C-PACE Financing
Commercial Property Assessed Clean Energy Program (C-PACE)
Overview
C-PACE financing provides long-term, fixed-rate capital with no upfront costs for energy efficiency, renewable energy, water conservation, and resiliency improvements in commercial and mixed-use development. C-PACE finances up to 100% of qualifying improvements and is repaid through a property tax assessment. C-PACE can be used in new construction, major rehabilitation projects, as well as in projects completed within a 3-year look back period.
Monge Capital represents Enhanced Capital in originating C-PACE loan opportunities.
Key Advantages
- Up to 35% LTV
- Long-term amortization (up to 30 years)
- Fixed-rate financing
- Non-recourse to sponsor
- Transferable upon sale; non-accelerating
- Off-balance sheet treatment
- Retroactive financing for up to 3 prior years
Effective For
- Ground-up commercial and mixed-use developments
- Adaptive reuse and MEP intensive projects
- Projects with constrained equity availability
- Replacing expensive equity/debt
- Developments incorporating tax credit equity
- Aspire, CAFE, HTC, LIHTC, NMTC
- Projects seeking long-term fixed-rate capital
Qualifying Improvements
Building Envelope
Windows, insulation, foundation, glazing & more
Renewable Energy
Solar, wind & geothermal energy
Automated Controls
CHP systems, variable speed motors, pumps & fans
Roof Replacement
Full overlays, upgrades for solar installation
Seismic Retrofit
Existing structure & foundation modifications
High Efficiency Lighting
LED & low wattage lights & install costs
HVAC Upgrades
Energy efficient upgrades and retrofitting
Water Conservation
Low-flow fixtures, installation costs, reclamation systems
Boilers & Chillers
Hot water, replace end-of-life equipment & heating
Opportunity
If you are underwriting a commercial or mixed-use development, we can quickly assess whether C-PACE can:
Without C-PACE
- $6mm Senior Debt6.25%
- $2mm Mezzanine Loan15%
- $2mm Equity20%
With C-PACE
- $2mm PACE5.5%
- $6mm Senior Debt6.25%
- $2mm Equity20%
C-PACE can be layered alongside tax credit equity and bridge financing to reduce sponsor carry and optimize overall capital structure. By replacing shorter-term mezzanine or preferred equity with long-term C-PACE capital, projects achieve stronger coverage and improved investor returns.
*WACC: Weighted Average Cost of Capital