Bipartisan Interest Fuels Widespread Adoption of C-PACE Financing Laws It may have taken more than a decade, but after starting out as a niche financing vehicle to create more energy-efficient and resilient buildings, the commercial property assessed clean energy (C-PACE) program has arguably achieved mainstream acceptance. Roughly 40 states and Washington, D.C., now either offer or are developing C-PACE programs. Over the last year alone, Georgia, Hawaii, New Mexico, Minnesota and Idaho passed legislation enabling or substantially improving the financing tool, points out Rafi Golberstein, CEO of PACE Loan Group, a direct lender of C-PACE headquartered in Minneapolis, Minn. What’s more, he adds, New Jersey and North Carolina are among states that in the coming months are expected to advance bills authorizing the use of C-PACE, or PACE for short. Given the current partisanship within the country, one of the most revealing characteristics of PACE’s growing appeal has been its ability to cross the political aisle, Golberstein observed. PACE’s popularity in particular has ascended over the last several months as developers have sought fresh capital to enhance their financial flexibility in a rising interest rate environment. “PACE is really turning out to be a bipartisan issue, as many state lawmakers are realizing that it is a great financing tool for commercial real estate renovations as well as economic development,” says Golberstein, who also is on the executive committee of C-PACE Alliance, a trade group lobbying for the program’s expansion. “It’s refreshing to see state legislatures pick this up, whether they happen to be blue states, red states or purple states. We don’t view a state’s tendency to lean one way or the other as a major hurdle to the program’s expansion.” https://lnkd.in/dY3fgh-Y Sponsored by PACE Loan Group #cre #commercialrealestate #paceloans #cpace
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C-PACE Offers Bipartisan Appeal, Solutions for Energy-Efficient Building Projects It may have taken more than a decade, but after starting out as a niche financing vehicle to create more energy-efficient and resilient buildings, the commercial property assessed clean energy (C-PACE) program has arguably achieved mainstream acceptance. Roughly 40 states and Washington, D.C., now either offer or are developing C-PACE programs. Over the last year alone, Georgia, Hawaii, New Mexico, Minnesota and Idaho passed legislation enabling or substantially improving the financing tool, points out Rafi Golberstein, CEO of PACE Loan Group, a direct lender of C-PACE headquartered in Minneapolis, Minn. What’s more, he adds, New Jersey and North Carolina are among states that in the coming months are expected to advance bills authorizing the use of C-PACE, or PACE for short. Given the current partisanship within the country, one of the most revealing characteristics of PACE’s growing appeal has been its ability to cross the political aisle, Golberstein observed. PACE’s popularity in particular has ascended over the last several months as developers have sought fresh capital to enhance their financial flexibility in a rising interest rate environment. “PACE is really turning out to be a bipartisan issue, as many state lawmakers are realizing that it is a great financing tool for commercial real estate renovations as well as economic development,” says Golberstein, who also is on the executive committee of C-PACE Alliance, a trade group lobbying for the program’s expansion. “It’s refreshing to see state legislatures pick this up, whether they happen to be blue states, red states or purple states. We don’t view a state’s tendency to lean one way or the other as a major hurdle to the program’s expansion.” https://lnkd.in/dY3fgh-Y Sponsored by PACE Loan Group #cre #commercialrealestate #paceloans #cpace
Bipartisan Interest Fuels Widespread Adoption of C-PACE Financing Laws
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RICHMOND, VA - More details are coming to light about how Richmond’s new plan to finance the ballpark-anchored Diamond District development would play out. Ordinances introduced Monday by City Council reveal more of the nitty-gritty behind the new plan in which the city would issue its own bonds to finance the ballpark and infrastructure for the development’s first phase, which has grown in size and scope. Where the first phase had previously totaled 22 acres, with the ballpark filling a 7-acre footprint, a new development plan included in the ordinances shows the first phase now totaling 30 acres, with the 360-degree-design, 10,000-seat stadium filling 10 of those acres. The first phase now includes land north of Robin Hood Road as well as areas adjacent to the stadium at the site’s southern end. The new agreement calls for those sites to be developed in three subphases, the first