As we enter the back half of 2025, one thing is clear: commercial real estate isn’t frozen. It’s realigning. Traditional lenders remain risk-off. Sponsors are adjusting to this new reality by rebuilding capital stacks and transacting with precision.

Quick Stats
→ CRE loan growth slowed to its lowest rate since 2013¹
→ Banks now represent just 31% of CRE lending, down from 44% in 2022³
→ $4.4B in private short-term CRE debt originated in Q1 2025 alone⁴
→ $950B+ in CRE mortgages set to mature in 2025⁶

Liquidity Is Scarce. Execution Is Not.
Commercial real estate credit markets have entered a new regime. CRE loan growth slowed to its lowest pace since 2013¹. The Fed’s April 2025 Loan Officer Survey confirmed what sponsors already know: tighter credit, lower LTVs, and heightened DSCR hurdles. Banks are risk-off and unlikely to return soon.

In 2024, banks accounted for just 31% of CRE lending, down from 44% in 2022³. Private capital is stepping in. In Q1 2025, private lenders originated $4.4B in short-term CRE debt⁴. That shift has powered CLEARWATER’s exponential growth. Our current pipeline exceeds $1.5B, driven by demand for cost-effective, flexible capital that closes.

Sponsors Are Moving. The Market Is Catching Up.
ULI forecasts $469B in CRE deal volume in 2025, up from $437B⁵. But the more important trend is beneath the surface—sponsors are reactivating. Projects shelved in 2022 and 2023 are coming back online. Capital stacks are being rebuilt. The market is adjusting to a new rate environment, not waiting for clarity.

At CLEARWATER, we’re meeting the moment with institutional capital structured for this market, not the one we left behind. Our $1B+ pipeline reflects growing demand for non-dilutive, nonrecourse execution across three core areas:

1. New Construction
We’re financing fully entitled, institutional-grade developments with C-PACE sitting behind the senior, bringing cost of capital down while preserving sponsor equity.

2. Completion Capital
Projects stalled midstream are restarting. As senior lenders cap exposure or retrade terms, we’re stepping in with passive capital to help them get back online.

3. Recapitalizations
With approximately $950 billion in CRE debt maturing this year, many sponsors are utilizing C-PACE to refinance maturing loans, replenish reserves, and extend duration, without introducing dilutive capital.

Sponsors aren’t overleveraged. They’re underequipped, caught between inflation and illiquidity. We underwrite into that gap, not around it.

The Recap Cycle Is Here
Roughly $950B in CRE mortgages mature in 2025⁶. Many sponsors are facing shortfalls, not due to poor asset performance, but rather from pricing resets, tighter advance rates, and slow absorption.

Senior lenders are engaging, too. In many deals, we’re actively reducing senior last-dollar exposure, freeing capital to pursue higher-spread opportunities. It’s a better execution for borrower and lender.

Why CLEARWATER Wins: Alignment + Real-Time Structuring
We’re not a product shop. We’re real estate investors with a structured credit lens.

CLEARWATER was built on the belief that C-PACE is most effective when aligned with the capital stack. That requires more than just structuring mechanics; it demands fluency in capital markets. Through our affiliation with AXCS Capital, we have access to real-time pricing and structuring across senior debt, subordinate debt, and equity investments.

H2 2025: Structure Will Outperform Optimism
We expect the second half of 2025 to be driven by:

1. Ongoing repricing of risk and valuations

2. Growing dependence on private capital for execution

3. Sponsor demand for flexible, non-dilutive capital structures

C-PACE is not a cure-all, but it’s a critical solution. With 30-year amortization, non-recourse treatment, fixed-rate terms, and flexible repayment options, it’s one of the most versatile tools available for sponsors navigating a dislocated market.

CLEARWATER is built to lead in this environment by underwriting selectively, structuring precisely, and solving for capital gaps that stall development.

In today’s market, capital doesn’t need to chase risk. It needs to deliver clarity. That’s what we’re doing, one transaction at a time.

Let’s talk.
📩 deals@c-pace.com
🌐 www.c-pace.com

Sources
¹ Federal Reserve Bank of St. Louis, FRED – Total CRE Loan Growth, Q4 2024
² Federal Reserve, April 2025 Senior Loan Officer Opinion Survey
³ MSCI Real Assets, “CRE Lending Trends and Bank Market Share,” 2024
⁴ Commercial Observer, “Private Lenders Fill the Void,” Q1 2025
⁵ ULI Real Estate Economic Forecast, Spring 2025
⁶ Mortgage Bankers Association, 2025 Maturity Outlook

Texas C-PACE Program Expands LTV Cap & Flexibility

Big news for property owners, developers, and lenders: Texas C-PACE has been enhanced to provide greater financing flexibility while maintaining the integrity of its energy and water-saving benefits. Keeping PACE in Texas, the stakeholder group that sets best practices for the state’s C-PACE program has officially approved key updates to the PACE in a Box program, making financing more accessible while strengthening underwriting standards.

What’s Changing?

• Higher Loan-to-Value (LTV) Cap – The maximum LTV for C-PACE financing has increased from 25% to 35%, providing property owners with more capital. All projects must comply with standard banking regulations regarding appraisals.

• Expanded Repayment Flexibility – Capitalized interest and interest-only periods have been extended up to five (5) years, allowing property owners to better align repayment schedules with lease-up and stabilization.

• Updated Savings to Investment Ratio (SIR) Calculation – Interest costs are now excluded from the cost side of the SIR calculation.

• New Principal Payment Timeline – Principal payments must begin no later than five (5) years after closing:

  • Up to three (3) years for construction.

  • Up to two (2) additional years for stabilization if needed.

  • For refinances, stabilization periods may extend up to three (3) years if necessary.

Why This Matters

These improvements position Texas as one of the most competitive and well-structured C-PACE markets in the country. The higher LTV cap allows for greater financing leverage, reducing reliance on expensive mezzanine debt or equity. Meanwhile, the extended interest-only and capitalized interest options give developers the flexibility to manage cash flow during lease-up and stabilization.

At the same time, the updated SIR calculation and reinforced underwriting standards help preserve the integrity of the program, ensuring long-term sustainability and continued benefits for both the private sector and local communities.

For Local Governments

These updates were designed to function together and should be adopted as a package. They have been incorporated into the model PACE in a Box program, which provides a uniform set of best practices for C-PACE administration across Texas.

Local governments that need to update their statutory PACE Reports to implement these changes are encouraged to adopt the full package to maintain compliance with PACE in a Box standards. This approach ensures consistency, transparency, and continued program success.

Next Steps

With these changes now officially in effect, property owners, developers, and lenders should explore how these enhancements can optimize their capital structures and energy-efficient projects.

If you're working on a project in Texas or considering C-PACE financing in another market, now is the time to evaluate these updates. Reach out to discuss how these changes can benefit your next deal —> deals@c-pace.com

Sources: Texas PACE Authority; LoneStar PACE

About
Clearwater PACE is a New York-based, national direct lender specializing in C-PACE Financing for Commercial Real Estate spanning all asset types and geographies across the U.S. We offer low-cost, fixed-rate, long-term loans ideal for new construction or recapitalizations for recently completed projects. Our team of seasoned real estate investment professionals, with extensive expertise in structured finance, crafts tailored solutions that align with Sponsor’s needs, including hedging away negative arbitrage and flexible prepayment options.

Cheers,
Jonathan Seabolt
Co-Founder, Clearwater PACE
info@c-pace.com

For more information, please visit us at www.c-pace.com or submit a C-PACE financing request below.

C-PACE.COM is affiliated with Clearwater PACE. Copyright 2025 All Rights Reserved.

C-PACE.COM is a New York-based, national direct lender specializing in C-PACE Financing for Commercial Real Estate spanning all asset types and geographies across the U.S. We offer low-cost, fixed-rate, long-term loans ideal for new construction or recapitalizations for recently completed projects. Our team of seasoned real estate professionals, with extensive expertise in structured finance, crafts tailored solutions that align with Sponsor’s needs, including hedging away negative arbitrage and flexible prepayment options.

Please visit us at www.c-pace.com or submit your C-PACE financing request below.

Reflecting on a Milestone Year and Looking Ahead to 2025

As we close out 2024, we at C-PACE.COM are proud to celebrate a record-setting year. This has been the most substantial annual volume of Commercial Property Assessed Clean Energy (C-PACE) financing since the program’s inception, demonstrating the growing demand for sustainable, energy-efficient, and resilient property improvements.

C-PACE Gains Momentum Nationwide

The adoption of C-PACE financing continues to accelerate, driven by its unique ability to provide long-term, fixed-rate funding for energy efficiency, renewable energy, and resiliency projects. Across the nation, more municipalities are embracing the program, and a growing number of consenting lenders recognize its ability to stabilize and advance business plans in a volatile interest rate environment.

