P is for PACE

The A-Z of Property Management

P is for…

P is for PACE 100% Financing.  PACE (Property Assessed Clean Energy) is the single biggest improvement in commercial real estate I have seen in my 30+ year career.  It is a powerful tool that property owners can use to improve their real estate investment.

PACE provides property owners with Long-term, fixed-rate, non-recourse, non-esclatable, 100% financing for energy and water efficiency improvements, resiliency and on-site generation.

PACE Legislation has been adopted by 37 states including Texas.  Local municipalities opt in to participate in the State’s program, making PACE Financing to their property owners.  No Government money – all private lenders.  Lower cost alternative to 2nd lien/mezzanine financing or owners’ equity.

• Owner doesn’t borrow the money, the property borrows it. – preserves owner’s capital
• Owner doesn’t pay it back, the tenants pay it back.
• Tenants benefit because PACE generates more energy savings than it costs to repay the loan
• Projects benefit by doing multiple Energy Conservation Measure’s together
• Property is more comfortable with new HVAC, Lighting, Controls, Back up, etc.
• City benefits by having better quality infrastructure
• Grid benefits by reduced power demands
• Contractors benefit not having to wait until the owner’s CapEx budget can pay for the project
• Economy benefits from more jobs doing this work now.

“One of the Best New Ideas in the World” Harvard Business Review

“One of the Most Innovative Ideas” Scientific American