PACE financing is an ideal replacement for mezzanine financing or equity debt. C-PACE will reduce your project's capital cost and offer longer-term solutions for construction debt in a wide range of industries.
Mezzanine financing vs. C-PACE
Mezzanine debt arrangements typically:
- Span three to five years
Discover how C-PACE financing offers lower rates and longer terms than mezzanine debt or preferred equity.
- Carry interest rates between 10% and 14% or higher
- Require a balloon payment of interest and monthly payments by borrowers
By contrast, PACE financing arrangements:
- Are available for up to 30 years
- Generally feature interest rates starting at 6.00%
- Are non-recourse
PACE funding arrangements also allow the pass-through of required payments to tenants, renters, or hotel guests and are paid annually or semi-annually. Depending on your requirements, you may also be able to delay your first payment by up to two years.
Commercial PACE Financing vs. Preferred Equity
C-PACE loans differ from preferred equity arrangements because they do not confer an equity investment in the company or entity that owns the property. Instead, PACE financing is designed to:
- Attach to the property itself
- Provide up to 35% of its value to fund construction projects that meet the minimum requirements
Learn more about C-PACE Financing or contact the Peachtree C-PACE team.
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