C-PACE Financing for Commercial Real Estate

Smarter Capital for Energy-Efficient and Resilient Properties

Modern commercial office building suitable for C-PACE upgrades

What Is C-PACE?

C-PACE (Commercial Property Assessed Clean Energy) is a unique form of commercial real estate financing that enables building owners to fund qualified improvements and repay the cost as a special assessment on their property tax bill.

Unlike conventional loans:

  • C-PACE is secured to the property, not the owner
  • It is typically non-recourse
  • It is transferable if the property is sold
  • Repayment terms can stretch 10 to 30 years, often matching the useful life of the upgrades

This structure provides capital for critical improvements without negatively impacting debt ratios or requiring upfront out-of-pocket investment.


Typical mix of C-PACE eligible project types
C-PACE projects often combine mechanical, envelope, solar/EV, and resiliency work.

Why Choose C-PACE Financing?

  • Preserve working capital – finance most improvements with no upfront payment
  • Long-term, stable terms – match payments to asset life
  • Improve cash flow – energy savings often exceed annual repayments
  • Off-balance sheet in many cases – ideal for asset-light strategies
  • Increases building value – and helps meet ESG and code requirements
  • Non-recourse and transferable – financing stays with the property

Most hard and soft costs such as installation, permits, engineering, and energy audits can be included.




How C-PACE Financing Works

  1. Initial Consultation – We help you determine if your project qualifies and estimate how much can be financed through your local C-PACE program.
  2. Energy Review & Program Approval – A qualified energy audit or project model confirms eligibility. We coordinate all documentation and submission with the program administrator.
  3. Funding Arranged – We secure capital from top-tier C-PACE lenders. Project funds typically cover most or all qualifying costs, freeing up your capital for other uses.
  4. Repayment via Property Tax Bill – You repay the financing over 10–30 years as part of your annual property taxes, at a fixed interest rate. If you sell, the obligation stays with the property.

Why Choose C-PACE Financing?

  • Preserve working capital – finance most improvements with no upfront payment
  • Long-term, stable terms – match payments to asset life
  • Improve cash flow – energy savings often exceed annual repayments
  • Off-balance sheet in many cases – ideal for asset-light strategies
  • Increases building value – and helps meet ESG and code requirements
  • Non-recourse and transferable – financing stays with the property

Where Is C-PACE Available?

C-PACE financing is currently available in more than 30 U.S. states and Washington, D.C., with additional jurisdictions coming online each year. Contact us to find out if your property is eligible.


Why Work with Select Commercial Funding?

C-PACE is powerful — but it’s complex. That’s where we come in.

C-PACE financing advisory team working with property owners
Our team structures C-PACE to fit alongside your senior debt.
  • C-PACE Expertise – We understand the nuances of each state’s program, from underwriting to structuring to local approvals.
  • Access to Top National Lenders – We match your project with the right C-PACE lender from our national network to ensure optimal terms and execution.
  • Capital Stack Strategy – Already have a senior mortgage or other financing? We know how to integrate C-PACE into your capital structure legally and efficiently.
  • Project Management Support – From your first question to the final disbursement, we guide you and your team every step of the way.
  • Trust, Experience, Results – With decades in commercial real estate lending, Select Commercial Funding brings you experience you can count on and relationships that get deals closed.

When C-PACE Makes Sense: High-Impact Use Cases

Major Hotel Repositioning – Energy Upgrades + Solar

C-PACE funded portion of hotel repositioning project

Property: 200-key branded hotel in Southern California
Project Scope: HVAC overhaul, LED lighting, water conservation, roof replacement, and rooftop solar array
Total Project Cost: $16.5M
C-PACE Financing: $4.2M
Challenge: Sponsor sought to enhance ESG profile and reduce operating costs prior to refinance
Result:
- Annual utility savings exceeded $300K
- Lower operating expenses improved DSCR for takeout loan
- Achieved green building certification, increasing asset value and appeal to ESG-conscious investors

Class B Office to Mixed-Use Conversion

Property: 12-story office building in downtown Chicago
Project: Adaptive reuse into mixed-use residential + coworking space with envelope upgrades, new HVAC, low-flow fixtures, and solar
Total Cost: $31M
C-PACE Financing: $7.5M
Challenge: Senior lender required energy improvements for construction approval but wouldn’t finance them
Result:
- C-PACE filled critical gap without diluting equity
- Blended capital stack enhanced IRR
- New NOI projections outperformed underwritten expectations due to energy savings

Suburban Retail Portfolio Renovation

Property: 3-property retail portfolio in Texas (total 180,000 SF)
Project: Roofs, HVAC, insulation, EV charging, and solar across all properties
C-PACE Financing: $5.6M across the portfolio
Challenge: Institutional owner wanted to modernize aging assets without using operating capital
Result:
- Enhanced tenant retention and increased NNN recoveries
- Property valuations increased across all three assets
- C-PACE repayments passed through to tenants under lease structure

New Construction – Ground-Up LEED Multifamily

Property: 112-unit multifamily development in Denver, CO
Project: Green construction package including energy-efficient envelope, HVAC, and rooftop solar
Total Cost: $39M
C-PACE Financing: $8.1M
Challenge: Developer sought non-dilutive capital to enhance sustainability profile and secure better perm debt
Result:
- Met green lending requirements for agency takeout
- Increased property’s appraised value with improved energy metrics
- C-PACE integrated cleanly into capital stack without senior lender objection

Retroactive PACE Financing – Capital Recovery After Completion

Property: 7-story multifamily building in Maryland
Project: Energy-efficient HVAC, roof insulation, and water-saving plumbing upgrades completed within the past 18 months
Total Project Cost: $6.2M
C-PACE Financing: $2.8M retroactively applied
Challenge: Owner self-funded improvements but needed to recoup capital to pursue new acquisitions
Result:
- Owner reimbursed for nearly $3M of recent green improvements
- Proceeds reinvested into next property without taking on new debt
- Maintained positive cash flow and strong leverage position across portfolio


Let’s Talk About Your Project

Whether you're planning a retrofit, repositioning, or new build, C-PACE may be the key to unlocking capital and adding long-term value to your property.

Call us today at (877) 548-9454