The largest announced C-PACE project to fund in the U.S. during 2018.
AUSTIN, Texas, Dec. 21, 2018 /PRNewswire/ — Petros PACE Finance, LLC (www.petros-pace.com) announced today the closing of a $24.9 million Commercial Property Assessed Clean Energy (C-PACE) transaction in in Omaha, Nebraska with Shamrock Development, Inc., an Omaha-based development company chosen by the Metropolitan and Convention Authority to redevelop the two-block site as part of an urban renewal effort for downtown Omaha.
The project will fund C-PACE eligible upgrades for the $205 million mixed-use development called the Capitol District. The development includes a 333-room Marriott hotel, a 223-unit apartment building, and 90,000 square feet of retail space. The project will consist of significant energy efficiency measures that will generate substantial savings over the 22-year terms of financing. C-PACE was a natural complement to the capital stack that also included multiple senior lenders, an EB-5 mezzanine tranche, and a Tax Increment Financing component. The City of Omaha administered the C-PACE financing for the Eastern Nebraska Clean Energy Assessment District (ENCEAD).
“It was great working with the Petros PACE Finance team. Their experience handling large C-PACE transactions is unparalleled. The PACE financing solution will provide long-term stability for our capital stack, and it pays us back for a significant investment in energy efficiency throughout the Capitol District,” said Mike Moylan, president of Shamrock Development.
“This is an exciting time for C-PACE. We are at an inflection point where developers realize the substantial value and efficiencies C-PACE brings to their capital stack,” said Petros PACE Finance CEO Mansoor Ghori. “Additionally, the energy savings achieved through these improvements can be substantial, as they were for the Capitol District. We’re pleased to be involved in this project with Mike and his team at Shamrock.”
Last month, Petros PACE Finance announced that it had secured a multi-billion-dollar capital commitment from institutional investor partners for funding C-PACE transactions nationwide. The capital commitment enables Petros PACE Finance to fund massive new construction and gut rehab projects nationally and, most importantly, provides property owners and developers certainty of close on projects financed by Petros PACE Finance.
“We uniquely structured this financing to provide credit enhancement, optimal pricing and significant long-term capital for a strategic Omaha asset,” said Rob Shear, CEO of PACE Sage Capital, a leading C-PACE financing originator in the Midwest.
This is the largest publicly-announced C-PACE transaction in the country to date in 2018. The second largest was a $16.3 million transaction in Columbus, Ohio that was also funded by Petros PACE Finance and closed last week.
Founded in 2013, Petros PACE Finance has dedicated all of its resources to providing long-term C-PACE financing to commercial property owners and developers across the country and has completed C-PACE financing transactions in 11 states, including the District of Columbia.
C-PACE is a long-term, fixed-rate financing product that is secured as a parcel tax assessment and solves many problems that have historically prevented commercial property owners from investing in energy efficiency retrofits or renewable energy retrofits. Legislatively approved in 36 states, C-PACE financing can also be utilized by developers to replace expensive mezzanine debt or equity in their new construction and redevelopment projects. Petros PACE Finance provides property owners and developers with the low-cost upfront capital for these projects.
SOURCE: Petros PACE Finance, LLC