Pace Equity Program
Property Assessed Clean Energy (PACE) is a legislated public/private partnership which creates a new financing option for capital stack. A construction budget can use PACE’s private capital funding for costs which impact energy & water spend, renewable improvements or seismic strengthening. The repayment of PACE’s capital is made through a long-term special tax assessment on the property.
Reasons why large businesses use PACE:
- Boosts project IRR.
- Replaces Higher Cost Mezzanine and Equity Capital
- Allows for a larger ownership percentage to be retained internally.
- Offsets high equity requirements with low-cost financing.
- Reduces high-cost debt funds to lower WACC.
- Reduces personal risk with non-recourse financing.
- Increases net operating income and property value.
