CastleGreen Finance, C-PACE Financing, Efficient Sustainable Energy

New York City / C-PACE

The City of New York has endorsed PACE (Property Assessed Clean Engergy) legislation to enable the flow of private capital to property owners. The program allows private capital to provide 100% long-term, fixed-rate financing for energy efficiency, resiliency, water conservation and sustainability upgrades through a special tax assessment.

New York City advocates for C-PACE (Commercial Property Assessed Clean Energy) by adopting their underlying financing program. This makes NYC property owners eligible for obtaining C-PACE financing that provides capital for modernizing commercial buildings or developing new commercial assets with clean energy, water conservation and renewable energy improvements. As a proven financial instrument, C-PACE programs promote the use of clean sustainable energy by facilitating energy saving upgrades to commercial and multifamily properties.

CastleGreen Finance, in conjunction with C-PACE in New York City, facilitates energy efficiency project investments for their clients to further promote the use of clean sustainable energy and resource conservation.

NYC PACE is designed to help commercial properties of all types, from multifamily, office, industrial, retail to mixed-specialty investments. PACE-NYC programs place an emphasis on environmental impact.

New York City's Passes Climate Mobilization Act (Local Law 97)

New York City 4th of July 2021

In April of 2019, The New York City Council passed the Climate Mobilization Act, which included several pieces of legislation aimed to fight climate change. The most impactful of these measures is Local Law 97, which requires most buildings over 25,000 square feet to reduce their greenhouse gas emissions by implementing energy efficiency upgrades and taking other clean energy steps (many beginning in 2024). Concurrently, the Council approved a measure to implement a New York City Property Assessed Clean Energy (PACE) program, allowing New York City building owners to access a valuable tool by which they can finance energy efficiency retrofits and other clean energy measures through an assessment placed on their property tax bills. PACE is an innovative financing tool that enables owners of eligible properties to finance up to 100% of renewable energy, energy efficiency and other resiliency improvements. Financing is provided by private sector funding with repayment terms that match the useful life of the improvements, up to 30 years, with no balloon payment. Owners repay the financing through a special assessment on the improved property.

NYC PACE / CastleGreen Financing Environment Friendly Energy Solutions and Updating

C-PACE Financed New Construction Energy Efficient Commercial Building Designs

A wide variety of the construction elements of full building designs can be funded through CastleGreen Finance and C-PACE. Eligible energy efficient components range from building envelope insulation, including windows and roofs, HVAC systems, lighting and electrical, conveyor systems, building controls and low flow water saving fixtures, among others. C-PACE can also be used for soft costs, such as architectural costs, impact and permit fees and engineering costs, as well as closing costs and financing fees.

Ceiling and light panel with Fluorescent lamp on the modern ceil

Lighting retrofits are among the most popular single measure renovations due to their relatively high savings to investment ratio. A lighting retrofit will generally return the equity investment over a 3 to 4 year period. They are often combined with lighting control systems to further enhance the savings benefits and remove the impact of management on the savings. CastleGreen Finance in collaboration with C-PACE Real Estate financing can fund 100% of a lighting retrofit project, eliminating the need for additional equity and stretching the payments over a 10-15 year period.

Heating, Ventilation and Air Conditioning (HVAC) upgrades are among the most expensive single measure improvements commercial property owners will require. In addition to the energy efficiency to be gained by installing a new HVAC system, new temperature control systems help maintain the utility savings often lost through management inefficiency. The current health crisis has added a new element to HVAC upgrades as new guidance to improve ventilation, air quality and hepa filters increase the necessity for this important building improvement. CastleGreen Finance with C-PACE Real Estate financing can fund 100% of an HVAC replacement with a term of 20-25 years.

Energy renewables such as solar panel, wind turbines and battery storage and back up are C-PACE eligible improvements that often pay for themselves by virtue of energy generated by the powers of nature, promoting clean air environment. C-PACE can fund 100% of a renewable project and be combined with government rebates and tax incentives to drastically reduce or even completely offset their installation costs leaving behind a clean and more efficient property.

Weather and natural disaster conditions may include such items as seismic upgrades in earthquake zones around the country and wind mitigation improvements for hurricane prone locations. Not only do these upgrades keep people safe, but they also bring the properties to updated code requirements and reduce insurance costs. In most earthquake prone areas, CastleGreen Finance / C-PACE may finance seismic related building elements of a new construction, even if the building is simply built to their applicable seismic building code requirements.

development project
C-PACE financing
energy efficiencies
C-PACE partnership

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Why partner with CastleGreen Finance?

CastleGreen brings all our resources to create a capital structure to help our clients unlock the potential of their real estate.

Experience

Leadership in CastleGreen Finance brings over 75 years of experience in commercial real estate to the table across a broad range of financing disciplines. The extensive real estate experience combined with its core C-PACE capabilities provides our clients with the knowledge and resources to create a capital stack to most effectively fulfill its needs.

Integrity

The CastleGreen Finance philosophy is a simple one. We tell our clients what we can do and then we simply do it. We are not only focused on a single deal, but are dedicated to building a lasting relationship for years to come.

Reliability

CastleGreen Finance understands that the most important part of any real estate transaction is showing up with the capital at closing. Our team focuses on the details of every deal to ensure that we completely understand what is necessary to help get our clients to the finish line.