What is C-PACE?
C-PACE is a public-private partnership allowing private capital to finance measures that reduce a commercial building’s energy consumption.
- Generally, any improvements that reduce a building’s energy consumption are C-PACE eligible. Such improvements generally fall into several categories:
- Energy Efficiency
- Water Conservation
- Resiliency (improvements to protect against natural disasters)
- C-PACE eligible improvements can be financed either (1) when the improvements are installed or (2) as a reimbursement two to three years after installation is complete in most C-PACE programs.
- C-PACE is active in 29 states plus the District of Columbia. This number is expected to continue increasing through 2023 and beyond.
C-PACE at BSP
BSP’s C-PACE program is run out of our commercial real estate group.
- BSP can fund C-PACE loans in a variety of situations:
- New construction
- Major rehabilitation of existing buildings
- Limited retrofit projects
- Construction loan refinances
- Completed project recapitalizations
- BSP seamlessly combines C-PACE with BSP-originated senior loans to complete a borrower’s entire capital stack in a single transaction with BSP as the only lender.
- Property owners and developers may access C-PACE to finance eligible improvements for upgrades to existing buildings and new construction projects.
- As a special assessment on title, C-PACE is typically repaid as a line item on the property tax bill over 20 to 30 years. The term is tied to the weighted average useful life of the improvements financed by C-PACE.
We are excited to help mitigate climate change and reduce carbon emissions at the same time we fund new loans.
Franklin BSP Green Capital
1345 Avenue of the Americas, Suite 32A
New York, NY 10105
For investor relations and general inquiries, please email [email protected]