Why Use C-PACE?

Property Owners and Developers use C-PACE financing to replace equity or mezzanine debt in their capital stack. In addition to offering a significantly lower cost of capital, C-PACE offers compelling benefits, including the ability to pass through the cost of the payments to tenants, no operating covenants, and off-balance sheet financing.

C-PACE works well with various forms of financing including traditional bank mortgage loans, federal or state historic tax credits, new markets tax credits and other tax abatement financing. RAHILL Capital is adept at working with projects that have a complex capital stack.

MEZZANINE DEBT C-PACE FINANCING
Financing term 3-5 years 20-30 years
Typical interest rate 8-12% 5-7%
Payment schedule Monthly Annual or semi-annual
Balloon payment Yes- interest only No – fully amortizing
Security interest Borrower’s interest in the entity that owns the property Land/property
Ability to transfer obligation upon sale No Yes
Ability to pass through payments to NNN tenants or hotel guests No Yes
Ability to delay first payment No Yes – up to 2 years post funding
Ability for off-balance sheet financing No Yes
Entire principal balance accelerates upon default Yes No
Includes financial/operating covenants Yes No
Requires a borrower’s guarantee Yes No