In this conversation, Jonathan talks with Ethan Elser with PACE Equity. PACE specializes in providing commercial real state financing through a public/ private partnership called C-PACE. With flexible capabilities and attractive terms, Jonathan and Ethan discuss the ins and outs of why PACE Equity might be able to be a part of the capital stack to your next deal. 

Ethan Elser, Sr. is the Executive Vice President and a principal of PACE Equity, the leading funding of CPACE for commercial real estate development projects in the country. PACE Equity is known for both pioneering several innovations in CPACE, including ground up construction, as well as providing its clients a turnkey solution for all the CPACE requirements.

Ethan oversees the company’s 25+ state origination platform and underwriting, sitting on the firm’s investment committee. He is responsible for the underwriting & structuring of all PACE Equity’s projects and collaborates with owners, developers, brokers, lenders and public officials. Prior to joining PACE Equity, Ethan managed a family real estate investment office and was an asset manager for receivership/REO portfolios for banks.

Connect with PACE Equity:
https://www.pace-equity.com/

Takeaways

• C-PACE financing is a financing tool that allows property owners to fund energy-efficient and renewable energy improvements through a voluntary assessment on their property tax bill.
• C-PACE financing can be used for a wide range of projects and improvements, including HVAC upgrades, solar panel installations, and energy-efficient lighting.
• Pace Equity offers a turnkey solution for C-PACE financing, providing underwriting, structuring, and origination services.
• C-PACE financing can be a flexible and attractive option for real estate investors, offering long-term, fixed-rate financing with no upfront costs.

Chapters

00:00
Introduction to Pace Equity and C-PACE Financing

06:48
Ethan's Background and Work at Pace Equity

07:15
Understanding C-PACE Financing

09:50
Types of Projects and Improvements Eligible for C-PACE Financing

14:09
Assets Eligible for C-PACE Financing

15:12
The Process of C-PACE Financing

20:47
Project Characteristics Unsuitable for C-PACE Financing

23:59
Pace Equity's Value Proposition

29:28
Case Study: Recent Interesting Deal

34:38
Opportunities for Bridge Lenders

35:08
Misunderstandings about C-PACE Financing

37:34
Conclusion and How to Learn More

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podcast@thesourcecre.com

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*Some or all of the show notes may have been generated using AI tools.