Browse Our FAQ

How PACE Financing Works
PACE-Eligible Improvements
When to use PACE
Financing Parameters
PACE in the Capital Stack
How PACE Programs Work
Understand C-PACE vs. R-PACE
Accounting Treatment
Payments & Disbursements
Lender Questions

PACE in the Capital Stack










var $ = jQuery.noConflict();
$(function () { // document ready
$(‘.facebook’).hover(function () {
$(‘.fb-icon’).toggleClass(‘hide’);
$(‘.fb-hover-icon’).toggleClass(‘hide’);
});
$(‘.twitter’).hover(function () {
$(‘.twitter-icon’).toggleClass(‘hide’);
$(‘.twitter-hover-icon’).toggleClass(‘hide’);
});
$(‘.linkedin’).hover(function () {
$(‘.linkedin-icon’).toggleClass(‘hide’);
$(‘.linkedin-hover-icon’).toggleClass(‘hide’);
});
});

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

https://www.cleanfund.com/wp-content/uploads/2018/08/Cap-Stack-Stand-alone-01.png

 

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.

From Our Resource Center


Webinar

This webinar highlights the newest component of the capital stack – Commercial PACE (“C-PACE”)

Learn More


Article

C-PACE Financing’s competitive rates and flexible application gaining a key role in the capital stack

Learn More


PACECapital

Long-term, fixed-rate, non-recourse financing for energy efficiency, water conservation & resiliency projects for both new construction & building upgrades

Learn More


SolarPACE

Solar financing designed with features and flexibility to meet the demands of commercial property owners. Immediate positive cash flow with 30 year terms

Learn More


PACEPartner

Easily provide a PACE financing option to your clients with customized PACE tools & resources, online quote tool and project management platform

Learn More

var $ = jQuery.noConflict();
// Default Slider
$(‘#base-multi-functional-slider-5bc64e39516ef’).slick({
infinite: true,
centerMode: false,
slidesToShow: 3,
slidesToScroll: 3,
responsive: [
{
breakpoint: 1025,
settings: {
arrows: false,
slidesToShow: 2,
slidesToScroll: 1,
dots: true,
variableWidth: false,
centerPadding: 0
}
},
{
breakpoint: 991,
settings: {
arrows: false,
slidesToShow: 2,
slidesToScroll: 1,
dots: true,
variableWidth: false,
centerPadding: 0
}
},
{
breakpoint: 668,
settings: {
arrows: false,
slidesToShow: 2,
slidesToScroll: 1,
dots: true,
variableWidth: false,
centerPadding: 0
}
},
{
breakpoint: 480,
settings: {
arrows: false,
slidesToShow: 1,
slidesToScroll: 1,
dots: true,
variableWidth: false,
centerPadding: 0
}
}
]
});
#base-button-id-5bc64e395427e .base-button {
color:#ffffff;
background-color:#000000;
}

back to top

Get Started Today

CleanFund provides better capital for better buildings, making financing projects easy and affordable. We also make it easy to run indicative pricing with CleanQuote.


Get Immediate Pricing