Green Loans and C-PACE Financing in Commercial Real Estate: Loan Structures, Principles, Guidelines
Alternative Financing to Meet Increasing Sustainability Standards for New Construction and Renovation Projects
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will explore the recent growth and trends in green lending in commercial real estate and how commercial property owners are using this alternative form of financing in today's challenging market to meet increased sustainability standards. The panel will discuss commercial property assessed clean energy (C-PACE) financing structures and other types of green loans available for both new and existing structures and provide an overview of the market principles and guidelines that allow a loan or project to be categorized as "green."
Outline
- Overview: trends in local legislation requiring decarbonization and sustainability measures for commercial buildings
- Green loans
- Definition
- Role green loans play in today's real estate financing market
- LMA, APLMA, and LSTA's GLP and Guidance
- Four components of a green loan: use of proceeds, process for project evaluation and selection, management of proceeds, and reporting
- C-PACE financing
- Uses for C-PACE financing
- How C-PACE financing is secured
- Advantages
- Layered with other forms of financing
- Other forms of green financing available for new construction and renovation projects to meet new building standards and requirements by local and state governments
- Key takeaways
Benefits
The panel will review these and other relevant considerations:
- What are green loans?
- What are the LMA, APLMA, and LSTA's GLP and guidelines?
- What is the typical C-PACE program structure and what are the benefits of this type of financing?
- What types of projects are generally eligible for green loans and C-PACE financing?
Faculty
Abby Johnson
President and CEO
Virginia PACE Authority
Ms. Johnson is Executive Director and founder of the Virginia PACE Authority (VPA) and President of Abacus Property... | Read More
Ms. Johnson is Executive Director and founder of the Virginia PACE Authority (VPA) and President of Abacus Property Solutions (Abacus). Since 2012, she has specialized in PACE financing, advising commercial building owners, lenders and public sector clients in PACE project and program development. Ms. Johnson has been instrumental in developing PACE programs around the country through crafting of PACE legislation, creating program guidelines, and launching and administering PACE programs. In her capacity as an advisor, she works with building owners to develop “PACE-able” projects, structure PACE within the capital stack, and source senior debt as needed.
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Carrie Hallberg O'Malley
Partner, Chair Commercial Real Estate Finance and Investment Practice Group
Hirschler Fleischer
Ms. O’Malley leads the firm’s multidisciplinary commercial PACE (C-PACE) team, which to date, claims... | Read More
Ms. O’Malley leads the firm’s multidisciplinary commercial PACE (C-PACE) team, which to date, claims national C-PACE experience in 15 of the 29 states with active C-PACE programs, plus the District of Columbia. She is widely recognized nationally for her contributions to the C-PACE field and actively participates in the development of the Virginia C-PACE market. Ms. O’Malley provides guidance to C-PACE capital providers and property owners on all aspects of a C-PACE deal, including financing structures, real estate due diligence, negotiation, and compliance matters. With extensive knowledge of C-PACE in various jurisdictions, she is a valuable advisor for local governments and program administrators throughout the lifecycle of C-PACE projects. Notably, Ms. O’Malley was involved in several C-PACE funding “firsts:” the first C-PACE-funded office construction project in the United States; the first new construction C-PACE transaction in the District of Columbia; and the first rated, C-PACE securitization in the country.
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