C-PACE in Tennessee: status, market and providers

C-PACE in Tennessee

C-PACER is local-option under Tennessee's 2021 enabling law (HB 667) — there is no single statewide administrator, and Davidson County (Nashville), Knox County and Chattanooga/Hamilton County each run their own program. Closings remain few, but include the first delayed-draw C-PACE financing in Tennessee history.

Verified 2026-09-16

Who administers C-PACE in Tennessee

Tennessee has more than one program administrator. That matters more than it sounds — the same project can sometimes be run through either, and their rules, fees and turnaround are not identical.

Every C-PACE closing we can document in Tennessee

No one publishes a cumulative total for Tennessee, so this is built the other way round — from individual closings, each traced to a named source. It is the complete public record as far as we can establish it, which is not the same as the complete record.

Date	Property	Amount	Capital provider
5 August 2025	Retail building leased to M.L. Rose Craft Beer & Burger (Inglewood), Nashville Retroactive C-PACE financing recapitalizing a gut rehab of an 80-plus-year-old retail structure, closed under the Davidson County C-PACER Program via Allectrify's FASTPACE platform. Property owned by A. Ray Hospitality.	$1.7M	Amalgamated Bank source
14 April 2026	The Pike, 1411–1413 Dickerson Pike, Nashville First delayed-draw C-PACE financing in Tennessee history, paired with a $25M senior loan from Old National Bank for a ground-up 208-unit multifamily development by Aria Development Group and Wedgewood Avenue.	$13.8M	North Bridge source
Documented total — a floor, not a program total		$15.5M	2 properties

Verified 2026-09-16 against Nashville C-PACER program materials and the capital providers' own closing announcements. If you know of a closing missing from this table, tell us — we would rather the record were right than flattering.

How to check your specific property

C-PACE availability is decided locally even when the enabling law is statewide. Work through these in order — each one can end the enquiry, so doing them out of order wastes time.

Jurisdiction. Confirm the county or municipality has opted into the program. Statewide authorisation is not the same as local adoption.
Eligible scope. Establish which parts of your project qualify — energy, water and resiliency measures, and in many states new construction and a look-back on recently completed work.
Senior lender consent. Ask your mortgage holder early. This is the step that most often decides the timeline.
Assessment mechanics. Understand how the assessment appears on the tax bill and how it is handled at closing when the property sells.

Is C-PACE the right tool for this project?

C-PACE solves a specific problem: long-term, fixed-cost capital for improvements to a building, secured by the property rather than by you. It is not a substitute for working capital and it is not fast money. Where it is strongest:

Hotel and multifamily renovations where the capital stack is already tight
Office-to-residential and other adaptive reuse conversions
New construction where C-PACE fills the gap between senior debt and equity
Owners who expect to sell before a conventional loan would amortize
Deferred maintenance that a bank will not lend against

If your project does not fit that shape, the honest answer may be a different program — or none of them yet. USDA B&I covers rural projects with terms up to 40 years, and SBA 504 covers owner-occupied real estate and equipment. Our C-PACE versus bridge loan comparison covers the case where the two are used together rather than as alternatives.

C-PACE in Tennessee: common questions

Is C-PACE available in Tennessee?

Yes — Tennessee has an active C-PACE program, administered through 3 programs. Availability inside the state is usually decided jurisdiction by jurisdiction, so the property's county or city must also have opted in. Confirm the specific address with the program administrator before assuming coverage.

How much C-PACE has been done in Tennessee?

At least $15.5M across 2 properties and 2 separate closings, through 14 April 2026. That is a floor rather than a total: no programme in Tennessee publishes a cumulative figure, so we built this from individual closings that each trace to a named public source, and an unannounced deal would not appear in it. The largest single assessment on the record is $13.8M.

Does my mortgage lender have to consent to C-PACE in Tennessee?

In most programs, yes. The C-PACE assessment sits ahead of the mortgage in payment priority, so the senior lender is normally asked to consent in writing. Many commercial mortgage lenders now approve C-PACE routinely, but the consent conversation takes time and is the most common reason a deal stalls. Start it early.

What happens to the C-PACE assessment if I sell the property in Tennessee?

The assessment runs with the property. When the building sells, the remaining payments transfer to the buyer along with the improvements they funded. This is the structural feature that makes a 30-year term sensible for an owner who plans to exit in five.