- Flexible Funding Without Upfront Costs: C-PACE allows property owners to finance energy-efficient upgrades without requiring significant upfront capital. This means they can initiate projects without tying up large amounts of their own funds.
- Fixed Rates and Long-Term Repayment: Repayment is typically spread over terms of up to 20-30 years at fixed rates, which can be significantly lower than other forms of financing like mezzanine or preferred equity.
- Transferable Loan: The loan obligation can be transferred to new property owners if the property is sold, ensuring that repayment remains with the benefiting property.
- Pre-payable Loan with No Penalties: Unlike traditional loans, C-PACE financing usually does not incur additional fees or penalties for early repayment, providing flexibility for property owners.
- Non-Recourse and Non-Accelerating: The loan is secured solely by the property, and in the event of default, only delinquent payments are collected, protecting borrowers from personal liability.
- Increased Property Value: Enhancements to energy efficiency and sustainability often increase property value and appeal to potential tenants and buyers.
- Energy and Cost Savings: C-PACE projects typically require that energy savings from the upgrades outweigh the cost of financing, ensuring that projects are financially beneficial over time.
- Compliance with Sustainability Goals: C-PACE supports the transition to higher efficiency building standards, aligning with increasing environmental regulations and sustainability goals.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-benefits-of-using-c-pace-for-commercial-property-owners/
