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C-PACE Financing

Long-am, non-recourse, off-balance-sheet financing for energy/resilience upgrades.

Overview

Commercial Property Assessed Clean Energy (C-PACE) funds energy, water, seismic, and resilience improvements via a voluntary property tax assessment — 20–30 year amortization, fixed rate, non-recourse, transfers with the property. Can be used on new construction and retroactively (up to 3 years post-CO in many states). Sits senior to mortgage but doesn't accelerate on sale.

Best fit
Commercial developersValue-add sponsorsAdaptive-reuse projects
Estimated impact
Replace 15–25% of capital stack with cheap long-term debt

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