Lower cost of capital

increased property Value

Expanded Investor Appeal

Whether a commercial real estate developer contemplating an acquisition and renovation effort or a building owner planning a major overhaul involving substantial new investment, the Sunsign PACE Program can lower the overall project cost while enabling otherwise unreachable property improvements.

Whether a commercial real estate developer contemplating an acquisition and renovation effort or a building owner planning a major overhaul involving substantial new investment, the Sunsign PACE Program can lower the overall project cost while enabling otherwise unreachable property improvements.

  • Lower Cost of Capital
    • PACE financing replaces or reduces expensive equity investment or mezzanine debt with lower cost and less risky alternative
    • Lower payments due to longer term
    • Fixed rates
    • No payments for a year
  • Fully Non-Recourse
  • No Financial Covenants
  • No Reporting Requirements
  • Covers up to 20% of the Capital Stack
    • Pull out those portions of the development that involve more efficient infrastructure, such as lighting, HVAC, roofing, windows, BMS/EMS, etc.
    • Include high visibility projects such as solar that would not have been economical otherwise
Contact Us
Block
Dramatic differentiation between property development financing options

Capital Stack Comparison
Rate Max CLTV Recourse Financial Covenants Reporting Requirements
Typical Mezz Debt 7 – 12% 80 – 85% Yes Yes Yes
Typical Preferred Equity 15% + 90 – 95% Yes Yes Yes
Sunsign PACE 5 – 7% 100% No No No
Block
And the impact on project financials can be substantial

WACC Comparison
Typical Financing Sunsign PACE
% of Capital Stack Interest Rate % of Capital Stack Interest Rate
Equity 10% 15% 5% 15%
Mezz Debt 15% 10% 0% 10%
First Mortgage 75% 5% 75% 5%
PACE — — 20% 6%
WACC 100% 6.75% 100% 5.70%
Block
Which has meaningful repercussions over the life of the property
pie_chart
1.0%
Capital Cost Savings Per Annum
attach_money
$0,000
Annual Savings
show_chart
$2,0,000
Savings Over 10-Year Period
$20M Commercial Property Example

The Sunsign PACE Program also increases property values through:

Higher cash flows resulting from lower operating costs

Faster leasing and better tenant satisfaction and retention

Addition of a sustainability marketing angle to the property

By developing a more sustainability-conscious commercial real estate project, investor appetite should expand due to the rapidly escalating interest in socially and environmentally impactful real estate projects.

Block
Regardless of future operating cost reductions and increased marketing appeal, ultimately the lower cost of capital is hard to ignore.

$25 million building upgrade example:

 

Contact Us

To determine if you qualify for the Sunsign Program, check out in what states commercial PACE is available, and then click here or fill out the form below and let us know about your building or project under consideration, and we will respond promptly.

info@sunsignservices.com

PRIVACY POLICY | TERMS & CONDITIONS

© 2023 SUNSIGN SERVICES. ALL RIGHTS RESERVED