Commercial Property Assessed Clean Energy or C-PACE financing is positioned for massive growth, and could serve as a competitor to other financing sources like mezzanine and EB-5. The recent popularity of ESG investments as well as new adoption of the PACE program in New York City have shined a spotlight on the PACE program.

ESG interest has grown tremendously in the last 12 months, with several companies announcing new or increased sustainability targets. This trend will help boost demand and availability of C-PACE. “Capital is looking for viable ESG investments, and PACE is right down the middle of the fairway when it comes to ESG,” Thomas O’Connor, a partner at NYC real estate law firm Duval & Stachenfeld LLP, tells “It is a sound investment; it is long-term; and it has a fixed rate. PACE financing acts like a tax assessment, and it has the same priorities as a tax assessment. In other words, the PACE payment comes before the mortgage loan payment. It makes it a very safe, sound investment. It is basically debt that gets paid before any other debt.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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