Municipalities enabling C-PACE have expanded rapidly, with programs active in 39 states and the District of Columbia. This growth reflects the collective understanding that C-PACE is pivotal in driving environmental and economic progress while empowering property owners to navigate financial uncertainty.

A Stable Solution Amid Volatility

2024 was marked by fluctuating interest rates, posing challenges for many financing options. C-PACE emerged as a critical alternative, offering fixed-rate financing to support new construction, adaptive reuse, and energy retrofitting projects. For property owners and developers, C-PACE has provided a reliable pathway to move business plans forward, even in uncertain economic conditions.

Looking Ahead to 2025

As we look to 2025, we are incredibly grateful to our clients, partners, and the communities we serve for making 2024 a milestone year. Together, we’re building a more sustainable and resilient future.

Stay tuned to C-PACE.COM for updates and more information about how we’re shaping the future of sustainable financing.

#CPACE #Sustainability #EnergyEfficiency #Resilience #2025Innovation

Sponsored By

Nuveen Green Capital Expands C-PACE Platform With CDPQ Partnership

Source: Nuveen

Nuveen Green Capital (NGC), which has emerged as a leader in the commercial property assessed clean energy (C-PACE) lending space over the past decade, is pioneering a new partnership aimed at broadening the scope of the sustainability financing vehicle.

NGC, Nuveen's clean energy lending arm, announced Monday that it has teamed up with Canadian global investment group CDPQ to launch a $600 million integrated commercial real estate lending program that combines long-term C-PACE financing with senior bridge and construction loans. 

Since NGC’s first foray into C-PACE lending, the industry has seen more than $7 billion in financing volume from over 2,300 projects. According to the company, NGC accounted for 41 percent of the total C-PACE activity in 2023.  

“Through this distinctive financing program, we can accelerate the implementation of environmentally sound measures for commercial real estate owners and developers,” Marc Cormier, executive vice president and head of fixed income at CDPQ, said. “We are excited to combine our long-term capital with Nuveen Green Capital’s extensive expertise to offer a sustainable integrated financing solution that fully aligns with CDPQ’s climate strategy and commitment to decarbonize the real economy.”

Read more here.

Sponsored by CLEARWATER PACE

CLEARWATER PACE is a New York-based, national direct lender specializing in C-PACE financing for commercial real estate across all asset classes and geographies. CLEARWATER PACE offers low-cost, fixed-rate, long-term loans ideal for new construction or as bridge financing for recently completed projects.

Our team of seasoned real estate professionals, with extensive expertise in structured finance, crafts tailored solutions that align with Sponsor’s needs, including hedging away negative arbitrage and flexible prepayment options.

Please visit us at www.c-pace.com or submit your C-PACE financing request below.

✅ New Jersey Approves C-PACE Program

Source: CoStar

The New Jersey Economic Development Authority (NJEDA) Board approved creating the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will allow commercial property owners to access a new form of financing to undertake energy efficiency, water conservation, renewable energy, and resiliency upgrades, supporting Governor Phil Murphy’s efforts to transition to 100 percent clean electricity in the state by 2035.

“After seeing the success of C-PACE programs across the country, I was proud to sign legislation into law to establish the program in the Garden State,” said Governor Murphy. “The time for bold, innovative actions that will help thwart the effects of climate change is now. The Garden State C-PACE Program will lead to a greater embrace of clean energy measures that will help improve our communities while saving money for New Jerseyans.”

“Under Governor Murphy’s leadership, New Jersey has set ambitious clean energy goals, unlocking opportunities in emerging industries to create economic growth and high-quality jobs while protecting the environment for future generations,” said NJEDA Chief Executive Officer Tim Sullivan. “The Garden State C-PACE program will serve as a catalyst for private investment into building decarbonization, renewable energy, and resiliency projects, helping to reduce energy costs and stimulate the economy.”

Read more here. 

C-PACE Appealing in Low Interest Rate Environment

Source: Forbes

The Federal Reserve’s decision to aggressively hike the federal funds rate in 2022 threw the commercial real estate market into turmoil. Property investors found it challenging to refinance much cheaper short-term loans often used to renovate or develop properties.

However, the interest rate spike greatly enhanced the viability of commercial property assessed clean energy (C-PACE), a type of loan that becomes an assessment that borrowers pay along with their tax bill. The program emerged over a decade ago and generally pays for energy, water, and seismic resiliency upgrades in new construction and rehabs, including retroactively. As a result, developers embraced C-PACE as they sought ways to pay down debt to secure new financing or loan extensions and modifications.

Now that the Federal Reserve has reversed course with its 50-basis-point federal funds rate reduction in September — and with Wall Street anticipating additional rate cuts before the end of the year — will C-PACE demand start to cool? Don’t count on it, says Rafi Golberstein, founder and CEO of PACE Loan Group, a direct lender of C-PACE financing based in Minneapolis, Minn.

He maintains that C-PACE remains an attractive funding source due to its competitive cost of capital and the continued restraints on bank lending. Plus, after years of hesitancy, more conventional lenders and brokers are beginning to grasp the benefits and flexibility offered by C-PACE as it spreads across the country.

Read more here.

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

Have a story we missed? Drop us a note → weekly@c-pace.com

About CLEARWATER

Need C-PACE financing for your project? Fill Out This Form Here.

CLEARWATER was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At CLEARWATER, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Happy Friday. C-PACE Weekly is your go-to source for the latest insights, updates, and opportunities in the Commercial Property Assessed Clean Energy (“C-PACE”) sector. Let’s dig into the latest news!

September 27th, 2024

Source: St. Regis

Securing financing for hotel developments has become an increasingly complex challenge, especially in today’s economic environment. As interest rates remain high and lenders become more conservative, developers often face significant hurdles in obtaining the necessary capital to bring their projects to life.

A recent $73 million origination for a 263-room dual-branded Hilton hotel development in San Diego demonstrates how creative financing structures, combining construction loans and Commercial Property Assessed Clean Energy (CPACE) financing, can overcome these obstacles.

The Financing Challenge

Hotel development financing has always been more complex and difficult to obtain, but in the current environment, these challenges are amplified. Higher interest rates, sticky inflation, and economic uncertainty have made traditional financing more expensive and difficult to secure.

This environment creates significant headwinds for developers, who must overcome significant obstacles to get a project off the ground. Traditional banks, which previously provided the bulk of construction financing, are now more reluctant to offer favorable terms or any financing. This forces developers to seek alternative financing methods to balance debt costs while meeting the project’s capital needs.

$50.4MM Senior + C-PACE Deal

In the San Diego deal, a $50.4 million floating-rate construction loan was central to the financing structure. This short-term loan bridges the gap between the construction phase and permanent financing or the sale of the property.

In this case, the construction loan provided the flexibility needed for a hotel development project to proceed, as cash flow will not be generated until the hotel is operational.

Read more here.

Anne Hill, SVP Bayview PACE

Source: MultiHousingNews

Why C-PACE Is a ‘Swiss Army Knife’ for Senior Housing

These innovative iterations are helping unlock value and facilitate development for developers, sponsors, and for-profit owners of senior housing properties. Depending on the local and state program guidelines, it offers unusual flexibility and beneficial terms for qualified improvements in energy, lighting, water systems, building envelope, and other resiliency components.

One of those examples is C-PACE, which helps challenged senior housing projects to begin building.

For the 131-unit Ravella at Ormond Beach, Fla., $4 million in C-PACE helped complete construction with an attractive 25-year fixed rate and created an overall package for the project at 80 percent combined loan-to-cost.

In Colorado, a major congregate care development offering assisted living, transitional living, and memory care was facing headwinds, and C-PACE provided a needed $6 million addition to the capital stack to get underway. The C-PACE component for Mesa Verde, a 124-unit senior living community in Durango, helped fund primary building systems, including HVAC, electrical, plumbing, and roofing.

Read more here.

Source: Globe News Wire

Lone Star PACE Facilitates $3.5M in C-PACE Financing for Renovation of Suburban Office Building in Dallas

Lone Star PACE, a leading administrator of Texas’ Commercial Property Assessed Clean Energy Program, announced today that it helped arrange $3.5M in C-PACE financing for sustainable building renovations at Meadow Park Tower in Dallas County.

The 263,000-square-foot, 15-story, multitenant office building is located at 10440 N. Central Expressway in Dallas. It was constructed in 1986 and renovated in 2016. A subsequent renovation began in 2022 and includes the installation of sustainable building components, including energy-efficient windows and walls, LED lighting, improved HVAC systems, and low-flow plumbing.

