PACE Financing Improves Commercial Property Investments

The financing is repaid over time through the property tax bill, which is consistent with the cash flow generated by the upgrades. PACE financing provides property owners with a potent instrument to enhance their return on investment by financing energy-efficient improvements without requiring an initial payment.

One of the primary methods by which PACE enhances return on investment is by decreasing operating expenses. Asset value can be directly enhanced by reducing energy and maintenance costs, which can result in a substantial increase in net operating income (NOI). This also enhances the competitiveness of properties in markets that prioritize environmental performance and energy efficiency.

PACE financing is situated at the bottom of the capital stack, which facilitates the acquisition of senior debt or equity while simultaneously ensuring cost control. This is an intelligent approach to capitalize on long-term, fixed-rate financing without compromising the financial structure of the project or diluting ownership.

Property investors throughout the United States can enhance energy efficiency, mitigate emissions, and generate long-term value by utilizing the growing availability of C-PACE financing. CleanFund provides access to flexible capital that is consistent with sustainable building strategies and financial outcomes.