White Oak’s Commercial Property Assessed Clean Energy (C-PACE) product is a unique way to finance energy efficiency, renewable energy, water conservation, and other improvements to commercial properties, including certain manufacturing equipment and other capital expenditures. What makes C-PACE different from a traditional loan is that users repay their project costs through a special property tax assessment invoiced on their property tax bill. The C-PACE obligation is tied to the property only – There are no personal or parent company guarantees needed – and transfers with ownership of the property.

White Oak is an official C-PACE partner of local governments and works directly with them to streamline the process and ensure timely execution. With C-PACE, we can finance up to 100% of your project’s hard and soft costs, including professional fees and transaction expenses.

Please have a look at our representative financing terms and sample list of eligible upgrades. If you have a project you’d like us to fund, please call us or fill out our brief online application form.

• Can usually be added to capital structure without modifying existing debt
• Simple structure and documentation, with no financial or other maintenance
  covenants
• Long repayment periods and attractive interest rates compare favorably to other purchase money financings and reduce investment payback period
• Lower rates and more flexible structure than mezzanine debt or equity
• No guarantee needed from principals or parent companies
• Payments can be delayed for up to two years by using C-PACE proceeds to pre-fund interest
• C-PACE installments are similar to property taxes and do not accelerate if a payment is missed

A sample of eligible energy efficiency improvements:

• Manufacturing equipment expected to generate cost savings
• Heating, ventilation and air conditioning systems and their related parts and accessories
• Efficient lighting systems, including LED, compact fluorescent and others
• Upgraded windows and window coatings
• Improvements to doors, walls and other exterior materials
• Energy efficient roofing materials
• Water boilers/heating systems
• Solar, wind and geothermal power systems
• Electric vehicle charging stations

A sample of eligible water conservation improvements:

• Low-flow appliances and fixtures
• Irrigation solutions and related systems and controls
• Rainwater collection
• Wastewater recovery or treatment applications

A sample of eligible seismic improvements (California and Oregon only):

• Foundation improvements
• Shear walls
• Brace and support frames
• Additional bracing for fixtures and emergency support systems

Project Size:

• $3 million to $100 million and up (subject to cap of 35% loan-to-value ratio in certain states)

Use of Proceeds:

• 100% of hard and soft costs, including engineering studies, appraisals, etc.
• Capitalized interest, reserves and transaction expenses
• See Eligible Improvements

Interest Rate:

• Attractive fixed rates

Terms:

• Fixed payments spread over improvement’s useful life (10 to 30 years)
• No covenants to manage and almost no reporting requirements
• No personal or corporate guarantees

White Oak’s C-PACE solution is a unique way for property owners to finance energy efficiency, renewable energy, water conservation, and other improvements to commercial properties. C-PACE is not a loan and is instead repaid as an additional amount invoiced on property tax statements. The additional line item on your property tax statement is created by opting into a special tax assessment to repay the financing (the C-PACE contractual assessment).

Most states have passed legislation enabling this unique financing structure, and cities or counties must opt into the program. White Oak then partners with these local governments, which serve as a conduit. White Oak identifies the projects and sets terms within the guidelines set by state laws and local program administrators. Once terms are agreed to between White Oak and the property owner, the local tax authority (city or county) creates the C-PACE contractual assessment on the tax roll.

1. There are no financial or other maintenance covenants in the C-PACE documents.
2. Personal and/or corporate guarantees are not required for C-PACE.
3. C-PACE obligations never accelerate, even if a payment is missed.
4. C-PACE obligations do not attach to the property owner. If you sell the property, no approval is needed for buyer to assume C-PACE to liability.
5. Long repayment periods and attractive rates typically result in lower installment payments than would be required for many loans.

This is a newer financing solution continuing to gain awareness among both borrowers and capital providers. The first state legislation for enabling commercial C-PACE projects was passed in 2010, and many states have only come online in recent years.

Your state must have enabling legislation, and your city or county must create or opt into a program. Many local governments are simply waiting to receive their first request before opting into a program, and White Oak can facilitate that process to make your project happen.

Yes!

These guidelines are typically established by the state legislation that enables C-PACE. In addition to energy efficiency, renewable energy and water conservation projects, certain states allow other improvements relevant to that state. For example, earthquake-proofing projects are allowed in California and Oregon. In Florida, storm-proofing improvements are eligible.

100% of improvement costs are eligible, including soft costs such as engineering studies and energy savings analyses. You can also capitalize interest and fees.

Your property tax statement will include an additional line-item for your C-PACE assessment payment.

This may vary by area, but usually yes.

Counties generally have standard procedures for collecting past-due property taxes, and they will typically follow these same procedures for past-due C-PACE assessments owed. The remaining C-PACE balance will NOT accelerate, just like your future property taxes due in future years wouldn’t accelerate.

Many states have “lookback periods” that allow property owners to use C-PACE for up to three years after completion of the project.

1. There are no covenants or technical defaults for C-PACE arrangements.
2. Personal and/or corporate guarantees are never required for C-PACE.
3. C-PACE obligations never accelerate, even if a payment is missed.
4. C-PACE obligations do not attach to the property owner. If you sell the property, C-PACE stays with the property.
5. Long repayment periods typically result in lower installment payments than would be required for many loans.

If a lender has a mortgage on the subject property, then that lender MUST approve your C-PACE financing.

1. Annual savings from improvements often exceed annual C-PACE assessments, improving the property’s cash flow.
2. C-PACE arrangements do not accelerate, which means the dollar amount of C-PACE obligations potentially priming the senior mortgage lender are small relative to the property’s value.
3. C-PACE arrangements do not have covenants that property owners could trip.

The new owner will assume payments for the C-PACE assessment, just like they become responsible for future property taxes on the property. There are no consents or other administrative hurdles required. You also have the option of prepaying C-PACE obligations before selling the property.

C-PACE simply refers to PACE programs for commercial properties, whereas R-PACE refers to PACE programs for residential homeowners. Note that multifamily buildings with five or more units are generally considered commercial, not residential properties. White Oak only funds projects for commercial properties and apartment buildings with five or more units.