Why Do Commercial Developers and Property Owners Use PACE or IDEAL™?  What Pain Can it Solve?

C-PACE or IDEAL™ is a financing solution that can solve some real pain issues for developers and property owners.

C-PACE/IDEAL™ is used to:

  • Reduce equity required for a project
  • Close a financing gap to get a project off the ground (C-PACE and IDEAL™ can be combined with other equity stack financing tools like Historic and New Market Tax Credits, CIDs, TIFs, TDDs, Brownfield Tax Credits)
  • Diversify equity into more projects
  • Increase the ROI of a project
  • Withdraw equity from a project that’s already completed (C-PACE or IDEAL™ financing can be uniquely used to withdraw cash from projects completed within the past 36 months – i.e. a look back provision)
  • Upgrade and modernize buildings that are in disrepair and expensive to operate
  • Make buildings more marketable and competitive for leasing, re-leasing and sale
  • Solve the split incentive for landlords who make improvements to buildings that benefit the tenants but can’t be passed along to the tenants
  • Replace cash for owner occupied building projects; cash can be invested in the business or elsewhere
  • Pay for long term payback measures (e.g. roofs, windows, insulation, HVAC) over their useful life
  • Pay for energy-related upgrades for a nonprofit owned building project capital campaign; ideally the energy cost savings will exceed the annual PACE or IDEAL™ assessment cost and the project will be cashflow positive from its inception

  • Withdraw equity from a project that’s already completed (C-PACE financing can be uniquely used to withdraw cash from projects completed within the past 24 months – i.e. a look back provision)
  • Upgrade and modernize buildings that are in disrepair and expensive to operate
  • Make buildings more marketable and competitive for leasing, re-leasing and sale
  • Solve the split incentive for landlords who make improvements to buildings that benefit the tenants but can’t be passed along to the tenants
  • Replace cash for owner occupied building projects; cash can be invested in the business or elsewhere
  • Pay for long term payback measures (e.g. roofs, windows, insulation, HVAC) over their useful life
  • Pay for energy-related upgrades for a nonprofit owned building project capital campaign; ideally the energy cost savings will exceed the annual PACE assessment cost and the project will be cash flow positive from its inception

Where is PACE available?