PACE Lending for Hotel Properties
Commercial Property Assessed Clean Energy (CPACE) provides real estate developers and property owners with an innovative tool to finance construction projects within existing buildings or new construction.
Benefits:
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Funding up to 25% of building’s value
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No personal guarantees
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Up to 30 year fixed-rate
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Lower rates/cost than mezzanine debt or equity
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No payments up to 2 years
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No principal repayment required upon sale
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Ability to pass through tax assessment to tenants or hotel guests
PACE can fund a wide variety of improvements including:
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HVACR and Controls
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Lighting & Electrical
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Building Envelope
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Water Efficiency
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Renewable Energy / CoGen
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Associated Soft Costs
Loan Guidelines:
Nationwide
$1 Million to $50 Million
Fixed starting at 5.75%
Term: up to 30 years
Interest only or matched to first mortgage
For: New construction, renovations and recapitalization
Up to 30% LTC and LTV
Origination varies
Non-recourse
Flexible prepayment