Is C-PACE worth the brain damage for a mid-size value-add deal?

Question

Looking at a $14M retrofit of a 1980s office-to-flex conversion. C-PACE could cover the energy scope at attractive pricing but my senior lender is balking. Is the intercreditor fight worth it?

Paul Stanton · Accepted Answer

C-PACE pencils when three things line up: your senior is one of the (growing but still short) list of lenders with a standard consent process, your energy scope is genuinely 15%+ of project cost, and you can hold through the assessment's prepayment window.

On a $14M conversion, the consent fight is usually two to four weeks with a lender who has done it before — and a dead end with one who hasn't. Ask your lender for their C-PACE consent precedent before you spend another dollar on structuring. Their answer tells you everything.

Is C-PACE worth the brain damage for a mid-size value-add deal?

Expert answers (1)