Why Use C-PACE?

C-PACE works well with various forms of financing including Traditional Bank Mortgage Loans, 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.

Typically, Property Owners and Developers use C-PACE financing to replace equity in their capital stack or use C-PACE financing for NOI enhancement which increases the value of the property. In all cases, the C-PACE project allows the property owner to tout the environmental / sustainability benefits to their project.

RAHILL C-PACE

  • Typical Financing Term: UP TO 20 YEARS*
  • Cash Flow Benefit: IMMEDIATE***
  • Underwriting Process:  EASY
  • Ability for Off-Balance Sheet Financing:  YES
  • Business Credit Review Required:  NO
  • Annual Property Tax Payments rather than Monthly Interest Payments: YES
  • Balloon Payment: NO
  • Financing Can Stay with Property Upon Sale: YES
  • Pass Through Tax Payments to Tenants: YES
  • Avoid Borrower Guarantees: YES
  • Avoid Financial Covenants: YES
  • Avoid Interest Rate Risk: YES
  • Avoid Quarterly Bank Reporting: YES
  • Down Payment is Required:  Nominal deposit which is credited at closing

Traditional Bank Mortgage Loan

  • Typical Financing Term: 5-10 YEARS**
  • Cash Flow Benefit: DELAYED
  • Underwriting Process: DIFFICULT
  • Ability for Off-Balance Sheet Financing: NO
  • Business Credit Review Required: YES
  • Annual Property Tax Payments rather than Monthly Interest Payments: NO
  • Balloon Payment: YES
  • Financing Can Stay with Property Upon Sale: NO
  • Pass Through Tax Payments to Tenants: NO
  • Avoid Borrower Guarantees: NO
  • Avoid Financial Covenants: NO
  • Avoid Interest Rate Risk: NO
  • Avoid Quarterly Bank Reporting: NO
  • Down Payment is Required: YES

* In the State of California, Financing Term permitted up to 30 years.
** Typically 25-30 yr amortization, including Balloon Payment upon maturity.
*** Ability to defer first C-PACE tax assessment payment up to 2 years after closing.