By Woolsey McKernon and Chris Robbins, CleanFund
Scotsman Guide | Nov. 1, 2018


 

As the Commercial Property Assessed Clean Energy (C-PACE) financing sector matures, more real estate owners, developers and mortgage brokers are discovering that C-PACE offers the kind of flexibility and lower costs of capital that can move the needle on certain projects. It can play a critical role in the capital stack.

Commercial mortgage brokers who are educated on the versatility of this product are using it to create new business opportunities and to differentiate themselves from their fellow brokers in the marketplace.

At its roots, C-PACE is a financial tool that was developed to help update the nation’s aging and inefficient infrastructure, and to make it easier for property owners to invest in energy efficiency, water conservation, renewable energy and safety upgrades that improve their buildings and the environment. These tangible benefits are heralded by lenders that are now considering how C-PACE helps increase collateral value.

As importantly, commercial mortgage brokers who include C-PACE in their product offerings can provide potential clients with access to a direct form of less-expensive capital. C-PACE lenders typically charge interest of 6 percent to 7 percent. As a result, C-PACE financing gives brokers a competitive advantage with potential clients. It also ultimately helps to close more deals.

Brokers, developers and investors who stay on top of financing trends are learning how to execute successful C-PACE deals, including how to use new online lending platforms to prequalify certain projects and get indicative pricing that can be easily included in deal proposals. If you’re still learning about this product, however, you may have some questions, including: Why is C-PACE’s popularity growing so fast and where is it available?

 

Related Articles

Financing Program That Builds Better Buildings Poised For Breakout

Forbes: CleanFund's C-PACE financing as a superior long-term option for major upgrades to commercial buildings.

Learn More

C-PACE Gaining a Key Role in the Capital Stack

C-PACE Financing’s Competitive Rates and Flexible Application Gaining Key Role in the Capital Stack

Learn More

From Solar to Seismic: The Rise of C-PACE

From Solar to Seismic: The Rise of Commercial PACE Finance as a Mainstream Source of Cost Effective Capital

Learn More

$24 Million in C-PACE for the Redevelopment of Historic Downtown Dallas Property

CleanFund finances the largest C-PACE project to date in Texas and is the second largest single-funded C-PACE project in the nation.

Learn More

CleanFund and Live Oak Bank Team Up to Deliver Solution for New Construction of Home2 Suites Hotel

PRESS RELEASE: 94-room Northern California hotel to use $4.3 million in CleanFund C-PACE financing for energy, mechanical and water systems.

Learn More

Urban Land Magazine: Use of PACE is Growing

Use of PACE Financing for Renovations, Construction Growing for Commercial Buildings.

Learn More