PACE in the Capital Stack

A New Financing Tool for Your Capital Stack

CleanFund’s financing can replace or reduce expensive mezz debt or equity with no payment for up to 2 years and provides the best solution for capital constraints faced when investing in lifesaving improvements.

Typical Financing Options: Pay out of pocket. Take out loan from bank (1st or 2nd). Raise equity from partners. Or, Use PACE

 

Typical Mezzanine Debt
10-15% Rate & 2-4 Pts
Max LTV: 80-85%
Recourse
Typical Preferred Equity
10-15% Rate & 2-4 Pts
Max LTV: 90-95% + profit share
Recourse
Typical PACE
6-7% Rate & 1.25-2.5 Pts
Max combined LTV: 100%
Non-Recourse

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Higher Property Value


Higher Cash Flow | By stretching out payments over a long period of time, properties generate much more benefit from energy and water improvements.

 

Lease-Up and Retention | Our financing helps to modernize your building, making it more efficient and comfortable. The result? Happier occupants and lower tenant turnover.

 

Greater Marketability | Enables the kinds of improvements that modernize your building and reduce potential price concessions that buyers may demand to upgrade the property.

 

Lower Cost


Lower Rates | Than mezzanine debt and equity that otherwise might be used to install long-lasting improvements. Debt financing generally provides shorter terms, higher annual payments and/or large balloon payments.

 

Tenant Pass-Through | Most properties can pass through property taxes as an operating expense to tenants, helping to fully or significantly reduce the effective cost of capital.

 

Capital Preservation


Conserve Equity | Why use partners’ capital if you can avoid it?

 

No Payments for up to 2 Years | Allows you to capitalize interest payments into the financing amount to delay making any payments for up to 2 years.

 

No Repayment Upon on Sale | Automatically transfers with the property upon a sale, while providing for the ability to repay if desired.

 

Less Debt | Our long-lasting assessment allows existing and future owners to avoid incurring debt to pay for long-term improvements.

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CleanFund provides better capital for better buildings, making financing projects easy and affordable.