Financing Structure and Attributes

What is C-PACE?
Commercial property Assessed Clean Energy (C-PACE) is an innovative finance tool that enables commercial property owners to obtain up to 100% long term, fixed-rate financing for energy efficiency, renewable energy, resiliency, water use and electric vehicle charging building improvements. The term of a C-PACE financing may be up to 20 - 30 years and can result in cost savings that exceed the amount of the C-PACE financing. C-PACE financing is secured by an assessment lien and is repaid as a ine item on the property tax bill. C-PACE assessments "run with the land," therefore C-PACE is non-recourse to the borrower, and does not accelerate or become due upon the sale of the property, allowing property owners to invest in longer-term payback clean energy improvements that can generate positive cash flow and environmental benefits.
ELIGIBLE IMPROVEMENTS
C-PACE financing covers a vast range of potential clean energy and sustainability improvements, below are some examples:
  • Renewable Energy
  • Energy Efficiency
  • Water Conservation
  • Electric Vehicle Charging
  • Resiliency
Property Types
  • Office
  • Retail
  • Multifamily
  • Industrial
  • Hospitality
  • Special Use
FINANCING PARAMETERS
  • Pace Financing Amounts: Minimum $50,000 up to $900,000,000
  • Term: 5 - 30 years, depending on the expected useful life of the eligible improvements.
  • Amortization: Fully amortized over the term of the PACE financing.
  • Interest Rate: Fixed rate for the term of the loan. Market rates priced over a like-term treasury index.
  • PACE LTV: Up to 35% of property value
  • Eligible Improvements: See eligible improvements section above.
  • Property Types: See above.
  • Recourse: No personal guarantees, repayment is, non-recourse
  • Prepayment: No lockout. Prepayable at any time, subject to step-down prepayment premium.
  • Lender Consent: Prior to closing, the mortgage holder(s) of record provides acknowledgement and consent to the C-PACE financing.
Loan Terms
  • Fixed rate, up to 30 year term
  • Non-Recourse
  • No financial or operational covenants
  • Repaid via the property tax bill
  • Obligation attaches to the property
  • C-PACE LTC/LTV up to 30%
  • Up to 15 years interest only
  • Two years of capitalized interest
  • Pre-payable in part or in full at any time
  • Principal cannot accelerate
How Our Financing is Utilized
  • Recapitalize Projects
  • New construction and redevelopment
  • Conversion Capital / Asset repositioning
  • Resiliency and Renewable Energy Projects
  • Routine CapEx
  • Tenant Improvements
DRIVING ENVIRONMENTALISM AND COMMUNITY ENHANCEMENT ALONGSIDE RETURNS
OUR GOALS:
  • Clean Energy Implementation and Building System Efficiency Upgrades: Graco Commercial Capital is focused on reducing the portfolio's energy consumption, water usage, and waste disposal.
  • Renewable Energy Implementation: With the goal of reducing its environmental impact, Graco Commercial Capital aims to actively increase its solar energy portfolio financing.
  • Eco-conscious Site Improvements: Stormwater mangement upgrades, forest / wetland protections, and soil remediation.
  • Sustainable and Resilient Operations: Graco Commecial Capital aims to promote and improve sustainable operations. Such as, eco-friendly de-icing, heated driveways and native drought resistant plantings.
  • GHG Reduction Strategies: Graco Commercial Capital strives to promote electric vehicle charging stations, bike paths, green spaces, ride share facilities, and public transit options within development projects.
  • Sustainavle Development: Develop / construct properties to the highest environmental standard set by local authorities.