PACE loans are a great financing option for a wide range of industries. Whether you’re planning a new construction or an improvement project, you may be eligible for this innovative and low-cost financing. For example, PACE loans can benefit shopping malls in many different ways. Therefore, consider PACE funding for your upcoming projects.
How Malls Benefit from PACE Loans
Malls are generally large buildings, which means renovation costs can be quite high. Luckily, PACE financing covers many types of projects for your mall. For example, you can use this funding to improve resiliency and save on utility costs.
Can your mall stand up to a natural disaster? Many people may be inside your building when a disaster strikes. You can increase safety by improving your building’s resiliency. You can use PACE loans for a variety of these projects, including seismic retrofits, wind-resistant roofs and windows, and flood mitigation systems. These improvements can help prevent property damage, injuries, and system outages for your mall. PACE funding can help you perform these beneficial projects by providing low-cost funding that you repay on your property tax bill.
Projects and additions that can lower your utility bills may also qualify for PACE loans. You can use CPACE funding for things like insulation, water fixtures, and HVAC systems. This can help save you money in the long run. PACE loans are based on the value of your project. Therefore, almost every PACE approved project will pay for itself over the term of the loan. So, PACE loans can help you add features to your mall that can save you and your tenants in utility costs.
How Do PACE Loans Work for Retail Locations?
You may wonder what this means for your retail tenants. Generally, this all depends on the lease agreement you both signed. If your lease agreement requires tenants to pay a portion of the property tax bill, but excludes special assessments, then they aren’t responsible for the PACE financing repayment. However, if you used your PACE loans to save on utility bills and your tenants are the ones responsible for their utility bills, you may be able to create a lease amendment to help balance out PACE costs. Also, you’ll likely have to create an amendment requiring your tenants to maintain improved systems, such as heating and cooling, to ensure your PACE financing will pay for itself in long-term utility savings.
If you’re ready to get started on your PACE funding, the team at Stonehill PACE can help. We specialize in providing CPACE funding for a broad range of industries. Our experts can help walk you through the qualification process and process the necessary forms often without changing your project’s cost or scope. As a leading provider of PACE loans, we maintain close relationships with PACE program administrators, meaning you benefit from in-depth knowledge and a seamless qualification process. Contact us today to learn more about our PACE financing options and to discuss your needs with our professionals. We are here to serve you.