of which includes the ballpark and land beside it. The city would issue $170 million in bonds to finance the total phase, with $130 million in general obligation bonds going to the ballpark and $40 million in lease revenue bonds covering the infrastructure improvements. The stadium bonds would cover construction of the $110 million stadium as well as costs to design, acquire and equip it. The city would assume the debt on all of those bonds, meaning it would be responsible for repaying them if the stadium isn’t built or the project does not pay for itself with tax revenue generated by the development over time. The city wants to issue its own bonds because of the cost savings expected from a lower municipal interest rate and to secure $24 million in state sales tax incentives that are set to expire July 1. Issuing its own bonds also would ensure a faster turnaround to complete the ballpark by the city’s April 2026 target. The debt on the stadium bonds would amount to $7 million in annual payments that otherwise would be covered by the incremental tax revenue. The infrastructure debt payments would be $3 million annually, depending on the amount of stadium rent to be paid by the Richmond Flying Squirrels that otherwise would cover the cost of the bonds. The ballclub’s lease agreement would establish the rent payments but has yet to be finalized and was not included in the ordinances, which council could vote on after a public hearing scheduled for its April 22 meeting. Also referred to in but missing from the documents is a development agreement for the new ballpark between the Navigators Baseball LP, which is the Flying Squirrels’ ownership entity, and the Richmond Economic Development Authority, which owns the land. FOR MORE DETAILS, CLICK ON THE LINK BELOW #escrowcredirt #newmarktitleservices
Newly filed ordinances detail new game plan for Diamond District financing
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C-PACE’s popularity has increased as banks retreated from commercial real estate lending in recent years and demand for sustainable property development increased. More states are also legally allowing C-PACE financing. Cumulative C-PACE investments shot up from $2.3B in 2020 to $7.2B in 2023, according to PACENation data. About 40 states plus Washington, D.C. have laws allowing PACE financing. More states adopting PACE-enabling legislation may be partially responsible for boosting C-PACE loan originations, and additional states are considering legislation that would allow it. #CPACE #CleanEnergy #CommercialFinancing #CommercialRealEstateLending
Carlyle Invests In Clean Energy Commercial Financing With A Stake In North Bridge
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Will C-PACER, the cheapest financing option for many commercial energy projects, realize its full potential in the most regulated property market? C-PACER enabling legislation was passed shortly after WA became the first state to announce a building performance standard. But due to COVID related budget constraints at the time, WA decided to take a shortcut. Instead of administering PACE at the state level, these technical duties were assigned to counties who struggle with limited bandwidth and complex financial matters. The consequence - out of the 39 counties in WA State subject to onerous regulations, only 8 have made C-PACER available to property owners, and only a handful of transactions have closed. This is a very big problem. Many billions in C-PACER capital must flow throughout WA's commercial building stock. This scale will only be achieved with a specialized state-level administrator who can harmonize what is now a fragmented market, who can lower administration fees that weigh heavily on smaller projects, and who is better equipped to engage and educate the commercial sector. Such institutional capacity building warrants state funding. Here are a few other ways the state can spur more C-PACER investments - 1) capitalize a loan loss reserve for senior lenders who agree to subordinate, 2) collect payments from property owners and remit funds to C-PACER lenders, that way a third-party is monitoring the performance of the loan, which reassures senior lenders, and 3) capitalize a low-income C-PACER facility for projects that fail to meet the higher debt coverage thresholds of private lenders who need confident cashflows undergirding this non-recourse debt. C-PACER will only thrive in WA if the state assumes a more active role. Lenders cannot go it alone. And counties are not the partners lenders need. Furthermore, if enough public capital is placed on the table, if a "CCA put" can be engendered, then private parties will have greater conviction to seal transactions, especially senior lenders who fret about their security position. Perception is key. WA State should step up and say - I have got your back.
