Eyzenberg & Company has announced a partnership with Greenworks Lending (Greenworks), the country’s largest provider of C-PACE financing.
The commercial real estate investment bank will expand its capital solutions offerings with the launch of Eyzenberg Green Capital, which is dedicated to Commercial Property Assessed Clean Energy (C-PACE) finance.
C-PACE is a government-approved low-cost, long-term, non-recourse capital solution for commercial real estate transactions including sustainable new construction, gut renovations and value-add acquisitions.
Authorized by state statute and local ordinances, it is used to finance 100 percent of eligible hard and soft costs for a project.
Unlike traditional senior or mezzanine loans, it is secured by a special assessment against the property. Repayment of the assessment financing is done via the building owner’s property tax bill with payments due concurrent with ordinary property tax payments.
To date, 38 states and the District of Columbia have passed legislation to allow the use of C-PACE financing.
“Our partnership with Greenworks will position Eyzenberg Green Capital as a leader in the emerging sector, with the ability to quickly execute a complete capital stack,” said David Eyzenberg, principal and founder, Eyzenberg & Company. “The C-PACE loan platform has become a game-changer for building owners and operators.”
Greenworks has pioneered the successful use of C-PACE financing with policy experts who are experienced in processing and closing agreements with lenders and local Program Administrators while Eyzenberg & Company has become one of the fastest-growing real estate capital advisory firms in the U.S. through its ability to fully capitalize projects of any scale.
Eyzenberg Green Capital can obtain all requisite lender consents, structure and arrange all other monies necessary to fully capitalize any project in tandem with C-PACE, according to Eyzenberg. “It was important for us to approach the issue as a capital provider rather than an intermediary due to the nuanced legislative requirements that set C-PACE apart from other capital structures,” said Eyzenberg.
“Our partnership with Greenworks fits well with our ground lease capital proprietary offering and further enhances Eyzenberg & Company’s ability to structure an entire capital stack for borrowers through the lifecycle of a project.”
He added, “Greenworks has been at the forefront of the C-PACE sector. Its expertise on the legislative side of the transaction, as well as its captive low-cost funding capacity, positions our partnership to meet what we expect to be accelerated demand for alternative financing solutions.”
Alexandra Cooley, co-founder and chief operating officer of Greenworks Lending, said, “Greenworks sought out a partnership with Eyzenberg & Company specifically due to its market-leading, innovative capital structuring expertise and strong track record with development financing.
“Together, we look forward to easing the burden on commercial real estate owners working to meet ambitious climate targets with a smart financial product that allows more building owners to take the steps required to reduce greenhouse gas emissions.”