Financing the Future Of Energy Efficiency and Resiliency
Counterpointe Sustainable Real Estate has the commercial real estate expertise to help project developers, owners, mortgage bankers/brokers and other commercial real estate professionals
UTILIZE YOUR CAPITAL MORE EFFICIENTLY
100% financing of improvements including financing costs and any prepaid service contracts
Lower operating costs from energy efficiency improvements
Depending upon lease structure, may pass-through costs as operating expenses, property tax reimbursement
First payment may be deferred for up to 2 years by capitalizing interest in the financing
Previously completed project may be eligible for financing in some jurisdictions
LOWER COST OF CAPITAL THAN EQUITY OR MEZZANINE DEBT
Fixed rate, long-term financing with no balloon payments
Self-amortizing during term
Owner retains tax incentives, rebates, deductions and depreciation for the improvements
May receive off balance sheet treatment
Improves property cash flow through overall capital cost and utility expense reductions
No acceleration clauses and fully transferable if property is sold
Non-recourse with simple documentation and no technical default provisions
WHY PACE ?
CHALLENGE #1
Most commercial real estate accounting use separate Capital and Operating Budgets
- Savings from reducing operating costs not applied towards improvements, but towards other capital investments
- Cost of improvement over estimated useful life not considered in budgets
- Net annual cash flow is crticial issue to owners
The CounterpointeSRE Solution:
- 100% financing: no capital expenditure or upfront costs to owners for the improvement
- Long amortization schedule with fixed rates keeps savings to investment ratio greater than one.
CHALLENGE #2
Commercial Real Estate Owners want to increase return on investment (ROI) for green building improvements
- Split Incentives for Owner and Tenants
- Owner pays cost for improvement and often only the tenant gets benefit through utility savings
- High turnover rates with many buildings sold before savings are realized
The CounterpointeSRE Solution:
- No upfront costs to owners
- Pass-through costs to tenants as permitted by lease as assessment repaid through property tax bill
- Some rent control laws permit pass-through to tenants
- Assessment stays on property if sold
(855) 431-4400
More information can be found in FAQ section here
