C-PACE Texas

Commercial Property Assessed Clean Energy, or C-PACE, is a simple and affordable tool that provides long-term, low-cost financing for qualified efficiency improvements to commercial buildings. The program is authorized by the state of Texas and implemented by counties and cities.

Eligible upgrades are repaid through a voluntary assessment that is attached to the property, typically over a term of 20-30 years. C-PACE improvements add value to the property by reducing utility bills, and in some cases the upgrades outweigh the cost of the improvements themselves.

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What is C-PACE?

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Advantages of C-PACE Financing

C-PACE improves capital efficiency, enhances cash flow and reduces financing risk.

Low-cost alternative to mezzanine debt and equity

Increased net operating income and property value

Lower utility and maintenance costs

Up to 25% LTV, based upon appraisal

Long-term, fixed-rate repayment periods

Non-accelerating

On- or off-balance sheet financing

Cost may be passed to tenant depending on lease

No upfront capital required

Can be paid off by owner or assumed by purchaser

Improved DSCR coverage

No financial or operational covenants

Flexible capitalized interest and interest-only periods

Can be prepaid at any time; subject to typical fees

Incorporating C-PACE financing in a project tends to lower the weighted average cost of capital, extend average maturity dates, and improve cash flow and debt-service coverage ratios.