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CleanFund Featured in CMBA Magazine

PACE: A Complement to Traditional Mortgage Financing to Increase Property Values

Winter 2015 – California Mortgage Finance News

CleanFund Commercial PACE Capital was recently featured in California Mortgage Finance News discussing PACE financing and lender consent.

Some highlights:

  • For existing mortgage clients who do not fit the traditional underwriting criteria or with limited debt and equity capacity, PACE can make a building upgrade feasible where lenders and equity partners benefit from the lower operating costs, tenant retention/attraction, and overall increased building value
  • Commercial PACE transactions require lender consent with a maximum loan to value ratio to protect existing lenders
  • From a rate perspective, PACE typically falls just north of traditional debt and significantly less than equity or mezz
  • Direct PACE lending complements traditional mortgage products by structuring loans with:
    • Required Lender Consent
    • No Acceleration Upon Default
    • Maximum Loan-to-Value Ratio
    • No Prior Defaults

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