President of Lone Star PACE, Lee McCormick said: “It was an honor to partner with Bradford MPT Partners and Bayview PACE on this project, which breathes new life into a landmark office tower at the heart of North Dallas. C-PACE financing is a great tool to incentivize the modernization of aging building stock, which is especially valuable in today’s evolving office market.”

C-PACE allows property owners to access low-cost, long-term financing for energy and water conservation systems in commercial buildings. Owners can use C-PACE to finance new construction, building retrofits, or recapitalizations.

Read more here.

🎧 LISTEN: An NYC C-PACE Update with Mansoor Ghori

Source: Culver City Observer

Lendlease and Aware Super Close $315.5M Financing for Habitat a Culver City Mixed-Use Project

Habitat is an office, multifamily and retail project at 3401 S. La Cienega Boulevard. Scheduled for completion in 2026, Habitat will comprise a six-story office building, a 260-unit, 12-story luxury apartment complex and 2,900 square feet of ground-floor retail and restaurant spaces.

Lendlease and joint venture partner Aware Super closed on $316 million in construction funding for Habitat.

Habitat, designed by SHoP Architects and Steinberg Hart, will feature a, a six-story creative office building with over 253,000 square feet of space. The project also boasts a one-acre integrated park space designed to enhance the urban environment, offering a blend of professional and personal well-being for residents and workers alike. Habitat offices will feature 50,000-square-foot floor plates with 14-foot heights, natural light and terraces.

One of the standout features of Habitat is its commitment to sustainability. The development is designed to achieve net-zero carbon emissions, incorporating a solar array and extensive EV parking to reduce its environmental footprint. Lendlease's emphasis on environmental stewardship aligns with the City of Los Angeles' broader goals for green growth, positioning Habitat as a model for future urban developments.

Los Angeles-based landscape architecture firm RELM designed Habitat's network of parks and walking trails, which include both secluded seating areas and communal gathering spots. The integrated acre of open space connects the two terraced buildings with surrounding amenities, promoting a healthy lifestyle with a strong connection to nature.

Habitat is committed to achieving net-zero carbon in construction and operations, featuring a 125kW solar array, 64 electric vehicle parking spots, 222 secured bike parking spaces, natural ventilation, and lower-carbon concrete. Lendlease aims for LEED Gold certification for the residential building and targets making the commercial building the first new creative office in Los Angeles to achieve LEED Platinum.

Lendlease secured funding from Barings and Counterpointe Sustainable Real Estate. The firm previously worked with Barings on financing for Claremont Hall, a 41-story condo tower in New York. Counterpointe said it provided $156 million of C-PACE financing on the project.

Read more here.

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

Have a story we missed? Drop us a note → weekly@c-pace.com

Top Reads by Month

September read: Carlyle Commits $1B towards C-PACE with North Bridge Partnership

August read: Columbia Pacific & Nuveen Green Capital Lend $48M Full Stack for Townhome Project

July read: C-PACE Alert: Dwight Capital Launches C-PACE Lending Platform

June read: 4 big stories this week in C-PACE

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

Happy Friday! C-PACE Weekly is your go-to source for the latest insights, updates, and opportunities in the Commercial Property Assessed Clean Energy (“C-PACE”) sector. Let’s dig into the latest news!

September 20th, 2024

Laura Rapaport, CEO of North Bridge ESG
Source: Commercial Observer

Carlyle and North Bridge Announce Strategic Partnership to Provide Up to $1 Billion in C-PACE Financing

NEW YORK, NY – Carlyle, a global investment powerhouse, has just made waves in the real estate finance world with a strategic partnership aimed at reshaping the clean energy landscape. The firm has committed up to a staggering $1 billion to North Bridge ESG LLC, a leading provider of commercial property assessed clean energy (C-PACE) financing. This move sets the stage for an unprecedented expansion in the C-PACE market, giving institutional real estate investors access to a powerful, fixed-rate financing solution that’s fast becoming a critical part of modern capital stacks.

North Bridge provides C-PACE financing to institutional borrowers in major markets nationwide. C-PACE is a fixed-rate form of financing secured by local property assessments. As a private credit solution with flexible terms, C-PACE is increasingly sought after for its accretive benefits to commercial real estate capital stacks. The financing can be used for new construction projects, renovations, acquisitions, and retroactively for recapitalization opportunities. 

“Carlyle’s $1B commitment to C-PACE, the largest to date, enables North Bridge to lead the transformation of the industry to better meet the needs of institutional sponsors and their lenders.” said Laura Rapaport, Founder and CEO of North Bridge. “We are excited to partner with Carlyle, an established leader in the private credit space, given their exceptional track record of partnering with companies to drive growth.”

"We are pleased to bring together Carlyle's significant expertise in asset backed finance and real estate credit to help commercial real estate owners address their financing needs," said Akhil Bansal, Head of Credit Strategic Solutions at Carlyle. "North Bridge has a proven capability to deliver C-PACE financing solutions of substantial size to borrowers and sponsors, and we are excited to partner with them to drive growth in an increasingly important financing market."

“Our partnership with North Bridge, a leader in providing capital market solutions to commercial real estate owners, allows us to further meet the financing demands facing the industry,” said Rachel King, a principal focused on opportunistic real estate credit at Carlyle. “Banks have pulled back from commercial real estate lending due to concentration risk in the sector, resulting in a dynamic that we believe should yield attractive relative value opportunities for C-PACE lenders with capital to deploy today.”

Read more here.

Source: Greenworks Lending

$40M C-PACE Loan Funds Data Center Development At Former Compaq Campus

Lone Star PACE and Nuveen Green Capital secured the commercial property assessed clean energy financing for the first phase of VivaVerse Solutions’ “deep retrofit” of a 774K SF facility at 11445 Compaq Center W. Drive, according to a news release. The building is part of the 66-acre campus at State Highway 249 and Louetta Road that was rebranded as Viva Center earlier this year. 

C-PACE financing has risen in popularity as banks have pulled back from lending, leaving a sizable gap in the capital stack for new construction and renovation projects, Lone Star PACE President Lee McCormick told Bisnow.

“It’s great long-term, low-cost financing for a project that helps debt service coverage ratios, that helps cash flow,” McCormick said. 

The financing incentivizes developers to make efficiency and water upgrades to their properties, making it a win-win, he said. The funding at Viva Center will be used to install energy-efficient windows, LED lighting, advanced HVAC systems and high-efficiency plumbing upgrades for the first phase of the data center, the release states.

Read more here.

Source: PERE Credit

Barings and Counterpointe Provide $315.5 Million in Construction Financing for Mixed-Use Development in Los Angeles

Barings, one of the world’s largest diversified real estate investment managers, announced today that it has provided a $160 million construction loan alongside $155.5 million in C-PACE financing from a subsidiary of Counterpointe Sustainable Advisors (“Counterpointe”) for the development of Habitat, a live-work-thrive campus in Los Angeles with creative office, luxury residential, retail, and an integrated park.

“We are thrilled to deepen our partnership with Lendlease on this exceptional development, leveraging our in-house expertise in construction lending alongside Counterpointe’s established C-PACE program to offer a customized capital solution,” said Justin Preftakes, Head of Construction Lending at Barings. “We see significant opportunity in construction lending given the pullback from more traditional sources of capital, combined with high barriers to entry, and we’re excited to be able to execute on this type of complex transformational project.”

The $160 million senior loan provided by Barings has a five-year term and the $155.5 million C-PACE financing from Counterpointe has a 30-year term. This transaction marks the third project in which Barings and Counterpointe have partnered to provide creative construction financing with a lower blended cost of capital.

“The Habitat financing, provided by the partnership of Counterpointe and Barings, offers sustainable debt capital for an exceptional Lendlease development. Our integrated offering of C-PACE and construction mortgage full stack financing encourages borrowers to construct green buildings and finance sustainable projects with competitive rates, efficient process, and certainty of execution,” said Eric Alini, Chief Executive Officer of Counterpointe. “We are proud to partner with Lendlease to help move this exciting project forward while creating sustainable investments for investors.”

Read more here.

WATCH: Unlocking the Benefits of C-PACE Financing for Hotel Developers with Jared Schlosser of Peachtree

✅ ICYMI: NYC C-PACE is Live

Source: C-PACE.COM

Key Takeaways for NYC’s C-PACE Program Guidelines

TL;DR

1. C-PACE loans are capped at 30% of the total construction costs, excluding land or property acquisition costs.

2. There is no required Savings-to-Investment (SIR) ratio for projects involving new construction or comprehensive rehabilitation.

3. The loan term under C-PACE financing has no specified limit.

4. Projects must qualify as "Low Carbon Buildings" (further defined below) designed to emit no more than 25 kg of CO2 per million BTU.

