​Previously considered somewhat difficult to deploy in ways that made sense to borrowers, C-PACE financing has emerged as "a new champion" to provide some rate relief and, in some circumstances, provide leverage that is otherwise unattainable, particularly for construction and construction take-out bridge financing, according to a new report from Marcus & Millichap.

Commercial Property Assessed Clean Energy (C-PACE) can help to fill the gap in the lending markets previously saturated with non-recourse banks, money center banks, and regional banks by providing fixed-rate and long-term financing through a state policy-enabled channel.

Nuveen describes it as financing that allows building owners and developers to access the capital they need to make energy-related deferred maintenance upgrades in their existing buildings, support new construction costs, and make renewable energy accessible and cost-effective.