Pace Power Stack Explained
K2CF offers Developers the PACE POWER STACK combining PACE financing and “PACE-Friendly” construction debt for all new construction projects. This provides an optimized and complete capital stack solution from unified experts on both PACE & debt financing.
The PACE Power Stack simplifies the financing process for developers and can increase total leverage up to 85% and can lower the overall cost of capital especially when utilizing non-recourse loans.
Mezzanine debt or preferred equity can be excised from the equation for retrofits, upgrades, new construction and other renewable energy efficient upgrades, including but not limited to solar.
Total Leverage (LTC) Up to 85% with PACE
Lower Overall Capital For Projects
Normal financing blended with mezzanine debt or preferred equity can see a blended rate of 8.25% in today’s prevailing rates. PACE financing, instead of the typical 12-14% financing, can come in at 5-6% to give developers, builders and owners a blended rate of 6.625%. This the PACE POWER STACK solution. It results in better costs and benefits.