Benefits of CPACE Financing
Contributors
Commercial developers and property owners can use CPACE financing to fill the gap in their capital stack or replace more expensive forms of capital. CPACE can significantly impact lowering a borrower's weighted average cost of capital.
CPACE offers other compelling benefits, such as:
- Non-recourse and transferable
- Low-cost alternative to mezzanine debt or equity starting at 7.0%
- No principal repayment required upon sale
- Funding for up to 35% of the appraised property value (varies by state)
- Funding for up to a combined LTV of 95% (CPACE + senior)
- Up to 30-year fixed-rate funding
- Ability to delay first payment until after stabilization (up to three years after the funding date)
- CPACE payments are secured by the property and are repaid through a special tax assessment
- Ability to pass through tax assessment to tenants or hotel guests
Learn more about CPACE Financing or contact the Peachtree CPACE team.
Click here for current loan rates.
