Long-term financing to efficiently manage a building’s capital stack during new construction and renovations while improving building performance with reduced operational expenses and repayment through property taxes
- Non-recourse, non-accelerating capital for all commercial, multifamily, and industrial property types
- 100% funding of eligible measures in retrofits includes all hard, soft, and related work costs
- Significant funding in new construction development and property rehabilitation fills gaps in capital stack replacing expensive preferred equity and mezzanine debt
- Repayment may be deferred for several years and/or structured with an interest-only period
- Facilitates code compliance with mandated carbon reduction and resiliency measures
C-PACE programs are public-private partnerships that incentivize commercial property owners to prioritize infrastructure investments that advance the building’s performance with private capital funding
- Communities are able to provide funding for public safety, carbon reduction, job creation, and economic development at zero cost to taxpayers
- State and local legislators can address specific social objectives and social goods to meet climate goals and to provide funding for risk mitigation from earthquakes, floods, fire, windstorms and other natural disasters
- Building tenants and occupants benefit from reduced utility costs, increased building performance, and operational resiliency during grid failure
- Greening a building may lead to increased rents, collateral value, and lease-up rates according to early studies
CounterpointeSRE has funded the following asset classes:
Industrial and warehouse
Additional Information on Commercial PACE
PACE Eligible Improvements
Commercial PACE financing encompasses a vast array of improvements in both new construction and existing properties, ranging from roofing, building envelope, and HVAC to lighting for enhanced efficiency. It also supports renewable energy, water conservation, and resilience against storms, floods, and seismic events.
Retroactive funding is a valuable resource for owners seeking to recapitalize development and renovation investments and have a strategic tool to retire construction debt with a variable look-back period determined by the local program guidelines.
PACE for Green Roofs
Engineered roofing as seen at this hotel can add value by increasing energy efficiency, reducing storm-water run-off, and transforming unused rooftop space into a building amenity to be enjoyed by tenants. In addition, financing a Green Roof installation with PACE can yield positive cash flow.
Commercial PACE is legislated in most states with C-PACE programs active and operating in many states and cities. Where not active, we will work with property owners to provide a solution.
Answers to common questions about property assessed clean energy (“PACE”) financing.
How much PACE financing can my property support?
PACE assessments have the potential to fund between 20-35% of your property’s stabilized valuation, taking into account factors such as location, asset class, and construction type. Our team is readily available to provide a expert guidance of your available options. Call us or submit a request for evaluation to begin the process of finding the ideal solution for your needs.
What are the funding terms and rates for C-PACE financing?
The length of the PACE Special Assessment is determined by the useful life of the equipment to be installed and can range from 5 to 35 years. The assessment is fully amortizing after a period of capitalized interest, with no guarantees or financial covenants required. Interest rates are subject to market conditions, the specific property and project, and aligned to fit with your preferred prepayment terms. Please contact us or submit quote request for current rates and evaluation of options.
My project is not planned to start until next year. When should I apply?
We invite applications at any stage of the process with no obligation, and it is common for sponsors to apply years in advance of groundbreaking or demolition to gain a comprehensive understanding of their capital stacks.
By providing the required documentation for underwriting, we can assess the net proceeds and enhance the upgrades to improve building performance and reduce operational expenses.
Considering the wide variation in PACE process and requirements across different jurisdictions, is it user-friendly for portfolio owners?
Sponsors with a significant number of real estate assets have placed their trust in CounterpointeSRE’s expert assistance and have experienced the efficiency of our streamlined process. Upon receipt of an excel worksheet with property addresses, our team can screen hundreds of properties within minutes. Our automated system enables quick underwriting and closing, providing easy funding options for portfolio owners.
Will adding PACE to the capital stack delay closing of the senior loan?
Once third party reports are received, PACE assessments are typically funded within 30-60 days. The technical project review for PACE, (energy report), is usually completed within the same timeframe as the appraisal and environmental reports. The required reports are in line align with the requirements of the senior lender and many sponsors find the PACE process quick and straightforward.
How are funds disbursed during construction?
The allocation of PACE funds for construction adheres to a procedure similar to that of construction loans. In situations where there are multiple sources of funding, our team works directly with the lenders to ensure a seamless disbursement process.PACE funds can be allocated at different points throughout the construction process, whether it be prior to or pari-passu senior funding, mid-construction, or after completion for up to three years in most jurisdictions.
What is the process for selling or refinancing the mortgage on my property?
Upon refinancing, sale, or transfer of ownership of your property, the Assessment transfers to the new buyer similar to any other property tax. There are no fees or approvals required.
What is CounterpointeSRE's role?
Through public-private partnerships, Counterpointe Sustainable Real Estate collaborates with the government to invest in nationwide sustainable infrastructure. By directly allocating funds, we are able to support the development of new construction and retrofit projects that promote long-term sustainability and resilience.
CounterpointeSRE evaluates PACE eligibility, conducts cost benefit analysis for sponsors, and procures all necessary third party reports. Moreover, CounterpointeSRE submits all required documentation to the local PACE program administrator to secure necessary approvals.
Counterpointe Energy Solutions, a respected affiliate of CounterpointeSRE, administers PACE programs and may evaluate applications for local government in multiple regions, including California, Florida, Illinois, and the City of Chicago.
What can I do if PACE is not available in my city or state?
CounterpointeSRE is dedicated and highly experienced at implementing PACE at the property’s location, while providing a range of additional financial solutions as a lender with mortgage and energy project finance options. Our expertise in establishing some of the first PACE programs in the nation with full stack capability sets us apart, ensuring a seamless and efficient process for sponsors.