program that is designed to help you close more deals?
Thanks to legislation enacted in Texas in 2013 and 2015, Commercial Property Assessed Clean Energy (C-PACE) is a financing option that helps commercial real estate developers purchase energy and/or water efficient equipment to retrofit an older building or include in new construction. This financing is much less expensive than other types of capital and gets attached to the property through a voluntary property tax assessment, making the loan transferable when the property is sold.
C-PACE financing is one of the fastest-growing financing structures in the U.S., and benefits real estate developers in a number of ways. Take advantage of C-PACE to:
- Reduce high cost capital: C-PACE financing is much less expensive than traditional gap financing options, offering longer terms, and no upfront hard or soft costs on many of the energy or water efficiency components your property likely needs.
- Decrease risk: C-PACE doesn’t count as a liability and is not tied to you personally. As an annual tax assessment, C-PACE funding cannot accelerate and is non-recourse.
- Develop a more competitive building: Energy and water efficiency upgrades increase property value and make it more desirable, increasing the likelihood of a sale.
- Improve building performance: Efficiency upgrades help to reduce your energy footprint and annual costs—and attract potential buyers.
- Supplement your capital stack: Regulations and standards around energy efficiency continue to evolve and C-PACE can be combined with other types of financing such as tax credits to reduce your financial burden.
Close more deals and improve the economics of your projects with C-PACE! For commercial real estate developers, it might mean the difference between closing or not closing a deal. Choose from a list of capital providers, with the freedom to select a lender that offers you the best financing options for your project.
How do I get started?
Contact Lone Star PACE, an approved C-PACE administrator for Texas, to understand eligibility requirements and to confirm whether your property is located in C-PACE jurisdiction. Lone Star PACE has ample experience working with funding for public benefit and can provide educational resources to help you succeed.
Sources: https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2021.pdf, https://www.cre.org/external-affairs/2020-21-top-ten-issues-affecting-real-estate/