5. All installed devices must adhere to the specified carbon emission limit, except those not connected to the building's gas or fuel oil systems, those used for manufacturing or commercial kitchen operations, or those providing emergency or standby power.

Eligible Costs for PACE Financing PACE loans can fund various improvements but are strictly limited to eligible costs. These include energy-efficient improvements, energy audits, feasibility studies, and related soft costs. It's important to note that these expenses are capped at 30% of the total project costs. This ensures that PACE financing is used specifically for energy-related enhancements that align with the program's goals.

Low-Carbon Building Requirement: Projects involving major renovations or new construction must adhere to low-carbon building standards to qualify for PACE financing. This requirement minimizes the building's emissions, supporting broader environmental goals.

What Defines a Low Carbon Building? A low-carbon building is one that is engineered and operated to minimize emissions. Specifically, any device, machinery, or system installed in the building must not emit more than 25 kilograms of carbon dioxide per million British thermal units (BTU) of energy. The United States Energy Information Administration established this standard. However, there are essential exclusions to this definition, including:

1. Devices not connected to the building’s gas or fuel oil systems, used intermittently, or not for heating or hot water supply.

2. Buildings emitting more than the specified carbon dioxide limit due to necessary activities such as manufacturing, laboratory operations, hospital functions, crematoriums, or commercial kitchens.

3. Excessing the emission limit is necessary when providing emergency or standby power or other uses permitted by specific rules from the Department of Buildings.

Understanding these requirements is essential for developers and property owners leveraging PACE financing. By adhering to these standards, projects can secure the necessary funding while contributing to a more sustainable future.

More information 👇

1. NYC C-PACE: One-Pager 

2. NYC C-PACE: Program Guidelines

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

Have a story we missed? Drop us a note → weekly@c-pace.com

S

August read: Columbia Pacific & Nuveen Green Capital Lend $48M Full Stack for Townhome Project

July read: C-PACE Alert: Dwight Capital Launches C-PACE Lending Platform

June read: 4 big stories this week in C-PACE

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

Happy Friday, and welcome back. We were on holiday last week, but now, we are back to our regularly scheduled programming. C-PACE Weekly is your go-to source for the latest insights, updates, and opportunities in the Commercial Property Assessed Clean Energy (“C-PACE”) sector. Let’s dig into the latest news!

August 23, 2024

✅ NYC C-PACE is Go For Launch

Source: Rutgers

Key Takeaways for NYC’s C-PACE Program Guidelines

TL;DR

1. C-PACE loans are capped at 30% of the total construction costs, excluding land or property acquisition costs.

2. There is no required Savings-to-Investment (SIR) ratio for projects involving new construction or comprehensive rehabilitation.

3. The loan term under C-PACE financing has no specified limit.

4. Projects must qualify as "Low Carbon Buildings" (further defined below) designed to emit no more than 25 kg of CO2 per million BTU.

5. All installed devices must adhere to the specified carbon emission limit, except those not connected to the building's gas or fuel oil systems, those used for manufacturing or commercial kitchen operations, or those providing emergency or standby power.

Eligible Costs for PACE Financing PACE loans can fund various improvements but are strictly limited to eligible costs. These include energy-efficient improvements, energy audits, feasibility studies, and related soft costs. It's important to note that these expenses are capped at 30% of the total project costs. This ensures that PACE financing is used specifically for energy-related enhancements that align with the program's goals.

Low-Carbon Building Requirement: Projects involving major renovations or new construction must adhere to low-carbon building standards to qualify for PACE financing. This requirement minimizes the building's emissions, supporting broader environmental goals.

What Defines a Low Carbon Building? A low-carbon building is one that is engineered and operated to minimize emissions. Specifically, any device, machinery, or system installed in the building must not emit more than 25 kilograms of carbon dioxide per million British thermal units (BTU) of energy. The United States Energy Information Administration established this standard. However, there are essential exclusions to this definition, including:

1. Devices not connected to the building’s gas or fuel oil systems, used intermittently, or not for heating or hot water supply.

2. Buildings emitting more than the specified carbon dioxide limit due to necessary activities such as manufacturing, laboratory operations, hospital functions, crematoriums, or commercial kitchens.

3. Excessing the emission limit is necessary when providing emergency or standby power or other uses permitted by specific rules from the Department of Buildings.

Understanding these requirements is essential for developers and property owners leveraging PACE financing. By adhering to these standards, projects can secure the necessary funding while contributing to a more sustainable future.

More information 👇

1. NYC C-PACE: One-Pager 

2. NYC C-PACE: Program Guidelines

HALL Arts Hotel Scores $27M C-PACE, Popular Amid Tight Lending

Source: The Real Deal

The HALL Group used the clean energy financing to recapitalize recent upgrades to HALL Arts Hotel. 

The Dallas-based developer secured a $27 million loan from the Commercial Property Assessed Clean Energy program, which is administered through the Department of Energy to support energy efficiency projects. 

Lone Star PACE is the C-PACE Administrator for the deal. 

Read more here.

PLG provides $10.6MM in C-PACE Financing for 114-unit Project in Philly

Source: Philadelphia Business Journal

PACE Loan Group (PLG) has provided $10.6 million in C-PACE financing for a 114-unit multifamily project in Philadelphia. The site at 1440 Front St. in the city’s Fishtown neighborhood is an assemblage of six vacant city lots. The project will include five studios, 95 one-bedroom units, 14 two-bedroom units, a fitness center, a business center, and 2,083 square feet of retail space. Matthew McCormack of PLG originated the loan on behalf of the borrower, Archive Development.

Read more here.

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

Have a story we missed? Drop us a note → weekly@c-pace.com

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About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

Happy Friday, and welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the Commercial Property Assessed Clean Energy (“C-PACE”) sector. Let’s dig into the latest news!

August 9, 2024

Columbia Pacific, Nuveen Green Capital Lend $48M on Seattle Area Townhome Project

Source: River Run Woodinville

Aidan McLaughlin, Director of Originations at Nuveen Green Capital, recently closed $20 million in C-PACE financing for the VP Companies’ planned River Run Townhomes, a 31-unit luxury townhome development in a master-planned, large-scale development located in Woodinville, WA, just northeast of Seattle. Nuveen Green Capital has closed $92 million in C-PACE financing for three projects within the same development, including this $20 million tranche of C-PACE.
 
McLaughlin shared, “A lot of people don’t really think of C-PACE when they think of townhomes, and we’re looking to change that notion since it’s actually a really effective form of financing for that.”

Columbia Pacific Advisors provided the $28 million senior loan refinancing a previous construction loan it originated in 2021. Will Nelson & Billy Meyer originated the senior debt.

Read more here.

Bayview closes $3.5MM of C-PACE for Mixed-Use Development in Yonkers, NY

Source: Bayview PACE

Bayview PACE provides $3.5 million in C-PACE financing to refinance an energy efficiency retrofit on an existing mixed-use/multifamily retail asset.  

Source: Bayview PACE

Read more here. 

Additional Color Re: North Carolina C-PACE

Source: North Carolina General Assembly

Senate Bill 802 established the “commercial property assessed capital expenditure” or “C-PACE” program to be administered by the Economic Development Partnership of North Carolina (“EDPNC”). Under the C-PACE program, owners of qualifying commercial property can apply to EDPNC to be approved for long-term financing provided by private lenders to pay for property improvements that include energy efficiency, water conservation, renewable energy, and resilience measures.

Repayment of the amount financed is secured by a voluntary assessment imposed on the improved property by a participating local government pursuant to an assessment agreement with the property owner. Upon recordation of a notice of the C-PACE assessment, a C-PACE lien arises and remains in place until the financed amount is repaid in full.

The C-PACE lien is inferior to all prior and subsequent state, local, and federal taxes or liens but is superior to all other liens on the property. A property owner applying for the program is required to obtain written consent to the C-PACE assessment from holders of any existing mortgages, deeds of trust, or other liens upon the property.

North Carolina property tax law allows property tax liens to be enforced through regular mortgage-style foreclosure or through simpler in rem foreclosure proceedings. Purchasers of property in either type of foreclosure generally take title free and clear of all liens except liens for other taxes or special assessments that are not paid from the proceeds of the foreclosure sale. The C-PACE legislation also provides that such purchasers take title subject to the C-PACE lien. These changes are effective July 1, 2024.

Source: Smith Anderson

Read more here.

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

🔥 MOST READ POST FROM LAST WEEK 🔥 
Commercial Real Estate Hot Take with Greg Friedman of Peachtree Group.

