Do more with C-PACE

C-PACE FOR DEVELOPERS

What if, when you were developing your next property, you could:

  • Finance up to 20 percent of your construction costs with affordable, fixed-rate, non-recourse financing?
  • Reduce your owner-equity contribution, mezzanine financing or other forms of high-cost capital, and lower your weighted average cost of capital?
  • Fill gaps in your financing plan?
  • Reduce your building’s energy use and cost?
  • Build a more valuable and competitive building?

It’s possible, thanks to C-PACE.

What is C-PACE for new construction?

C-PACE is an innovative, new financing mechanism for commercial real estate developers. It enables you to access affordable, long-term, non-recourse financing for the installation of energy efficiency and renewable energy measures.

Financing is provided by private capital providers in an open market. This means you can choose the most competitive rates and terms. The C-PACE financing is repaid through a voluntary benefit assessment that is recorded on the property, similar to a sewer assessment. Repayment terms can extend up to 25 years—and you can transfer the assessment to a new owner if you sell the property.

Today, there’s no longer any reason to “value engineer” energy efficiency and renewable energy measures out of a project! Thanks to C-PACE, you can build a sustainable, high-performing building right from the start, while reducing your weighted average cost of capital.

How Does It Work?

You start by either engaging with a C-PACE project developer to help you through the process, or by submitting a project application, on which you’ll be asked to confirm that your proposed building will be designed to meet or exceed the City’s current energy code IECC 2018/ASHRAE 90.1-2016. You’ll also need to provide construction costs by trade component and the as-designed building energy model for the C-PACE program administrator to determine the total eligible construction cost (TECC), and the eligible amount of C-PACE financing your project (up to 20 percent of TECC).

Next, the C-PACE program administrator will coordinate with you and your engineering/ construction/energy modeling firm, where necessary, to ensure that all parties understand the C-PACE program requirements, and that the project is consistent with potential utility incentives.

Learn More

Contact us or visit our FAQs page to learn more about C-PACE for new construction.

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