Using Property Assessed Clean Energy (PACE) Financing: IMS Case Study
Property Assessed Clean Energy (“PACE”) is an emerging lending product that provides long-term, fixed-rate funds, up to 100% of cost, for projects that promote clean energy/renewable energy improvements. PACE can be used for both existing buildings and new developments and allows developers and owners to obtain low-cost, long-term financing for energy efficiency, water conservation, renewable energy projects, and more.
- PACE covers 100% of the hard and soft costs of an energy project so property owners don’t have to put any money down.
- PACE loans are repaid as tax assessments and can be passed on to tenants under most lease forms.
- PACE allows finance terms up to 20 years while standard commercial lending rarely exceeds 7-10 years.
- Upon a property sale, the PACE assessment seamlessly transfers to the new owner as part of the taxes, as well as the savings from the energy project.
- At nearly half the cost, PACE is a great alternative to Mezz Debt and Equity in a capital stack.
At this Closer Look event, Rafi Golberstein, President of PACE Loan Group, and Shannon Van Gemert, Director of Eagle Ridge Partners, will walk through how a $3.9 million PACE loan was used to finance renovations of the iconic International Market Square, allowing the owners to reduce their equity contribution and to lower utility costs.