C-PACE RECAPITALIZATION

 

Current economic volatility has caused an unprecedented level of commercial real estate market disruption. Ongoing or recently-completed construction or retrofitted properties can access low-cost, long-term financing with no payment for 24 months to replenish reserves, provide working capital, and reduce senior loan payments – bridging properties to stabilization.

 

STABLE FINANCING THROUGH ANY ECONOMIC CLIMATE

PROCEEDS MAY BE USED TO:

Fund Construction Cost Overruns

Replenish Operating Reserves

Cover Existing Lender Debt Service

Pay Down Existing Leverage

PROGRAM HIGHLIGHTS:

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Net proceeds up to 20% of property value

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Fixed interest rate ~6% with a long amortization (20-30 years from first payment date)

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Delayed first repayment – typically 24 months post-closing

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Non-recourse except for ongoing development projects which require a completion guarantee

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Financing secured via a non-accelerating property tax assessment (C-PACE assessment)

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Prepayable at any time subject to declining payoff fee

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No financial covenants after completion

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Transparent, rapid approval process

SAMPLE IMPACT:

Recapitalization for a $50M Student Housing Project

ELIGIBLE PROPERTIES AND SPONSORS:

  • C-PACE-eligible work planned or completed at the property within market’s relevant lookback period; ground-up development projects eligible in most C-PACE markets (see map below)
  • All standard commercial property types qualify: multifamily, office, industrial, retail, hospitality, senior living, etc.
  • Limited to well-located properties in a top 50 MSA
  • No tax delinquencies in the prior 3 years
  • Sponsor background searches will be run and any past material legal issues must be disclosed by sponsor up front
  • Property must have a viable path to stabilization with a >1.25x DSCR within 5 years
  • Properties with monetary defaults on existing financing will be reviewed on a case-by-case basis
  • Written consent must be provided from all secured lenders

Retroactive Limits:

CA: 3 years
MO: Case-by-case
CT: 1 year
NY: Case-by-case
DC: Case-by-case
OH: No limit
FL: 3 years
OR: 1 year
IL: Case-by-case
PA: Back to Aug of 2018
KY: No limit
RI: Back to July of 2015
MD: Case-by-case
UT: 3 years
MI: 3 years
WI: 30 months
MN: 1 year

C-PACE ELIGIBILITY:

Greenworks’ recapitalization funds are limited by C-PACE (Commercial Property Assessed Clean Energy) eligibility

  1.  Properties must have ongoing or recently completed C-PACE-eligible construction. Typically, all energy and water-related construction (ex. window, HVAC replacement, etc.) and associated soft costs or green new construction qualify.
  2.  If C-PACE eligible construction is already completed, it must be located within a C-PACE program that allows for retroactive financing.

Why Use Greenworks Lending?

Greenworks Lending is the leading provider of C-PACE financing in the country. Our founders launched and lead the first successful C-PACE program and have brought their expertise and know-how to Greenworks Lending. We offer a transparent, rapid approval process and a dedicated team ready to assists with all aspects of a C-PACE financed project who can handle all the heavy lifting.

NEW CONSTRUCTION & GUT REHAB CASE STUDIES