DigniCare is connecting developers with PACE lenders to continue the development of projects that have been denied funding as a result of rising funding costs.
MINNEAPOLIS , MINNESOTA , UNITED STATES, June 3, 2021 /EINPresswire.com/ — In the wake of the pandemic and rising material costs, DigniCare Senior Consulting is working to help developers find the funding they need to continue and start projects to advance better senior living. Building material costs, supply chain disruptions, labor shortages and rising interest rates have caught even the most conservative construction budgets and project managers by surprise in the last 12 months.
Connecting developers with PACE energy lenders, DigniCare helps developers who have found themselves denied funding or suddenly with funding that have been restructured or short-funded.
“We have used PACE energy lending in multiple projects to enhance owner equity in the capital stack of the overall equity/debt structure of the project. The PACE loan is attractive because it counts as equity, not debt in the overall LTV calculations and is paid back through the real estate taxes as an assessment to the value of the improvements to the project. We also work with owners to design financing techniques to maximize deprecation benefits and minimize tax exposure ,” explains DigniCare founder Brian Winges.
PACE energy funds are loans of $250,000-$20,000,000 and can be used in retail, hospitality, restaurant, housing, multi-family, office, commercial and industrial construction. Improvements. The loan covers building envelope installments (windows, insulation), boilers and furnaces, automated controls, heat and power systems, pumps and fans, water conservation systems, vehicle charging stations, one site energy storage, wind energy, roof replacement and upgrades, high efficiency lighting, solar power, HVAC upgrades and efficiencies, hot water heating systems and upgrades and other energy saving systems.
“Most real estate developers do not realize that PACE funds have a lower cost of funds than mezzanine debt and/or equity,” says Winges. “The loans allow us to progress on projects that desperately need to continue—refurbishing, new health facilities, and better buildings that can prevent many of the issues we saw in assisted living facilities during the pandemic.”
PACE loans can be cash flow positive as the reduced utilities and operating expenses often outweigh the increased property tax. A PACE loan provides equity and promotes energy efficiency and renewable energy facilitating energy improvements that are cost effective over time.
Learn more about PACE energy loans, 1031 exchanges, cost segregation studies, accelerated depreciation and other financing and development techniques here or by contacting Brian Winges.
DigniCare Senior Consulting is a health focused senior care company that helps seniors and their families find the best care possible. DigniCare has been involved in the development, design, and operation of assisted living facilities across the Midwest since 1997. Led by senior living expert Brian Winges, the company is committed to implementing the necessary standards to ensure the advancement of quality care networks for seniors. Brian and DIgniCare are currently working on the first accessory dwelling units built specifically for senior to age in place with Built4Safer Living
Brian Winges; email@example.com