PACE financing provides deeply subordinated debt for commercial real estate projects (new construction and renovation). PACE funding is repaid through a special assessment on the property tax bill and is secured by property tax payments – not a mortgage. In this way, the PACE loans are deeply subordinated to other forms of debt and are often available at lower interest rates than traditional bank debt. PACE loans can finance anything related to energy efficiency such as windows, doors, insulation and shell, HVAC and even solar and efficient lighting. These costs typically range from 20% to 35% of new construction budgets.

Many projects that qualify for PACE financing often qualify for other sources of subsidized financing, allowing developers and project sponsors to combine incentives. These additional subsidies include tax credits and grants, along with government debt. These incentives can be sourced from federal, state and local governments and are best negotiated early in the funding process. Contact Us to learn more.