Source: Peachtree Group; Bloomberg

Abigail Doolittle on LinkedIn: #commercialrealestate

It was terrific to speak with Greg Friedman, CEO at Peachtree Group, today on the state of CRE - his view skews bearish #commercialrealestate

www.linkedin.com/embed/feed/update/urn:li:ugcPost:7224866817528246272

Watch the full segment here.

Have a story we missed? Drop us a note → weekly@c-pace.com

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

August 2, 2024

Happy Friday, and welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the C-PACE industry. Let’s dig into the latest C-PACE news!

Bayview Provides C-PACE to Build Master’s Transportation HQ in Kansas City

Source: ConnectCRE

Bayview PACE has provided $20,500,000 in C-PACE financing for the construction of the 324,000-square-foot headquarters and flex/industrial facility for Master’s Transportation in Kansas City, MO, totaling $72,000,000 in total project costs. The Commercial Property-Assessed Clean Energy (C-PACE) financing provided a complementary role in the development's capital stack. The development is now under construction and will open in 2025. The remainder of the capital structure comprises a $31-million construction loan and $20 million in sponsor equity.

Read more here.

IRS Private Letter Ruling Says CPACE Loans Qualify For REMIC Transactions

Source: DALL·E 3

Overview

The IRS recently issued a Private Letter Ruling (PLR) with significant implications for the Commercial Property Assessed Clean Energy (C-PACE) financing sector. This ruling marks the first time the IRS has explicitly recognized that C-PACE assets can qualify as "obligations secured by an interest in real property" under the Real Estate Mortgage Investment Conduit (REMIC) rules. This recognition opens the door for the securitization of C-PACE loans, offering new avenues for financing and investment in energy-efficient property improvements.

Understanding the Ruling and Its Implications

C-PACE programs are designed to finance energy efficiency upgrades and renewable energy installations for commercial properties. These improvements are funded through assessments on the property, which are repaid over time via property taxes. The key feature of C-PACE assessments is that they create a lien on the property, which typically takes priority over other liens, including mortgages.

The recent PLR clarifies that these C-PACE assessments can be considered obligations secured by real property for REMIC purposes. This determination means that C-PACE loans can be included in REMICs, a popular structure for mortgage-backed securities that offers tax benefits and streamlined investment opportunities. Specifically, the ruling allows for the inclusion of C-PACE assets in REMIC transactions, potentially reducing the tax burden associated with securitizing these loans.

Benefits for C-PACE Lenders and Investors

The IRS's clarification provides greater certainty for C-PACE lenders and investors. By allowing C-PACE assessments to be treated as REMIC-eligible assets, the ruling enables the creation of new financial products, such as C-PACE-backed securities. These products can attract a broader range of investors and provide additional capital for energy-efficient property upgrades. Furthermore, the tax advantages of REMIC structures make these investments more appealing, potentially leading to lower financing costs for property owners.

Future Considerations and Opportunities

While the PLR is a significant step forward, it is important to note that it is not a blanket ruling applicable to all situations. Each PLR is specific to the facts presented by the taxpayer requesting the ruling, and as such, other market participants cannot rely on it as a precedent. Nonetheless, the ruling sets a positive precedent and may encourage the IRS to issue more general guidance on the treatment of C-PACE assets.

Additionally, the ruling leaves open questions about the suitability of C-PACE assets for other investment structures, such as Real Estate Investment Trusts (REITs). The similarity between REMIC and REIT rules suggests that C-PACE assets could also qualify as "real estate assets" under REIT provisions. Still, explicit guidance from the IRS would be beneficial. Such clarification could further expand the market for C-PACE investments, enhancing liquidity and attracting a wider pool of capital.

In Summary

The IRS's recent PLR regarding C-PACE assets and REMIC eligibility is a pivotal development for the industry. It provides a framework for the securitization of C-PACE loans and signals broader acceptance of these assets in mainstream financial markets. As the market adapts to this new guidance, we can expect to see increased investment in energy-efficient property improvements, ultimately contributing to environmental sustainability and economic growth.

Read more on the Private Letter Ruling from Dechert LLP.

Sources: Dechert LLP, JDSupra, & Cadwalader.

Commercial Real Estate Hot Take with Greg Friedman of Peachtree Group

Source: Peachtree Group; Bloomberg

Abigail Doolittle on LinkedIn: #commercialrealestate

It was terrific to speak with Greg Friedman, CEO at Peachtree Group, today on the state of CRE - his view skews bearish #commercialrealestate

www.linkedin.com/embed/feed/update/urn:li:ugcPost:7224866817528246272

Watch the full segment here.

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Have a story we missed? Drop us a note → weekly@c-pace.com

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

C-PACE Weekly News
July 26, 2024

Welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the C-PACE industry. Ready to power up your knowledge and stay ahead of the curve? Let’s dig into this week’s latest news!

The First C-PACE Project in Clark County, Nevada, Closes with $190M of C-PACE Financing

Source: Virgin Group

Virgin Hotels Las Vegas, a Curio Collection by Hilton property, is the first to use the Clark County C-PACE Program. The Sponsor financed $190,000,000 million in energy and water efficiency upgrades. Nuveen Green Capital was the capital provider, and Slipstream was the C-PACE Program Administrator.

The C-PACE Program provides long-term, fixed-rate funding to private building owners for energy efficiency, water savings, and renewable energy projects to be installed in new and existing commercial properties.

The Virgin Hotels Las Vegas project is not only the first for the program but also one of the largest C-PACE loans in the country. The energy and water improvements financed will positively impact the property owners' operating capital for many years to come.

Read more here.

Bayview PACE Provides $7M in C-PACE Financing for Adaptive Reuse Project in Hudson, NY

Source: Albany Business Journal

Bayview PACE has provided $7,000,000 in C-PACE financing for an adaptive reuse project in Hudson, about 35 miles south of Albany. Pocketbook Hudson is a conversion of the historic Pocketbook knitting mill factory dating to the 1890s into a 70,000-square-foot mixed-use property. Now under construction, the $42 million project will include a 40-room hotel, wellness center, lounge, restaurant, bar, and café, as well as spaces devoted to artwork, affordable retail, and nonprofit offices. Bayview’s long-term C-PACE  financing for Pocketbook’s energy and resiliency components was facilitated by Energy Improvement Corporation (EIC), the New York State Program Administrator for C-PACE run by Susan Morth.

Read more here.

Dwight Capital Launches C-PACE Platform

Source: Commercial Observer

Dwight Capital has launched a new Commercial Property Assessed Clean Energy (C-PACE) lending platform.

The Sunny Isles Beach, Fla.-based lender has formed Dwight Green Finance, a C-PACE loan offering led by Lisa Nordel. Nordel joined the firm last month from Peachtree Group. 

“I am thrilled to join the Dwight team and contribute to offering our clients access to a cost-effective, long-term financing solution to enhance their capital structure,” Nordel said in a statement. “As the demand for clean energy and sustainable buildings grows, C-PACE financing has been increasingly embraced by property owners across diverse asset categories.”

Nordel added that Dwight Green Finance “seamlessly complements” the firm’s other lending products, including construction and bridge loans and debt deals backed by the U.S. Department of Housing and Urban Development (HUD). 

Read more here.

Have a story we missed? Drop us a note → weekly@c-pace.com

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

DWIGHT CAPITAL LAUNCHES C-PACE LENDING PLATFORM

July 23, 2024

Source: Commercial Observer

Dwight Capital launches Dwight Green Finance, a Multifamily C-PACE Lending Platform

Dwight Capital has launched a new Commercial Property Assessed Clean Energy (C-PACE) lending platform.

The Sunny Isles Beach, Fla.-based lender has formed Dwight Green Finance, a C-PACE loan offering led by Lisa Nordel. Nordel joined the firm last month from Peachtree Group. 

“I am thrilled to join the Dwight team and contribute to offering our clients access to a cost-effective, long-term financing solution to enhance their capital structure,” Nordel said in a statement. “As the demand for clean energy and sustainable buildings grows, C-PACE financing has been increasingly embraced by property owners across diverse asset categories.”

Nordel added that Dwight Green Finance “seamlessly complements” the firm’s other various lending products that include construction and bridge loans along with debt deals backed by the U.S. Department of Housing and Urban Development (HUD). 

Read more here.

Need C-PACE financing for your project? Fill out this form here.

Have a C-PACE Tip? Drop us a note → weekly@c-pace.com

About C-PACE.COM

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

Copyright © 2024 C-PACE, LLC. All rights reserved.

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Disclaimer: The team at C-PACE, LLC (“C-PACE Weekly”) are not finance or tax professionals. This email is intended for educational purposes and does not constitute financial advice. We encourage you to conduct your own research and consult with qualified professionals before making any financial decisions. Our content, which may include affiliate links, is based on our opinions and should not be the sole basis for your decisions. We are not liable for any losses resulting from reliance on this information. Past performance is not indicative of future results.

