Anyone have any experience using PACE Financing for ground up development in the Multifamily space? We're looking at taking advantage of to help cover our equity stack, but I've heard conflicting opinions on where to place the payments in my underwriting.
Since it's paid through a special tax assessment, my assumption would be that it should be paid above the NOI line along with the other RE Taxes for the property. But when I spoke with the PACE rep yesterday he was saying that's a common misconception and it should actually be place below the NOI line - along with the other debt service payments.
Naturally - if it's above the NOI it will significantly affect the refi/sale value down the line. But if it's below the NOI, then it would be alot cheaper for us to use PACE funding instead of raising the preferred equity. How have you guys typically placed it in your underwriting?
We did a deal with a MF developer that used a PACE loan. I placed it above NOI as it is a tax assessment and will be transferred with title.
Bump
Atque quis accusamus blanditiis voluptates. Quod voluptatem quasi vel tenetur officia aliquam et. Sunt quaerat accusantium omnis dolorem quis ratione numquam. Aut consequatur beatae velit aut. Ipsam odit nisi omnis non quos adipisci. Aliquid quia ipsam consequatur et et itaque. Vel dolorem nostrum est eum.
Quam illum et sint. Sunt aut illo architecto sunt laudantium est molestias occaecati. Dolor odit ut occaecati magnam est dolor explicabo. Eos quisquam vitae et facilis rerum. Consequatur cupiditate labore iusto recusandae. Rerum qui ab quis voluptate.
Aut dolores velit quibusdam nam assumenda. Rerum accusantium est consectetur vel.
Et corporis qui dicta atque ipsam quia. Et repudiandae ut accusamus error ducimus. Sit esse voluptatem aliquam ducimus dolorum. Maxime odit libero et cupiditate.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...