What is C-PACE?

Commercial Property Assessed Clean Energy (C-PACE) is a financing solution that unlocks capital for property owners to make accretive building upgrades, fund new construction, provide rescue capital and maintain reserves and a healthy relationship with the senior lender. Projects typically include an energy efficiency, resiliency, or renewable energy component though prospective borrowers often find that the C-PACE qualifying standards are quite achievable and property improvements they’ve made in the past (up to 10 years in some states) qualify them for funding.

PACE-enabling legislation has been passed in 37 states and D.C. with programs active in 26 states. To see states where C-PACE is live, along with the lookback period available for each, be sure to explore our PACE eligibility map.

How it Works

C-PACE financing is long-term (depending on the program, up to 30 years), fixed-rate for the duration of the term, non-recourse, and considerably cheaper than traditional mezzanine debt –without covenants and guarantees.

Property owners looking for an accretive form of capital to optimize their capital stack or fund new projects clearly benefit from choosing C-PACE. Tenants win big as well, as environmentally-friendly upgrades make for a healthier and more enjoyable tenant experience (and higher rents).

Unlike a traditional loan, C-PACE financing is repaid via property tax assessments. This means borrowers make payments only when property taxes are due, rather than every month.

The assessment remains with the property in the event of a sale enabling sellers to provide built-in seller financing.

As its name suggests, C-PACE-eligible projects improve the efficiency and value of a property – common measures include:

  • Energy Efficiency (HVAC, insulation, lighting, etc.)
  • Renewable Energy (e.g., solar)
  • Resiliency Measures (seismic, flood, storm, etc.)
  • Water Reduction
  • Soft Costs
  • Additional Qualified Improvements Related to New Construction

Bayview PACE Advantages

With the support of fully integrated investment platform, Bayview Asset Management, and a team made of up some of the country’s foremost PACE experts, Bayview PACE is positioned to offer solutions and support that other firms will be challenged to match:

  • Consistently lower rates and fees
  • Longer capitalized interest period
  • Up to a 10-year interest-only period*
  • PACE lookback of up to 10 years*
  • Transactions from $500,000 to over $100MM
  • Up to 30% LTV
  • Structuring expertise across the capital stack based on billions of completed transactions

*may be limited by program availability

C-PACE Project Use Cases

New Construction

Mandated Building Upgrades

Rescue Capital


Equity Refinance

New Construction

Reinvent your capital stack. As a more cost-effective alternative to mezzanine debt, owners can more easily and affordably fill the gaps within their financing structure to fund new construction projects.

Mandated Building Upgrades

Property owners in certain states and municipalities must make specific efficiency and structural improvements or face significant and recurring fines. Examples include California (seismic retrofit), Washington, DC (BEPS), New York (Local Law 97), and Washington State (seismic retrofit and energy efficiency).

Rescue Capital

Today’s uncertain economic climate and COVID recovery presents new challenges for commercial property owners. For those with a pressing need for capital, PACE financing may be the ideal recovery solution.

Common Uses

  • Cover payments in arrears and pay down mortgage balances
  • Provide debt service reserves
  • Provide operating reserves and working capital
  • Complete unfinished projects that ran over budget

Bayview PACE Benefits:

  • First out-of-pocket payment can be delayed for up to 3 years
  • Interest-only period for up to 10 years
  • Fixed rates in the mid 5% range
  • Rescue PACE loans can close in under 30 days

How it Works

Sample Project: Hotel Rescue Capital

  • Issue: Occupancy and ADR are down significantly due to COVID-19
  • Appraised Property Value: $50MM
  • Senior Lender Debt: $30MM
  • PACE Solution: $15MM retroactive PACE financing that reduces the senior lender’s exposure while providing reserves during the hotel owner’s recovery period


  • Loan may be to 30% of property value
  • Property must have been built or renovated in past 3 years*
  • Eligible states include: CA, CO, CT, DC, IL, FL, MO, MD, MI, MN, NY, PA, UT


C-PACE financing can be used for older buildings that need funding for deferred maintenance, major upgrades. These improvements will ultimately help attract and retain tenants.

Equity Refinance

With lender support, property owners can utilize C-PACE to take out equity partners or other forms of capital that are more expensive.

Retroactive PACE

Property owners and developers do not need to create a renovation or new construction project in order to take advantage of C-PACE benefits. Many C-PACE-enabled states allow borrowers to utilize C-PACE funds for construction projects that have been completed in the past 10 years.

Retroactive PACE Benefits

  • No PACE payments for up to 3 years – capitalized interest can be built into the PACE amount
  • Proceeds can be used to pay down senior lender, pay for operating expenses, or be held in reserve for debt service
  • C-PACE financing can close in under 30 days

Sample Transaction

  • Appraised Value: $50MM
  • Senior Lender Debt: $30MM
  • C-PACE addresses: Occupancy and ADR are shortfalls due to COVID-19


Retroactive PACE Loan: $15MM
Senior Loan Pay down: $5MM
Debt Service Reserves: $7MM
Capitalized Interest: $3MM

Did You Know? Lookback periods for Retroactive PACE transactions vary from state to state. Refer to our Participating States map to see if your scenario qualifies, or reach out to us directly to confirm.

Lender Consent

In every instance, C-PACE financing from Bayview PACE will seek consent from any mortgage holder on the property. C-PACE financing is non-recourse, low-rate, and long-term (up to 30 years) capital that stays attached to the property after a sale. C-PACE financing is designed to provide critical funds to enable a property owner to execute their vision and in some cases provide critical capital to cover their mortgage. Obtaining senior lender consent is a crucial component of the C-PACE funding process. That’s where Bayview PACE stands apart from other providers.

Our longstanding relationships with senior lenders across the country help us move faster and with more certainty during each transaction. We understand these lenders’ needs, so we specialize in providing structuring solutions that offer sufficient protection for all parties.

This helps us get to “yes” on more C-PACE deals than the competition.

How to Qualify

Every situation in real estate is unique, Bayview has underwritten and closed billions of real estate financings. Leveraging that background and the Bayview PACE team’s expertise, we can quickly ascertain whether a project fits.  We start with a conversation, but in time will need all of the documentation that a traditional senior lender will require. Please Contact Us today.

Contact Us Today 800-981-2435