Commercial PACE (C-PACE) and IDEAL™ Financing are equity stack financing tools that pay for energy and water related conservation measures (ECMs) in a ground up or building improvement construction project. They are growing significantly and are embraced by much of the commercial real estate property owner community.

C-PACE/IDEAL™ is:

  • Long Term (Up to 20 Yrs. in MO; 22 in KS; 30 in AR, NE, OK)
  • Fixed, Competitive Rates
  • Non Recourse
  • Secured by Special Assessments on the Property that can be Passed Along to Tenants and Hotel Guests
  • Amortized Over the Term of the PACE/IDEAL™ Loan
  • Funded by Private, Institutional Capital

Effective Cost of C-PACE/IDEAL™ Capital is Below Market

Passthrough of the annual PACE or IDEAL™ assessment to tenants and hotel guests significantly reduces the cost of C-PACE/IDEAL™ capital:

  • Current Cost of 20 Year C-PACE/IDEAL™ Capital: 6.25% – 7.0% (no passthrough; compare with investor equity hurdle rates of 12% to 20%)
  • 25% Passthrough Effective Rate: Approximately 3.5%
  • 50% Passthrough Effective Rate:  0%
  • Insulation
  • Caulking, Weatherstripping and Air Sealing
  • Water Heating Systems
  • Daylighting Systems
  • Energy Recovery Systems
  • Other Renewable Energy Resources Such As Geothermal, Cogeneration and Trigeneration

OTHER C-PACE/IDEAL™ FEATURES

C-PACE and IDEAL™ Project types include:

  • Ground up construction
  • Redevelopment:
    -Renovations
    -Retrofits
    -Conversions
    -Rehabs
  • Owner Occupied Building Projects
  • Nonprofit-owned Building Projects

C-PACE or IDEAL™ can fund 100% of the Energy Efficiency and Water Conservation related improvements (hard and soft costs) of a project, up to a maximum of 20% to 30% of the property “Value at Completion”.

PACE and IDEAL™ loans will include capitalized interest through the construction period. The first PACE assessment is not due until the project is completed and during or after the stabilization period.

C-PACE or IDEAL™ funding from $500,000 to $20M+ for any single project.

C-PACE or IDEAL™ application to funding is relatively quick; 45 to 90 days in most cases.