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