July 19th 2024

Welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the C-PACE industry. Now, let's move on to the latest C-PACE news!

Nuveen Set to Deploy $775M of C-PACE as Green Lending Gains Traction

Nuveen is excited to present the latest edition of our quarterly newsletter. Q2 of 2024 was marked by further growth and impressive milestones for Nuveen Green Capital. Nuveen closed its largest C-PACE deal ever, which they look forward to announcing in the coming weeks, and announced the closing of $775 million in new capital commitments to its C-PACE platform – resulting in a total of $1.3 billion in C-PACE investment, or AUM, in the Nuveen Green Capital platform, closed over the last 12 months.

Read more here.

Source: Peachtree Group

Peachtree Group Closes $10.7M of C-PACE for Nashville Office Development

“For eligible projects, CPACE financing remains one of the most attractive options to bring a project to completion,” said Jared Schlosser, Peachtree’s executive vice president and head of CPACE. “We are pleased to assist Division Street Development in securing the final piece needed to complete the financing puzzle for their office development.”

Read more here.

Source: Barings

Barings & CounterpointeSRE Provide $165M in Construction Financing, including $63.3M of C-PACE for The Corbin District - Phase II in Darien, CT

Barings, one of the world’s largest diversified real estate investment managers, announced today that it has provided a $102 million construction loan alongside $63.3 million in C-PACE financing from Counterpointe Sustainable Real Estate for the development of The Corbin District – Phase II in Darien, Connecticut. Baywater Properties, which completed Phase I of the project in 2022, has launched the second phase of construction to enhance Darien’s downtown core further.

Learn more here.

Source: TheRealDeal

New Hope for NYC’s Struggling C-PACE Program

At the outset of the program, only existing buildings were eligible to qualify for a C-PACE loan - no new construction or buildings with ground leases. Even after the city opened up the program to new construction last year, state guidelines subsumed those rules requiring projects to prove a dollar of savings for every dollar of C-PACE money sought. This is known as the savings-to-investment ratio, or SIR.

Learn more here.

Source: Lone Star PACE

Lone Star PACE Hires Tenured Communications Strategist to Lead Marketing Efforts

Lone Star PACE, a leading administrator of Texas’ Property Assessed Clean Energy program, is pleased to announce the appointment of award-winning journalist and editorial strategist Olivia Lueckemeyer as the company's marketing and media relations director.

Olivia brings more than a decade of strategic communications experience to Lone Star PACE. In her new role, she will develop and execute comprehensive marketing campaigns to educate property owners, capital providers, and municipalities about the benefits of PACE. She will also focus on increasing the firm's visibility to attract new business and strengthen relationships within the industry.

Read more here.

Have a story we missed? Drop us a note → weekly@c-pace.com

About C-PACE.COM

Need C-PACE financing for your project? Fill Out This Form Here.

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

July 12th 2024

Welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the C-PACE industry. Now, let's move on to the latest C-PACE news!

North Carolina’s Gov. Roy Cooper Passes C-PACE into Law

This week, Gov. Roy Cooper signed the creation of the Commercial Property Assessed Clean Energy (C-PACE) program into law. Local governments would voluntarily join the program, thus allowing commercial property owners in their jurisdiction to borrow from an approved set of lenders to make energy-efficiency and resiliency upgrades to their commercial, industrial, agricultural, nonprofit, and multifamily residential properties. The local government would then impose a property value assessment and lien on the property until the loan is paid off through property taxes.

Read more here.

July 5th 2024

Welcome to C-PACE Weekly, your go-to source for the latest insights, updates, and opportunities in the C-PACE industry. Anyway, on to a big week in C-PACE news!

Bernalillo County and Albuquerque approve green finance program

According to the state's Economic Development Department, Bernalillo County and Albuquerque are the first local governments in New Mexico to pass legislation opting into the New Mexico C-PACE program.

New Mexico adopted the C-PACE (Commercial Property Assessed Clean Energy) program in 2023 to help eligible property owners receive long-term financing for many energy-efficient and climate-resilient improvements.

Read more here.

A note from CEO & Founder of Petros PACE Finance.

Just this year we cracked the code and can now offer C-PACE for condominiums—a breakthrough in our business that wouldn’t have happened unless we were consistently pushing to be better.

Read more here.

Downtown Hotel Project Lands $4M in C-PACE Funding

The Burg Hotel under construction on South King Street isn’t just groundbreaking for its vision of bringing a hotel use downtown after a half-century; it also is Loudoun County’s first development to qualify for C-PACE funding.

Read more here.

New Hampshire: Commercial Solar Financing + Government Incentives

C-PACE financing lets commercial property owners fund energy efficiency and clean energy improvements through a voluntary property tax assessment. State or local governments provide the funding, which is repaid over a long period, usually matching the system’s lifespan. 

Read more here, as well as Wisconsin Solar Financing.

Velliv invests €94m in Nuveen private equity impact fund

Velliv invested in Nuveen’s first such fund back in 2020 — a fund which Nuveen said today had won more than $200m of investor capital, in turn investing in eight global businesses. The most recent had been in US clean energy technology platform and community solar servicer Perch Energy, which was aiming to expand access to renewable energy, Nuveen said.

Read more here. 

Have a story we missed? Drop us a note → weekly@c-pace.com

About C-PACE.COM

Want C-PACE financing for your project? Fill Out This Form Here. 

C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → info@c-pace.com.

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM

This week in CPACE… 29th June 2024.

A joint venture between Machine Investment Group and Taconic Capital Advisors has landed $90.4 million of retroactive Commercial Property Assessed Clean Energy (C-PACE) financing for the recapitalization of two adjacent Hyatt-branded hotels in Los Angeles.

Nuveen Green Capital (NGC) provided a $49 million C-PACE loan on the sponsorship’s Thompson Hollywood hotel and $41.4 million of C-PACE financing for its Tommie Hollywood property. Proceeds from the debt package were used to refinance existing construction debt on both hotels while also addressing building improvements.

Read more here.

Peachtree Group announced $73M in CPACE financing.

Officials of Peachtree Group announced that the company originated $73 million in a construction loan and CPACE financing for the development of a 263-room dual-brand Home2 Suites and Tru by Hilton Hotel in San Diego, Calif., on behalf of Baxter Hotel Group, a San Diego‐based, vertically integrated real estate development and management company.

Read more here.

NC Senate passes CPACE funding program to make clean energy upgrades more access

"It's a monumental step in clean energy here in North Carolina," Abele said.

More than 38 states have already passed legislation for CPACE programs and more than $2 billion in projects have been financed nationwide, according to the Department of Energy.

Read more here.

To read the full senate bill you can here.

Nuveen Green Capital Finances $26.5 Million C-Pace Cold Storage Project

Clean Energy Real Estate Financing Firm Announces First C-PACE Funding in Jacksonville

Read more here.

About C-PACE.com

Want to get access to deals or put your project in front of 1,000’s of C-PACE investors, lenders and prospects. Reach out to us to chat further.

C-PACE.COM was founded by commercial real estate investment professionals with meaningful experience in real estate investment banking and private equity. We seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients through C-PACE Financing.

We Provide Low-Cost, Long-Term, Fixed-Rate, 100% Non-Recourse C-PACE Loans To CRE Developers, Investors, And Owners Seeking To Reduce Their Carbon Footprint, Lower Their WACC, And Increase Property Values.

Eligible Properties for C-PACE: Criteria and Examples

Commercial Property Assessed Clean Energy (C-PACE) programs provide an innovative financing mechanism for property owners to implement energy efficiency, renewable energy, and water conservation upgrades. Understanding the criteria for eligible properties is crucial for stakeholders looking to leverage C-PACE financing. This article outlines the key criteria for eligibility and provides examples of properties that have successfully utilized C-PACE financing.

Criteria for C-PACE Eligibility

C-PACE programs typically have specific criteria that properties must meet to qualify for financing. While these criteria can vary by state and program, the following are common requirements:

1. Property Type: C-PACE is generally available for commercial, industrial, agricultural, and multi-family properties (with five or more units). Some states also allow non-profit and government properties to participate.

2. Ownership: The property must be owned by a private entity or non-profit organization. Owner-occupied properties are eligible, as well as those with tenants.

3. Property Location: The property must be located within a jurisdiction that has adopted C-PACE enabling legislation. Local governments must opt into the program for properties within their boundaries to qualify.

4. Project Scope: The project must focus on improvements that increase energy efficiency, generate renewable energy, or conserve water. Eligible improvements often include HVAC systems, insulation, solar panels, LED lighting, and water-efficient fixtures.

