C-PACE

C-PACE

Financing The Future Of Commercial Energy Efficiency And Property Safety

UTILIZE CAPITAL MORE EFFICIENTLY

LOWER COST OF CAPITAL THAN EQUITY OR MEZZANINE DEBT

WHY C-PACE ?

CHALLENGE #1

Most commercial real estate accounting uses separate Capital and Operating Budgets

  • Savings from reducing operating costs not applied towards improvements, but towards other capital investments
  • Cost of improvement over estimated useful life not considered in budgets
  • Net annual cash flow is a critical issue to owners

The New Era Capital Solution:

  • 100% financing: no capital expenditure or upfront costs to owners for the improvement
  • Long amortization schedule with fixed rates keeps savings to investment ratio greater than one.

CHALLENGE #2

Commercial ReaL Estate Owners want to increase return on investment (ROI) for green building improvements

  • Split Incentives for Owner and Tenants
  • Owner pays cost for improvement and often only the tenant gets benefit through utility savings
  • High turnover rates with many buildings sold before savings are realized

The New Era Capital Solution:

  • No upfront costs to owners
  • Pass-through costs to tenants as permitted by lease as assessment-repaid through property tax bill
  • Some rent control laws permit pass-through to tenants
  • Assessment stays on property if sold

EXPENSES ELIGIBLE FOR FINANCING

Eligible costs generally include all installation costs of eligible products, all financing costs, and all related work necessary for the installation. Installation costs include, but are not limited to:

  • Energy, water and similar audits
  • Designs, drawings, surveys
  • Engineering services
  • Building permit and inspection fees
  • On-site inspections
  • Technical reviews and reports
  • Materials and all related work required in connection with the installation of the eligible products

Eligible expenses may also include the cost of pre-paid warranties and service contracts for repairs and maintenance.

NEW ERA CAPITAL C-PACE Financing Parameters

  • Project Size: $1,OOO,OOO – $50,000,000
  • DSCR Requirement: 1.15x-1.20x On Underwritten Stabilized Net Cash Flow For Properties. Appraisal And Financials Required
  • Terms: 5 to 30 Years, Fixed Rate, Fully Amortizing, With No Guarantees Or Covenants Required
  • Eligible Property Types: Office, Retail, Multifamily, Light Industrial/Warehouse, Hospitality, Mixed-Use
  • Eligible Improvements: Energy Efficiency, Renewable Energy, Water Conservation, Seismic Retrofits, Risk Mitigation, and Some Other Improvements
  • Occupancy Type: Stabilized, Transitional. Or Ground Up Construction. Previously Completed Construction May Be Eligible
  • Eligible States: Nationwide And Continually Growing. Contact Us To See If Your In An Active C-PACE Jurisdiction
  • Non-Recourse With No Technical Default Provisions
  • Interest Rates: Varies By Jurisdiction, Term, Project Size, And Property Type. Please contact for lending matrix and current pricing