C-PACE in action

C-PACE (Commercial Property-Assessed Clean Energy) is low-cost, long-term financing that is repaid as a property tax assessment for a specified period (up to 30 years at around 8% interest in the current market). The key benefit to PACE is that it allows commercial property owners to invest in clean energy, and to earn an immediate positive cash flow. PACE often fills the gap between what the mortgage holder and other equity can fund.

PACE has been wildly successful in Minnesota helping to deliver energy improvements to industrial buildings, commercial buildings, nonprofits, multi-family housing units and senior care facilities, as well as, farming operations. Recently, the Four Seasons Hotel in downtown Minneapolis utilized PACE financing to close a $20 million gap that helped complete the project. This kind of high-profile use case is critical, Bali notes, as most people are completely unaware of what PACE is and does. He says PACE Loan Group is on an information campaign so more owners and builders can take advantage of the program.