Financing Structure and Attributes

What is C-PACE?
Commercial property Assessed Clean Energy (C-PACE) is an innovative finance tool that enables commercial property owners to obtain up to 100% long term, fixed-rate financing for energy efficiency, renewable energy, resiliency, water use and electric vehicle charging building improvements to new and existing buildings. The term of a C-PACE financing may be up to 20 - 30 years and can result in cost savings that exceed the amount of the C-PACE financing. PACE lenders finance 100% of the hard and soft costs of eligible projects through fixed rate, fully amortizing financing for up to 30 years. PACE assesments are secured by a voluntary assessment on the property, which automatically transfers upon the sale of the property. Property owners may also elect to prepay a PACE assessment. PACE is available for residential and commercial properties, depending on the state's enabling legislation. Most types of commercial properties are eligible for PACE, including office, hospitality, retail, mixed use, healthcare, industrial and multifamily buildings with more than four units, depending on the state and PACE program. Many programs have enabled PACE for new construction projects and to refinance installed improvements within a 1-3 year lookback period. PACE is enabled by state legislation and at the local level by cities and counties. To date, 38 states and Washington, D.C. have adopted commercial PACE enabling legislation, and 30 states and D.C. have active programs. Residential PACE is enabled in California, Florida, and Missouri. Over 350,000 building owners have chosen to use PACE to invest $15 + billion in improvements to their homes and properties. C-PACE financing is secured by an assessment lien and is repaid as a ine item on the property tax bill. C-PACE assessments "run with the land," therefore C-PACE is non-recourse to the borrower, and does not accelerate or become due upon the sale of the property, allowing property owners to invest in longer-term payback clean energy improvements that can generate positive cash flow and environmental benefits.
ELIGIBLE IMPROVEMENTS
C-PACE financing covers a vast range of potential clean energy and sustainability improvements, below are some examples:
  • Renewable Energy
  • Energy Efficiency
  • Water Conservation
  • Electric Vehicle Charging
  • Resiliency
Property Types
  • Office
  • Retail
  • Multifamily
  • Industrial
  • Hospitality
  • Special Use
FINANCING PARAMETERS
  • Pace Financing Amounts: Minimum $50,000 up to $900,000,000
  • Term: 5 - 30 years, depending on the expected useful life of the eligible improvements.
  • Amortization: Fully amortized over the term of the PACE financing.
  • Interest Rate: Fixed rate for the term of the loan. Market rates priced over a like-term treasury index.
  • PACE LTC: Up to 35% of property value
  • Eligible Improvements: See eligible improvements section above.
  • Property Types: See above.
  • Recourse: No personal guarantees, repayment is, non-recourse
  • Prepayment: No lockout. Prepayable at any time, subject to step-down prepayment premium.
  • Lender Consent: Prior to closing, the mortgage holder(s) of record provides acknowledgement and consent to the C-PACE financing.
Loan Terms
  • Fixed rate, up to 30 year term
  • Non-Recourse
  • No financial or operational covenants
  • Repaid via the property tax bill
  • Obligation attaches to the property
  • C-PACE LTC/LTV up to 30%
  • Up to 15 years interest only
  • Two years of capitalized interest
  • Pre-payable in part or in full at any time
  • Principal cannot accelerate
How Our Financing is Utilized
  • Recapitalize Projects
  • New construction and redevelopment
  • Conversion Capital / Asset repositioning
  • Resiliency and Renewable Energy Projects
  • Routine CapEx
  • Tenant Improvements
DRIVING ENVIRONMENTALISM AND COMMUNITY ENHANCEMENT ALONGSIDE RETURNS
OUR GOALS:
  • Clean Energy Implementation and Building System Efficiency Upgrades: Graco Commercial Capital is focused on reducing the portfolio's energy consumption, water usage, and waste disposal.
  • Renewable Energy Implementation: With the goal of reducing its environmental impact, Graco Commercial Capital aims to actively increase its solar energy portfolio financing.
  • Eco-conscious Site Improvements: Stormwater mangement upgrades, forest / wetland protections, and soil remediation.
  • Sustainable and Resilient Operations: Graco Commecial Capital aims to promote and improve sustainable operations. Such as, eco-friendly de-icing, heated driveways and native drought resistant plantings.
  • GHG Reduction Strategies: Graco Commercial Capital strives to promote electric vehicle charging stations, bike paths, green spaces, ride share facilities, and public transit options within development projects.
  • Sustainable Development: Develop / construct properties to the highest environmental standard set by local authorities.