5. Financial Viability: The property must have sufficient equity to support the additional assessment, and the owner must be current on property taxes and mortgage payments. Some programs also require a demonstration of energy savings or positive cash flow from the project.

6. Lender Consent: Mortgage holders must consent to the C-PACE assessment, as it takes precedence over other claims in the event of foreclosure.

Examples of Eligible Properties

To provide a clearer understanding, here are examples of properties that have successfully utilized C-PACE financing:

1. Office Buildings

Example: The Durst Organization's 825 Third Avenue, New York, NY

• Project Details: This office building underwent extensive energy efficiency upgrades, including HVAC system improvements, LED lighting installation, and building envelope enhancements.

• Outcome: The upgrades resulted in significant energy savings, improved tenant comfort, and increased property value. The project was financed through the Energize NY C-PACE program.

2. Hotels

Example: The Wyndham Garden Hotel, Austin, TX

• Project Details: The hotel installed solar panels, upgraded its HVAC system, and replaced outdated lighting with energy-efficient LED fixtures.

• Outcome: The energy savings from these upgrades reduced operating costs and enhanced the hotel's sustainability profile. The project was financed through the Texas PACE Authority.

3. Multi-Family Residential

Example: The Castle Square Apartments, Boston, MA

• Project Details: This multi-family property implemented comprehensive energy efficiency measures, including new insulation, high-efficiency windows, and a state-of-the-art HVAC system.

• Outcome: The improvements led to lower energy costs for residents and increased the overall value of the property. The project was financed through the Mass Save program.

4. Industrial Facilities

Example: The Taylor Farms Processing Plant, Salinas, CA

• Project Details: The industrial facility installed a large-scale solar energy system and upgraded its refrigeration units to more energy-efficient models.

• Outcome: The energy savings from the solar installation and refrigeration upgrades significantly reduced operational costs. The project was financed through the CaliforniaFIRST program.

5. Agricultural Properties

Example: The North Coast Vineyards, Sonoma County, CA

• Project Details: The vineyard installed solar panels, upgraded irrigation systems, and implemented water conservation measures.

• Outcome: The sustainability upgrades enhanced the vineyard's environmental stewardship and reduced water and energy costs. The project was financed through the Sonoma County Energy Independence Program (SCEIP).

Conclusion

Understanding the eligibility criteria for C-PACE financing is essential for property owners and stakeholders aiming to undertake energy efficiency, renewable energy, and water conservation projects. By meeting the program requirements and leveraging the benefits of C-PACE, properties can achieve significant energy savings, reduce operational costs, and enhance their sustainability profiles.

Footnotes:

1. Energy.gov. (2023). C-PACE Financing. Retrieved from Energy.gov.

2. PACENation. (2023). C-PACE Programs by State. Retrieved from PACENation.

C-PACE financing continues to provide valuable opportunities for a wide range of property types. By understanding the criteria and exploring successful examples, property owners can make informed decisions about pursuing C-PACE financing for their energy and sustainability projects.

How C-PACE Financing Works: Step-by-Step Guide

Commercial Property Assessed Clean Energy (C-PACE) financing is an innovative tool that allows commercial property owners to finance energy efficiency, renewable energy, and water conservation projects. By attaching the financing to the property rather than the owner, C-PACE offers a unique way to fund these improvements with long-term, fixed-rate capital. This guide will walk you through the step-by-step process of securing C-PACE financing, ensuring you understand each stage and can successfully navigate the system.

Step 1: Assess Eligibility

The first step in the C-PACE financing process is to determine if your property and project are eligible. Eligibility criteria typically include:

• Property Type: C-PACE is available for commercial, industrial, agricultural, and multi-family residential properties (five or more units).

• Project Type: Eligible projects usually include energy efficiency upgrades, renewable energy installations, and water conservation measures.

• Location: Ensure your property is located in a jurisdiction with an active C-PACE program.

To check eligibility, you can visit your state or local C-PACE program's website or contact a program administrator.

Step 2: Identify Improvements

Next, identify the specific improvements you want to make. Common projects financed through C-PACE include:

• Energy-efficient HVAC systems

• Solar panel installations

• LED lighting upgrades

• Insulation and weatherization

• Water-saving fixtures and systems

Consult with an energy auditor or a C-PACE project developer to determine the best upgrades for your property and estimate the potential energy savings.

Step 3: Select a C-PACE Program Administrator

Different states and localities may have different program administrators. These administrators manage the C-PACE process and can provide guidance and resources. Some states have multiple administrators offering various services, while others have a single, centralized authority.

Step 4: Develop the Project

Work with your chosen program administrator and a qualified contractor to develop your project. This involves:

• Energy Audit: Conducting a thorough energy audit to identify potential savings and scope of work.

• Project Plan: Creating a detailed project plan that outlines the improvements, costs, and expected savings.

• Financing Proposal: Preparing a financing proposal that includes the total project cost, financing terms, and repayment schedule.

Step 5: Secure Financing

Once your project plan is developed, you will need to secure C-PACE financing. This involves:

• Submitting Application: Submit your application, including the project plan and financing proposal, to the program administrator.

• Underwriting: The program administrator will review the application, perform underwriting, and approve the financing.

• Closing the Deal: After approval, you will sign the financing agreement, which will be recorded as a special assessment on your property.

Step 6: Implement the Project

With financing secured, you can begin implementing your project. This stage includes:

• Hiring Contractors: Hiring qualified contractors to carry out the improvements.

• Construction: Overseeing the construction process to ensure the project is completed on time and within budget.

• Verification: Conducting a post-project verification to confirm that the improvements were installed correctly and are performing as expected.

Step 7: Repayment

C-PACE financing is repaid through a special assessment added to your property tax bill. Key features of the repayment process include:

• Fixed Payments: Payments are typically fixed over the term of the financing, making it easier to budget.

• Long-Term: Terms can extend up to 20 years, aligning the repayment with the lifespan of the improvements.

• Transferable: The assessment remains with the property, not the owner, making it transferable upon sale.

Conclusion

C-PACE financing offers a robust framework for funding energy efficiency, renewable energy, and water conservation projects. By following these steps, property owners can unlock the benefits of C-PACE and make meaningful improvements to their buildings.

If you have specifics for your state, please reach out.

C-PACE Legislation: A Look at Policy and Legal Framework

Commercial Property Assessed Clean Energy (C-PACE) programs have gained traction as a mechanism to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. These programs allow property owners to finance improvements through a voluntary property assessment, which is repaid over time through the property tax bill. However, the legislative and legal frameworks governing C-PACE vary significantly across different states in the U.S. This article delves into the policy and legal nuances of C-PACE legislation across key states, providing a comprehensive understanding of the landscape.

Understanding C-PACE

C-PACE programs are designed to help commercial property owners overcome the high upfront costs of energy improvements by spreading the cost over a period of up to 20 years. The unique aspect of C-PACE is that the financing is attached to the property rather than the owner, making it transferable upon sale. This feature, along with the potential for positive cash flow from energy savings, makes C-PACE an attractive option for property owners and investors.

States with Active C-PACE Programs

C-PACE programs are currently active in several states, each with its unique legislative framework. The following sections provide an overview of key states where C-PACE is operational, highlighting the differences in policy and implementation.

California: A Comprehensive Market

California was one of the first states to adopt C-PACE legislation with AB 811 and AB 474, enabling property owners to finance energy improvements through a special assessment. California's C-PACE market is one of the largest in the country, with multiple program administrators offering a wide range of services. The state has a comprehensive approach, covering energy efficiency, renewable energy, and water conservation projects.

Key Features:

• Open market with multiple administrators

• Wide range of eligible improvements

• Strong market presence with significant project funding

Colorado: Focus on Energy Efficiency

Colorado's C-PACE program, enabled by HB 16-1270, focuses on energy efficiency, renewable energy, and water conservation projects. The program is administered by Colorado C-PACE, which provides technical assistance and streamlined processes for property owners.

Key Features:

• Centralized administration by Colorado C-PACE

• Emphasis on energy efficiency projects

• Technical assistance for project development

Florida: Including Resiliency

Florida's C-PACE legislation, established by HB 7179, includes energy efficiency, renewable energy, and resiliency improvements. The state has multiple program administrators, including the Florida PACE Funding Agency, allowing for a diverse range of project types.

Key Features:

• Includes resiliency improvements (e.g., hurricane protection)

• Multiple administrators providing program flexibility

• Strong focus on both energy and resiliency

New York: Demonstrating Energy Savings

New York's C-PACE program, governed by Article 5-L of the General Municipal Law, requires property owners to demonstrate energy savings as a condition for financing. The program is administered by Energize NY and supports a wide range of energy and water conservation projects.