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As a commercial real estate appraiser and property assessor, I'm excited to share a significant development in property financing that could impact our industry. A recent IRS private letter ruling has expanded the potential for Commercial Property Assessed Clean Energy (C-PACE) financing, which could have notable implications for property valuations and assessments. Key points for appraisers and assessors: 1) Valuation Impact: The increased availability of C-PACE financing could lead to more energy-efficient improvements in commercial properties. This may positively affect property values due to reduced operating costs and increased marketability of "green" buildings. 2) Assessment Considerations: As C-PACE loans are repaid through property tax assessments, we'll need to carefully account for these in our property tax calculations and ensure they're correctly reflected in our assessments. 3) Long-term Perspective: The long repayment terms (20-30 years) of C-PACE financing mean we'll need to consider the long-term impact on property values and tax burdens when appraising or assessing affected properties. 4) Market Trends: This ruling could accelerate the adoption of energy-efficient improvements in commercial real estate. As appraisers and assessors, we'll need to stay informed about these trends and their impact on local markets. 5) Comparables: As more properties utilize C-PACE financing, we may need to adjust our approach to comparable sales, ensuring we account for the presence or absence of C-PACE assessments and related improvements. This development presents both opportunities and challenges for our profession. It's crucial that we stay informed and adapt our methodologies accordingly. Thank you to the crew at Dentons (Charles Gelinas, Marshall Feiring, Ryan J. Zucchetto and fellow Cornell alum Alexander Hakopian)
IRS Ruling Provides Additional Advantages to Investors in C-PACE Financings
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Raw land funding refers to the financial resources and strategies used to acquire and develop raw land, which is undeveloped land without improvements such as buildings, roads, or utilities. Here are some common sources of raw land funding: 1. Cash: Using personal savings or liquid assets to purchase the land. 2. Private Lenders: Borrowing from private individuals or companies, often with shorter loan terms and higher interest rates. 3. Hard Money Lenders: Short-term, high-interest loans for land acquisition and development. 4. Construction Loans: Financing for land development and construction projects. 5. Land Loans: Long-term loans specifically for land acquisition. 6. Partnerships: Collaborating with investors or developers to share costs and risks. 7. Crowdfunding: Raising funds from a large number of people through online platforms. 8. Government Programs: Utilizing government-backed loans or grants for land development and conservation. 9. Seller Financing: Negotiating with the seller to provide financing or deferred payment. 10. Joint Ventures: Partnering with other companies or investors to share costs and profits. 11. Option Agreements: Securing an option to purchase the land at a future date. 12. Lease Option: Leasing the land with the option to purchase. When seeking raw land funding, consider factors such as: - Creditworthiness - Land value and potential - Development plans and timelines - Collateral and security - Interest rates and loan terms - Partnerships and joint ventures - Government programs and incentives - Environmental and zoning regulations It's essential to consult with financial and legal experts to determine the best funding strategy for your specific raw land acquisition and development goals.
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#RealEstateInvestors - Use these #loans to get your #constructionproject across the finish line https://zurl.co/Msjc #DeborahPeterson #DownsizingPNW #Downsizing #RealEstate #eXpRealty
Real Estate Investors: Use These Loans to Get Your Construction Project Across the Fi...
