X-Caliber’s Rural PACE-X Financing for Micro-Rural Areas

Providing a Unique, Cost-Effective Capital Solution Only the X-Caliber Platforms Can Execute

X-Caliber is offering a very effective capital solution for ground-up construction projects located in “micro-rural areas” by combining and leveraging its bridge and Commercial Property Assessed Clean Energy (C-PACE) platforms.

A micro-rural area is generally described as an area with a population of less than 20,000 and is not part of a Metropolitan Statistical Area.

Financing is available for a wide variety of projects including, but not limited to, hospitality, manufacturing, office, warehouse and logistics, flex, retail, mixed-use, multifamily, and public works projects.

X-Caliber’s deep expertise in bridge, rural lending, and C-PACE delivers efficient financing with certainty of execution for projects located in very rural areas.

Geography

All projects must be located in eligible micro-rural areas in states with active C-PACE programs (for higher loan-to-cost requests). Please contact your X-Caliber or CastleGreen Finance representative to confirm eligibility.

Use of Funds

Applicable for ground-up construction projects only; funds are intended to provide construction-through-stabilization financing of up to 5 years.

Property Types

Most property types qualify, including hospitality, manufacturing, office, medical, senior care, warehouse and logistics, flex, retail, mixed-use, and multifamily

Minimum Funding Amount

$10MM senior loan; $5MM C-PACE

Loan To Cost

75% – 85%, depending on scope of C-PACE program in each jurisdiction

Minimum Project Size (Construction Component Only)

$20MM or greater; no maximum size

Minimum Term

The later of two years or completion of construction

Maximum Term

Senior financing three years plus two, one-year extensions; C-PACE up to 25 years

Due Diligence

All third-party reports must be received prior to funding, including a feasibility report, appraisal, and Phase 1 site inspection. Other required items include a business plan and projections, an energy audit, and approved designs and permits from the local municipality. When bridging to USDA, an applicable NEPA report must have been completed.

Funding Availability

Only projects that are ‘shovel ready’ are eligible; predevelopment funding is not an allowed use of funds; all project equity must be available and will be used prior to funding by the lender.

Loan Closing Proceeds

The loan closing proceeds will generally include all loan soft costs, including legal fees; the C-PACE assessment will be fully advanced into a control account at closing; a portion of the senior loan will be fully advanced into a control account at closing with the remainder funded as needed.

Borrower Deposit

Sufficient to order all third-party reports; at time of conditional loan approval, applicant will be required to make a second deposit for loan related legal expenses.

Reimbursement

Reimbursement of previously paid construction costs may be eligible.

Interest Rates

Senior loan: Similar to bank construction financing

C-PACE: 10-Year Treasury plus a spread commensurate with the C-PACE market

Capital Stack Example

X-Caliber Senior Loan	$ 50MM
CastleGreen Commercial PACE	$ 25MM
Project Equity	$ 25MM
Total Project Costs	$100MM

For more information, reach out to us at info@x-caliber.com.

About X-Caliber Capital Holdings

X-Caliber is a nationally recognized commercial real estate finance franchise whose affiliate companies provide direct mortgage lending, servicing, advisory, and investment opportunities. Our diverse and growing lending and investment entities support and leverage our expansive and innovative lending platforms that offer FHA, bridge, USDA, and C-PACE financing.

CastleGreen Finance is an affiliate of X-Caliber Capital Holdings, embraces the collaboration of commercial real estate construction along with a green energy and carbon emission reduction strategy by providing property owners with the financing tools needed to create and redevelop clean, sustainable, energy-efficient real estate through a superior capital stack.