Petrospectives

How C-PACE Financing Powers Ground-Up Construction

Posted by Petros on October 1, 2025

By Petros PACE

C-PACE can be used to fund ground-up construction.
Here’s how.

Flexible Structure
C-PACE financing is adaptable to a variety of business plans and exit strategies. It offers several possible structures, including construction-to-permanent financing, short-duration bridge style executions, and long-term amortizations of up to 30 years — and is non-recourse upon certificate of occupancy.

Lower Weighted Average Cost of Capital (WACC)
By replacing higher-cost capital sources with lower-cost C-PACE financing, developers can reduce the overall WACC for the project, improving returns and project feasibility.

Expedited Closing Process
With an efficient underwriting and approval process, C-PACE financing can close in as fast as 45-60 days in parallel with senior debt, helping developers stay on schedule and avoid project delays.

Tranched Disbursement of Committed Funds
Our platform allows C-PACE funds to be advanced in multiple tranches during construction, lining up with anticipated cost outlays and helping to mitigate capitalized interest and reduce negative carry on the overall capital stack.

Funding Solution for State and Local Efficiency Mandates
C-PACE is a key financing tool that helps building owners fund efficiency upgrades required by commercial building performance standards (BPS) in states such as Colorado, Maryland, Washington, and Oregon, as well as sustainability mandates like Local Law 97 in New York City.

Transferability Upon Sale or Refinance
The C-PACE assessment stays with the property, not the borrower, offering flexibility for early exits or recapitalizations with minimal or zero prepayment penalties.