C-PACE financing for commercial properties
Finance eligible energy-efficiency, renewable-energy and water-conservation improvements with White Oak's C-PACE offering. It can cover up to 100% of eligible project costs, with fixed payments spread over the improvements' useful life.
Discuss your project
Program overview
Financing tied to your property improvements
Commercial Property Assessed Clean Energy (C-PACE) provides financing for eligible improvements to commercial properties and apartment buildings with five or more units. You repay the financing through a voluntary contractual assessment that appears as an additional line item on your property-tax statement. The assessment is tied to the property.
White Oak works directly with local governments to identify projects and set financing terms within state law and local program guidelines. Once you and White Oak agree on terms, the city or county tax authority creates the C-PACE assessment on the tax roll.
Availability depends on state enabling legislation and local participation. Where a city or county has yet to opt into a program, White Oak can help facilitate that process as part of exploring C-PACE for your project.
Financing terms
Project costs and financing terms
White Oak can finance up to 100% of eligible hard and soft costs, bringing the improvements and related project expenses into one financing arrangement. That coverage applies to eligible improvement costs; it is separate from the property's value or the full budget for a development.
| Financing feature | Representative terms |
|---|---|
| Project size | $3 million to $100 million and up, subject to a 35% loan-to-value cap in certain states |
| Eligible costs | Hard and soft costs, including professional fees, engineering studies, appraisals and energy-savings analyses |
| Other financeable expenses | Capitalized interest, reserves, fees and transaction expenses |
| Interest rate | Fixed rates |
| Repayment term | Fixed payments spread over the improvement's useful life, from 10 to 30 years |
The repayment term connects the payment schedule to the useful life of the work you are financing. If payment timing is a concern, C-PACE proceeds can also be used to pre-fund interest and delay payments for up to two years. The interest is financed through the proceeds during that period.
For the wider property project, White Oak Real Estate Capital (WOREC) provides commercial real estate financing for acquisition, construction, renovation and lease-up. That separate financing discussion connects the project budget with the construction or renovation timetable, leasing and planned repayment.
Eligible improvements
Improvements C-PACE can finance
C-PACE can support a range of energy-efficiency, renewable-energy and water-conservation work. The examples below can help you identify which parts of your property improvement project to discuss with White Oak. Eligible work depends on the applicable state and local program.
- Manufacturing equipment expected to generate cost savings
- Heating, ventilation and air conditioning systems, including related parts and accessories
- Efficient lighting systems, including LED, compact fluorescent and other lighting
- Upgraded windows and window coatings
- Improvements to doors, walls and other exterior materials
- Energy-efficient roofing materials
- Water boilers and heating systems
- Solar, wind and geothermal power systems
- Electric vehicle charging stations
Manufacturing equipment is considered within the commercial property's improvement project and applicable C-PACE program. For equipment financing and leasing, how long you expect to use the equipment and the value it may retain at the end of a lease help you weigh the financing term and payments.
- Low-flow appliances and fixtures
- Irrigation solutions and related systems and controls
- Rainwater collection
- Wastewater recovery or treatment applications
In California and Oregon, seismic improvements can include:
- Foundation improvements
- Shear walls
- Brace and support frames
- Additional bracing for fixtures and emergency support systems
Other states permit improvements relevant to local conditions. In Florida, for example, C-PACE can finance eligible storm-proofing improvements.
Project timing
Financing at different project stages
You can consider C-PACE for eligible improvements within new construction or redevelopment, as well as for work that is already complete.
If you used other funds to pay for improvements, a state's lookback period may allow you to refinance that work through C-PACE for up to three years after completion. The available period depends on the state, so your property's location and the project's completion date are useful starting points for that discussion.
Existing financing
Existing mortgages and assessment payments
C-PACE can usually be added to your property's capital structure without modifying existing debt. If the property has a mortgage, the mortgage holder must approve the C-PACE financing. That consent is part of considering how the assessment will sit alongside your existing financing.
With White Oak's C-PACE offering, you have no financial or other maintenance covenants to manage and almost no reporting requirements. No personal, parent-company or corporate guarantees are required. Scheduled assessment payments remain due.
If an assessment payment is missed, the remaining scheduled installments do not become immediately payable. This is known as non-acceleration. The overdue assessment still needs to be paid: counties generally follow their property-tax collection procedures for past-due C-PACE assessments.
Ownership changes
Selling the property or repaying early
Because the C-PACE assessment stays with the property, a buyer may assume the remaining payments when you sell, subject to buyer agreement and applicable program and transaction conditions. If the buyer does not agree to a transfer, you may need to pay off the outstanding assessment. This makes the planned ownership period relevant when considering a longer repayment term.
Early repayment is also usually possible, although the rules vary by area. If you expect to sell or refinance, discuss the applicable transfer and repayment terms, including any fees, as part of choosing the financing structure.
Get in touch
Discuss your property improvement project
Whether you're planning work or exploring C-PACE for completed improvements, tell us about your property's location, the scope and stage of the project, and any existing mortgage. These details provide a starting point for discussing the financing and local program requirements with White Oak.
Contact Jeff directly or apply online.