Guide to Florida Commercial
PACE Financing
Benefits of C-PACE
Long-term financing for energy efficiency, renewable energy and wind resistant improvements made to commercial and multifamily properties with repayment through a property tax assessment.
- Non-recourse, non-accelerating capital for commercial, multifamily and industrial property types
- 100% project financing includes hard, soft and related costs
- Serves as a critical component of the commercial real estate capital stack for new construction
- Payments may be deferred for several years or structured with an interest-only period
- Facilitates corporate sustainability goals and compliance with mandated capital improvements.
How C-PACE works
C-PACE programs are public-private partnerships that foster the adoption of energy efficiency, renewable energy and resiliency improvements in commercial properties.
- property owners gain access to private capital to reduce operational expenses, to preserve eq1ity, and to lower development costs
- communities benefit from carbon reduction, public safety, and economic development at zero cost to taxpayers
- tenants and occupants can benefit from reduced utility costs, power during outages, and increased safety during hurricanes
- state and local legislators can address specific planning initiatives such as carbon emission reduction goals
C-PACE Financing for Code Compliance
Trane came to CounterpointeSRE when a facility in Miami sought to minimize impact to operational cash flows and desired to reduce electrical load on emergency standby generator with extensive HVAC upgrades during a gut renovation.
- Resiliency through standby emergency generator
- Reduced operational costs through HVAC energy efficiency
- Long term financing at fixed rates smooths out cashflow impact
- $3.7MM capital improvement funding following acquisition and construction loans
C-PACE Financing in Florida References
F.A.Q.
C-PACE is public private partnership among private capital, government or state economic development agency to promote commercial property wind resistance and clean energy through use of the property taxes.
Since 2013, Counterpointe has provided this innovative financing as a respected leader in the foundation of the industry. Please contact us below for speaker requests or to discuss mechanism of the financing for your needs.
What are the financing terms?
Self-amortizing financing at fixed rates up to 35 years, term capped by life of equipment, with ability to defer start of repayment for years through capitalizing interest.
No credit impact, non-recourse with no financial covenants, intercreditor agreements, or personal guarantees.
Repayment cannot be accelerated with no due on sale clause
Competive interest rates that lower blended rate of developmer’s capital stack that vary by project and market conditions.
How much PACE financing can my property support?
Maximum net proceeds vary from 20-35% LTV (PACE lien to value) of property’s valuation once project is completed and property is producing income.
Many retrofit and gut rehab projects qualify for 100% financing, excepting FF&E. Please submit schedule of values or list of proposed measures with costs and projected savings for assistance in determining qualifying costs. Measure by measure cost benefit analysis available at no cost upon request and our underwriters are happy to work with professionals to maximize operational savings.
Removing acquisition costs, new construction typically qualifies for 25-30% LTC. Please submit schedule of values for eligibility screen and assistance.
How long is the process and what do I need to submit?
Timing varies with complexity of project and property with many financings closing 30-60 days once underwriting documents, appraisal, and other third party reports are received. Standard document requests include organizational documents for owning entity, historical or pro forma property financials, mortgage documents, rent roll, and construction documents.
Many owners elect to complete underwriting and then hold off closing for months until start of demolition or ground breaking. Closing may occur mid-construction or after completion for retroactive financing for years, with certain limitations. Please contact us for details and to discuss your project.
PACE Eligible Improvements
From roofing and building envelope to HVAC and lighting on the efficiency side to renewable energy, water conservation and resiliency to storm, flood and seismic events, PACE financing covers endless improvements to new and existing properties.
Retroactive PACE
PACE financing can be applied to completed projects to recapitalize energy efficiency, renewable and resiliency investments. Refinance is important in newer PACE markets where the legislation may follow an owner’s investment and is a strategic resource for owners.
PACE for Green Roofs
Using PACE financing for a Green roof can yield a cash flow positive improvement that adds value by increasing energy efficiency, reducing storm-water run-off and transforming unused space into a building amenity to be enjoyed by tenants.