C-PACE GREEN LENDING
Benton Capital offers a Commercial Property Assessed Clean Energy (C-PACE) loan program for fixed rate mortgage loans up to $25,000,000 for the construction and renovation of commercial properties with energy efficiency and renewal energy improvements through ReBar Captial.
Improvements financed under a C-PACE loan include:
C-PACE programs are clean energy initiatives adopted by state and local governments to encourage investment in energy conservation projects. C-PACE addresses two major roadblocks limiting clean energy investment by commercial property owners: the high cost of capital, and a hesitancy to make long-term investments that are only recoverable over a long holding period.
C-PACE programs serve a public purpose by encouraging energy efficiency and renewable energy investment through attractive financing. Additional benefits to the municipality include:
Improved energy conservation, and
California and Connecticut have the most active C-PACE programs, and other states like Florida, Colorado, Rhode Island, New Hampshire, Maryland, Ohio, and Wisconsin have active programs, too. Many more programs are coming on line.
Non-Recourse, 100% financing for hard and soft project costs.
At 6% to 6.75%, lower cost of capital than Mezzanine debt (10-14%) or equity (18-25%), which it replaces.
As a tax assessment, property owners to pass financing costs to tenants under most lease types.
May reduce replacement reserves required under the senior mortgage.
Transfer with the property when sold.