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A Customer Centric Product Owner Specializing in Using Data Analytics | Agile | SQL | Python | Power BI | Tableau | Roadmaps | Defining Requirements | AWS | Athena | QuickSight | Certified Scrum Product Owner® (CSPO®)
What is the loan programs office? Energy Department Loan Programs Office, designed to help small companies that otherwise might not get funding from a bank, majorly remembered for being humiliated a decade ago, when the agency with the assistance of the then vice president doled out just over a half billion for a failed solar outfit called, Solyndra, promised to power a half million homes and create a thousand jobs. A decade ago Solyndra wasn't the only failed company that was bet on. There were others as well: Abound (the failed solar company), Fisker Automotive (the failed electric-car maker) and A123 (the failed battery maker). Fisker was the poster child that was supposed to compete with tesla. A decade ago, the size of the clean energy pool which contributed to these failed startups was $80 billion. Why does it matter now? The same office now has $400 billion worth of funds and at the center of it all is Jigar Shah, the man tasked with leading the effort. The agency, armed with billions has so far agreed to the following: $1 billion loan for Monolith, a company that promises to make hydrogen out of natural gas. Sunnova, a solar company, landed a $3 billion loan guarantee. General Motors and LG scooped up $2.5 billion to build electric-vehicle battery plants. Ford landed a record $9.2 billion battery commitment.(That is $3.3 billion more than the bailout money that they received during the 2009 financial crisis) What is the issue? The House Energy and Commerce Committee, have sent a letter to Jigar Shah demanding answers about an October report in the Washington Free Beacon. The report claims that a trade association founded by Mr Shah is selling access to the man mandated with spending $400 billion. The association tripled its revenues mostly on the back of hosting and selling out receptions for its paying members in-order to get an exclusive seat with Mr Shah. And if that wasn't enough, many of the clean energy companies funded by the agency are filing for bankruptcy or putting their clean energy plans on hold. Ford announced recently it is putting on hold production at one of three massive EV plants to be financed by its DOE loan. In October, Li-Cycle (with a $375 million loan commitment) suspended construction of its flagship Rochester, N.Y., facility citing costs. Money isn't limitless. This seems to be a misappropriation of funds at the highest levels. The slush-fund and the power concentrated in the hands of a few will end up in disaster as it did a decade ago. There surely has to be a better mechanism to spend this money. #energy #government #cleanenergy #money
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According to a recent Bisnow report, a staggering $929 Billion in commercial loans will mature in 2024. Potential Impact on Tenants As tenants in commercial spaces, it's crucial to understand how this impending debt maturity might affect your leases and operations. Here are a few key points to consider: 1.Renewal Negotiations: Landlords facing maturing debt may seek to renegotiate lease terms, potentially impacting rental rates, lease durations, and other terms. Stay proactive in your renewal negotiations and seek professional representation like The Schmidt Group to secure favorable terms amid changing market conditions. 2. Ownership Changes: In some cases, properties with maturing debt may undergo ownership changes, leading to shifts in property management practices or investment strategies. Your tenant representative can keep you informed regarding any changes in property ownership that could impact your tenancy. 3.Market Condition: The flux of maturing debt could influence overall market dynamics, affecting vacancy rates, rental prices, and property amenities. The Schmidt Group keeps an eye on market trends to adapt strategies accordingly that could impact your bottom line If you have a lease maturing in the next 18 months reach out we can provide a comprehensive strategy at no cost. David The Schmidt Group San Diego’s premier Tenant Representation for Purchase or Leasing ”It’s the lease we can do” 7514 Girard Ave. Suite 1505 La Jolla, CA 92037 619-218-5907
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According to a recent Bisnow report, a staggering $929 Billion in commercial loans will mature in 2024. Potential Impact on Tenants As tenants in commercial spaces, it's crucial to understand how this impending debt maturity might affect your leases and operations. Here are a few key points to consider: 1.Renewal Negotiations: Landlords facing maturing debt may seek to renegotiate lease terms, potentially impacting rental rates, lease durations, and other terms. Stay proactive in your renewal negotiations and seek professional representation like The Schmidt Group to secure favorable terms amid changing market conditions. 2. Ownership Changes: In some cases, properties with maturing debt may undergo ownership changes, leading to shifts in property management practices or investment strategies. Your tenant representative can keep you informed regarding any changes in property ownership that could impact your tenancy. 3.Market Condition: The flux of maturing debt could influence overall market dynamics, affecting vacancy rates, rental prices, and property amenities. The Schmidt Group keeps an eye on market trends to adapt strategies accordingly that could impact your bottom line If you have a lease maturing in the next 18 months reach out we can provide a comprehensive strategy at no cost. David The Schmidt Group San Diego’s premier Tenant Representation for Purchase or Leasing ”It’s the lease we can do” 7514 Girard Ave. Suite 1505 La Jolla, CA 92037 619-218-5907
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