Key Features:

• Requirement to demonstrate energy savings

• Administered by Energize NY

• Comprehensive support for energy and water projects

Texas: Open Market Administration

Texas adopted C-PACE through SB 385 and SB 2452, emphasizing an open market approach with multiple program administrators. The Texas PACE Authority oversees the program, ensuring compliance and providing resources for property owners.

Key Features:

• Open market administration with multiple options

• Strong emphasis on compliance and oversight

• Flexibility in project types and financing

Connecticut: Pioneering State-Wide Program

Connecticut was the first state to implement a state-wide C-PACE program under Public Act No. 11-80. Administered by the Connecticut Green Bank, the program focuses on energy efficiency and renewable energy projects, offering a streamlined process for property owners.

Key Features:

• First state-wide C-PACE program

• Centralized administration by Connecticut Green Bank

• Focus on energy efficiency and renewable energy

Conclusion

C-PACE programs offer a valuable financing mechanism for property owners seeking to improve energy efficiency, incorporate renewable energy, and enhance resilience. However, the legislative and administrative frameworks vary significantly across states, impacting the implementation and success of these programs. By understanding these differences, property owners, investors, and other stakeholders can better navigate the C-PACE landscape and leverage the opportunities it presents.

The Importance of ESG in Real Estate: Exploring the Connection

Environmental, Social, and Governance (ESG) criteria have become increasingly vital in various sectors, including real estate. These standards not only reflect a company’s commitment to sustainable practices but also play a crucial role in attracting investment, enhancing reputation, and ensuring long-term profitability. For property investors, private equity firms, venture capitalists, lenders, borrowers, brokers, CEOs, and senior management, understanding and integrating ESG principles can lead to significant competitive advantages.

Understanding ESG

Environmental: This component focuses on a company's impact on the planet. In real estate, it includes energy efficiency, waste management, pollution reduction, and sustainable building practices. Properties with strong environmental credentials often have lower operating costs and are more attractive to tenants and buyers who prioritize sustainability.

Social: The social aspect examines how companies manage relationships with employees, suppliers, customers, and communities. In the context of real estate, this could mean ensuring safe working conditions, contributing to community development, and fostering diversity and inclusion within the workforce and tenant base.

Governance: Governance pertains to the leadership, audits, internal controls, and shareholder rights within a company. For real estate firms, good governance might involve transparent decision-making processes, ethical business practices, and accountability to stakeholders.

Why ESG Matters in Real Estate

1. Investor Demand: Investors are increasingly considering ESG factors in their decision-making processes. A survey by PwC found that 79% of investors consider ESG risks and opportunities an important factor in their investment strategy*. Real estate companies that prioritize ESG are more likely to attract investment from institutional investors who are keen on sustainable and responsible investing.

2. Regulatory Compliance: Governments worldwide are implementing stricter regulations around sustainability. In the U.S., for example, cities like New York and San Francisco have introduced laws requiring buildings to meet specific energy efficiency standards. Real estate firms that proactively adopt ESG practices are better positioned to comply with these regulations and avoid penalties.

3. Market Differentiation: In a competitive market, ESG can be a differentiator. Properties that are environmentally friendly and socially responsible are more appealing to a growing segment of tenants and buyers who value sustainability. This can translate to higher occupancy rates, lower tenant turnover, and premium rental or sale prices.

4. Risk Mitigation: ESG practices can help mitigate various risks. Environmental risks such as climate change and resource scarcity can impact property values and operational costs. Social risks, including community relations and labor practices, can affect a company’s reputation and legal standing. Good governance helps ensure that these risks are managed effectively.

5. Long-Term Value Creation: Sustainable practices often lead to cost savings, higher property values, and improved tenant satisfaction over the long term. Energy-efficient buildings, for instance, reduce utility costs, while strong community ties and ethical practices enhance brand reputation and stakeholder trust.

Implementing ESG in Real Estate

Energy Efficiency: Implementing energy-efficient technologies such as LED lighting, high-efficiency HVAC systems, and smart building management systems can significantly reduce energy consumption and costs. Certification programs like LEED (Leadership in Energy and Environmental Design) provide frameworks for measuring and improving building performance.

Sustainable Building Materials: Using sustainable materials like recycled steel, bamboo, and low-VOC (volatile organic compounds) paints can reduce environmental impact. Additionally, designing buildings for adaptability and longevity minimizes the need for frequent renovations and reduces waste.

Community Engagement: Engaging with local communities and considering their needs can enhance a company’s social license to operate. This might involve supporting local businesses, investing in community infrastructure, and ensuring that developments provide social benefits such as affordable housing or public spaces.

Diversity and Inclusion: Promoting diversity and inclusion within the workforce and among tenants can lead to a more innovative and resilient organization. This includes implementing policies that encourage diverse hiring, providing training on unconscious bias, and creating inclusive spaces.

Transparent Governance: Establishing clear governance structures and processes is critical. This includes regular audits, transparent reporting, and ensuring that decision-making processes are inclusive and accountable. Companies can also adopt frameworks such as the Global Reporting Initiative (GRI) to guide their ESG reporting.

The Future of ESG in Real Estate

As the importance of ESG continues to grow, real estate companies that integrate these principles into their operations will be better positioned to thrive. The shift towards sustainability is not just a trend but a fundamental change in how businesses operate. By focusing on ESG, real estate firms can create value not only for their shareholders but also for society at large.

Footnotes:

1. PwC. (2022). ESG and the Capital Markets. Retrieved from PwC.

By adopting a comprehensive ESG strategy, real estate companies can meet the demands of investors, comply with regulations, differentiate themselves in the market, mitigate risks, and create long-term value. The future of real estate is undeniably intertwined with sustainability, making ESG an essential component of any forward-thinking real estate strategy.

History of C-PACE: How and Where It Started

The concept of Property Assessed Clean Energy (PACE) financing began to take shape in the early 2000s, with the inception of C-PACE (Commercial PACE) emerging as a crucial development in the evolution of sustainable financing. This article delves into the origins, legislative advancements, and the pivotal role that C-PACE has played in transforming the commercial real estate landscape in the United States.

The Genesis of PACE

PACE financing was initially conceived by Thomas D. Peterson, founder of the Center for Climate Strategies, and was later developed and implemented by Cisco DeVries, who was serving as the Chief of Staff to the Mayor of Berkeley, California, in 2008*. The program was designed to address the upfront cost barriers of green energy improvements, allowing property owners to finance energy efficiency and renewable energy projects through a property tax assessment that could be repaid over time.

The Transition to Commercial Applications

Recognizing the potential of PACE for commercial properties, the first commercial PACE program was launched in 2009. It aimed at enabling commercial property owners to achieve energy savings while also addressing broader environmental goals. Unlike residential PACE, C-PACE focuses on larger-scale projects within the commercial sector, including office buildings, industrial properties, and multifamily residential buildings larger than four units.

Legislative Milestones

The expansion of C-PACE across the United States has been significantly driven by state-level legislation. One of the pivotal moments was the adaptation of PACE legislation that included commercial properties, starting with California and soon followed by other states. Each state's legislation outlines the guidelines under which municipalities can offer PACE programs, often leading to diverse implementations of C-PACE across different jurisdictions*.

Growth and Adoption Across the States

C-PACE programs have now been authorized in over 36 states plus the District of Columbia. The adaptation rate among states varies, with some like Connecticut, establishing a statewide C-PACE program that has set a benchmark for other states in terms of program management and the scale of financed projects. The adoption of C-PACE has been influenced by factors such as local economic conditions, state-specific environmental priorities, and the presence of supportive legislative frameworks.

Challenges and Evolution

Despite its benefits, the adoption of C-PACE has faced challenges, including regulatory hurdles and the need for greater awareness among property owners and financiers. Furthermore, the variability in program administration across different states has led to a lack of uniformity, potentially complicating multi-state portfolio applications. However, these challenges have also driven innovation within the sector, leading to more streamlined approaches and enhanced program features that better meet the needs of commercial property owners.

The Impact of C-PACE

The impact of C-PACE financing on the commercial real estate market has been profound. It has enabled significant energy efficiency improvements and the adoption of renewable energy across diverse property types. By reducing the energy costs and improving the sustainability profile of properties, C-PACE has also contributed to increasing property values and attracting green-conscious tenants.

Conclusion

C-PACE financing has carved a niche in the landscape of sustainable financing by addressing upfront cost barriers and aligning the benefits of energy savings with repayment schedules. As environmental concerns continue to drive policy and investment decisions, C-PACE is likely to play an even greater role in shaping the future of commercial real estate development.

* Peterson, T. D., & DeVries, C. (2008). "Origin and Implementation of PACE Financing".

* State Legislation for Commercial PACE Programs. (2023).