Understanding C-PACE Financing and How Hillmann Supports Smarter, More Efficient Development

As energy regulations tighten and construction costs rise, developers and property owners are looking for smarter ways to fund high-performance buildings. They want to strengthen projects without overburdening the capital stack.

One financing solution gaining traction nationwide is Commercial Property Assessed Clean Energy (C-PACE), often referred to as PACE financing within the commercial real estate sector. Hillmann’s expanded Energy Services help clients navigate this opportunity with clarity and confidence.

Whether you are planning new construction, repositioning an asset, or evaluating energy upgrades, understanding how C-PACE financing works can open new paths to project feasibility, long-term value, and improved building performance.

What Is C-PACE Financing?

C-PACE (Commercial Property Assessed Clean Energy) is a long-term financing mechanism for commercial properties. It allows owners to fund energy efficiency, renewable energy, water conservation, and resiliency improvements through a property-based assessment.

Instead of a traditional loan, repayment is made through a special assessment added to the property tax bill. Terms often range from 20 to 30 years. Because the financing is tied to the property, it typically transfers upon sale. As a result, C-PACE can be attractive to both developers and long-term owners.

C-PACE can be applied to:

• New construction projects
• Major renovations and repositioning
• Energy and building system upgrades
• Resiliency and electrification improvements

Eligible property types commonly include multifamily, mixed-use, office, industrial, hospitality, and other commercial assets.

Why Developers and Owners Are Turning to C-PACE

C-PACE financing is increasingly being integrated into capital stacks because it offers several strategic advantages:

Improved Capital Stack Efficiency

C-PACE can reduce reliance on higher-cost mezzanine debt or additional equity by financing a significant portion of eligible project costs — often up to 100% of the energy and resiliency scope.

Long-Term, Fixed-Rate Structure

Terms typically align with the useful life of building improvements, helping to lower annual payments and support stronger project cash flow and debt service coverage.

Enhanced Project Feasibility

For many projects, incorporating C-PACE can make the difference between a project that struggles to pencil and one that moves forward confidently.

Support for High-Performance Buildings

C-PACE encourages investment in:

• High-efficiency HVAC and building systems
• Building envelope improvements
• Solar and renewable energy installations
• Water conservation measures
• Resiliency and electrification upgrades

These improvements not only support sustainability goals but also improve asset value and long-term operating performance.

Hillmann’s Expanded Energy Services: Supporting C-PACE from Strategy Through Completion

Successfully incorporating C-PACE into a project requires technical validation, detailed documentation, and coordination across lenders, engineers, and program administrators. Hillmann’s integrated Energy Services team provides the multidisciplinary expertise needed to guide projects from early evaluation through construction.

Early-Stage Feasibility and Strategy

Engaging Hillmann early allows developers and owners to:

• Identify C-PACE-eligible improvements during design
• Evaluate potential financing benefits
• Align energy strategies with overall capital stack planning
• Coordinate with lenders and capital providers

Early planning ensures that energy improvements support both performance and profitability.

Energy Modeling and Technical Validation

C-PACE programs require engineering analysis and documentation demonstrating projected energy savings and performance. Hillmann provides:

• Energy audits and modeling
• Scope validation and optimization
• Engineering documentation for program submission
• Coordination with design and MEP teams

We ensure all technical requirements are met while aligning improvements with real-world construction and operational goals.

Due Diligence and Risk Management

Hillmann’s environmental, engineering, and building sciences professionals support projects with:

• Property Condition Assessments
• Environmental Site Assessments (Phase I/II)
• Building systems evaluations

These services help ensure projects meet financing and regulatory requirements while minimizing risk.

Construction and Implementation Support

Once financing is secured and construction begins, Hillmann continues to support project execution through:

• Owner’s representation and project monitoring
• Draw review and progress verification
• Coordination with lenders and C-PACE administrators
• Documentation and compliance support

This end-to-end approach helps keep projects on schedule and aligned with financing requirements.

National Reach. Integrated Expertise.

Hillmann supports developers and property owners nationwide through a multidisciplinary platform that integrates:

• Energy consulting and engineering
• Environmental and building sciences
• Due diligence and compliance
• Construction risk management and advisory

As a result, clients can work with a single, trusted partner from concept through completion.

When to Engage Hillmann

Hillmann’s Energy Services team can add value at any stage. However, early engagement delivers the greatest strategic benefit.

Consider reaching out if you are:

• Evaluating C-PACE financing for an upcoming project
• Planning new construction or major renovation
• Exploring electrification or decarbonization strategies
• Seeking to improve project feasibility and returns
• Navigating evolving energy and building regulations

Supporting Smarter, More Efficient Development

C-PACE is changing how high-performance buildings are financed and delivered. With the right strategy and technical partner, developers and owners can strengthen project economics while improving building performance and resilience.

Hillmann’s expanded Energy Services help clients move forward with confidence by aligning financing, engineering, and construction expertise.

Resources

U.S. Department of Energy | Commercial Property Assessed Clean Energy (PACE) Toolkit: Overview

PACENation | PACE Programs