PACE Equity

PACE Equity is a direct capital provider for Commercial Property Assessed Clean Energy (C-PACE) financing, which is used for energy efficiency, renewable energy, and water conservation upgrades in commercial buildings. The company provides funding for new construction, gut rehabilitations, and retroactive refinancing for projects completed within the last three years. PACE Equity’s financing is long-term, fixed-rate, and non-recourse, covering up to 30% of the capital stack. The company operates in states with C-PACE-enabling legislation and serves various commercial sectors, including hospitality, multifamily, office, industrial, and retail.

Founded in Milwaukee, Wisconsin, by Beau Engman, PACE Equity has operated for over a decade, funding its first C-PACE project in Wisconsin in 2014. Since its inception, the company has invested over $820 million in more than 175 projects, facilitating over $6.3 billion in energy-efficient commercial development. In 2024, Aquarian Holdings acquired a majority stake in PACE Equity, providing up to $1 billion in financing to help the firm scale its operations. The business model involves an end-to-end process that includes an in-house team of energy engineers, financial analysts, and attorneys who manage the 87 steps of C-PACE execution. This team optimizes funding potential and provides guidance for projects to qualify for lower interest rates through options like the CIRRUS Low Carbon financing program for buildings with reduced carbon designs.

Repayment of the financing is structured as a special assessment on the property's tax bill over a term of up to 30 years, which attaches to the property and transfers to a new owner upon sale. This structure allows property owners to fund improvements with no upfront cost and can replace more expensive capital like mezzanine debt. The company has a 100% delivery record on its funding commitments.

Keywords: C-PACE financing, commercial real estate, energy efficiency financing, renewable energy projects, property assessed clean energy, construction financing, real estate development, sustainable projects, low-carbon buildings, retroactive refinancing, capital stack, non-recourse loans, fixed-rate financing, development funding, green building, energy retrofits, water conservation, commercial construction, senior housing financing, hospitality financing