How C-PACE Partners with Banks to Fill a Growing Financing Need

What was once pigeonholed as a niche financing tool for ESG improvements has grown into a multibillion-dollar financing tool that’s showing up in unexpected places, like multifamily recapitalizations post-occupancy, office-to-apartment conversions, and hospitality repositionings.

C-PACE (Commercial Property Assessed Clean Energy) is a program to help property owners finance improvements and new construction with an eye toward energy savings and resiliency, but the definition of sustainability has expanded in the last 10 years, paving the way for C-PACE to expand as well. Generally, C-PACE can finance up to 30% LTC, partnering with banks or other lenders to complete the capital stack.

PACE Loan Group (PLG) was founded in 2017 and is one of the original direct C-PACE lenders. “As one of the top program lenders in the country, we have seen C-PACE grow from a niche product to wide-scale acceptance, particularly over the past two years. From small firms to large institutional players, C-PACE has proven to be a valuable tool for numerous needs throughout the real estate cycle,” said Rafi Golberstein, CEO and founder, PACE Loan Group.

Golberstein highlighted how C-PACE financing meets a need for commercial property owners to partner with other lenders, like banks or debt funds.

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