Petros PACE Finance Surpasses $1 Billion Milestone in Originations and Balance-Sheet Funded C-PACE Transactions Since Inception in 2016

Petros Projects Crossing $2 Billion Milestone in 2023 As Activity and Size of Transactions Accelerate

Broader Acceptance from Property Owners And Sustainability Tailwinds Transform C-PACE from Niche to Mainstream Financing Tool

Petros PACE Finance (Petros), the largest C-PACE provider in the country and a leader in innovative and structured finance, today announced that it has significantly eclipsed $1 billion in directly originated and balance-sheet funded C-PACE transactions since inception in 2016 and also expects to surpass the $2 billion mark of directly originated and funded C-PACE financings in calendar 2023, as awareness, activity and size of transactions accelerate rapidly.

Mansoor Ghori, CEO and co-founder of Petros PACE Finance stated, “Transcending the $1 billion threshold is an important milestone, not just for Petros, but for property owners, developers, sponsors and communities where we have been able to facilitate job growth, economic expansion and environmental stewardship.  What was once a niche financing mechanism is now becoming accepted across the country by some of the largest real estate owners and financial institutions as a mainstream and effective means to drive investment, achieve ESG goals and enhance cash flow across all commercial real estate asset types.

“The C-PACE industry is at a core inflection point, as the level of activity and size of transactions rapidly increase. As the industry leader, our success is testament to a number of core competitive differentiators:  deep and sustained owned relationships, a strong and flexible balance sheet, the certainty of close, an experienced and seasoned team and the technical skill to deliver innovative solutions for some of the most complex and esoteric real estate projects.  We look forward to the next year and beyond, as more developers and property owners see the value in enhanced cash flow, increased ROI and equally as important, the ability to build environmentally sustainable real estate assets increasingly demanded by state and local governments, tenants and consumers,” Mr. Ghori concluded.

Jim Stanislaus, CFO and co-founder of Petros PACE Finance said, “This meaningful accomplishment is a clear demonstration of our commitment to financial discipline, the impact and leverage derived from our strong and flexible balance sheet and our deep roots in structuring complex financing transactions.  Developers, property owners, sponsors, intermediaries and local and state officials all understand and appreciate our consistent promise of certainty to close, in any circumstance.  As the industry expands rapidly, driven by larger transactions, Petros will be able to capture market share as C-PACE financing assumes a larger role in capital stack.”

Last month, Petros announced it closed on an industry record $153 million C-PACE financing as part of the $820 million, 580-acre world-class development, Black Desert Resort Project in Ivins, Utah. The development is currently under construction and upon completion will be the largest mixed use and hospitality offering in the state of Utah.

Other significant Petros C-PACE funded projects include an $89 million transaction for the iconic 111 Wall Street building in lower Manhattan in June 2021.  This deal – which at the time was the single largest ever C-PACE transaction, was complete as part of New York City’s recently launched C-PACE program and part of New York City’s Climate Mobilization Act of 2019.

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Petros PACE Finance Closes Largest C-PACE Deal in History with $153 Million Financing Towards $820 Million Black Desert Resort Project

Petros PACE Finance (Petros), the largest C-PACE provider in the country and a leader in innovative and structured finance, today announced that it has closed on a record $153 million C-PACE financing as part of the $820 million, 580-acre world-class development, Black Desert Resort Project in Ivins, Utah. Located near Zion National Park in one of the fastest growing metropolitan areas in the country, Phase 1 of Black Desert Resort will include a luxury resort hotel, approximately 1,000 condos, 190,000 square feet of retail, restaurants, and commercial space, 25,000 square feet of event space, a full clubhouse, and a Tom Weiskopf-designed 19-hole golf course.

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C-PACE Financing Finds Solid Footing in the Capital Stack

This rapidly growing alternative funding method can help developers meet a wide range of goals.

New financing vehicles can take time to achieve market acceptance, but with more than $3 billion in transactions since its inception more than 10 years ago, Commercial Property-Assessed Clean Energy (C-PACE) funding is now a go-to green finance alternative for many owners, investors and developers.

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PACENation Announces 2022 PACE Champions, Chair’s Award and PACESetters

“Los Angeles, CA – PACENation, the national membership association for PACE financing, announced the recipients of the 2022 PACESetter Awards and honored two PACE Champions and the winner of the Chair’s Award for their distinguished leadership in the PACE marketplace. PACESetters were honored in several categories, including promoting diversity, equity, and inclusion in the PACE marketplace, program design & implementation, advocacy and policy innovation, innovative financial institutions, and innovative deals of the year.”

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How C-PACE Financing Is Powering Green Historic Renovations

“When Bud Liebler, a former Chrysler executive, purchased the historic Whitney Mansion in Detroit in 2007, the 22,000-square-foot (2044 sq m) granite structure—built as a lumber baron’s residence in 1894 and converted into a restaurant in the 1980s—had decorative stone carvings, a round tower with a conical roof, 20 fireplaces, and several stained-glass Tiffany windows. But the heating and cooling systems had aged badly, and cold air leaked through the structure’s 214 windows.”

Read more about how C-PACE was implemented to help restore the historic Whitney, one of Petros’ first projects.

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Petros PACE Finance awarded Deal-of-the-Year by C-PACE Alliance

C-PACE Alliance (CPA), the business association focused exclusively on clean energy and resiliency financing through Commercial Property Assessed Clean Energy (C-PACE) programs across the U.S., announced today the honorees of its C-PACE Alliance Awards for projects in six categories. C-PACE financing is an alternative form of financing that enable property owners to pay for energy-efficiency improvements and renewable energy equipment.

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Securitization Insight Ep 16: C-PACE, an innovative financing product that is poised to take off

Mansoor Ghori, Chief Executive Officer and Co-Founder of Petro Partners, joins Patrick Dolan to discuss Commercial Property Assessed Clean Energy (C-PACE) financing: what it is, why property owners and developers use it, where it is available and which asset types qualify. They also explore financing parameters for C-PACE, what we can expect from the C-PACE industry, and how environmental, social and governance (ESG) initiatives are driving growth in the C-PACE market.

Listen to the podcast on Apple PodcastsSpotify, or your preferred podcast app.”

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Petros PACE Closes First-Ever C-PACE Financing in Washington State for Energy & Resiliency Improvements at Historic Lodge at St. Edward State Park in Kenmore

KENMORE, Wash. (Feb. 28, 2022) – King County, Daniels Real Estate and Petros PACE Finance, LLC, the leading provider of Commercial Property Assessed Clean Energy (C-PACE) financing, announced today the closing of an $19 million transaction providing low-cost financing for key improvements at the iconic Lodge at St. Edward State Park in Kenmore, WA near Seattle. It is also the first C-PACE financing in Washington, opening the door for this innovative financing tool gaining popularity nationwide.

A historic landmark listed in the Washington Heritage Register and the National Register of Historic Places, the Lodge at St. Edward State Park offers 84 rooms, full-service spa, inspired bars and restaurant, convenient meeting and event spaces, all nestled amid a lush 326-acre forest a short walk from the shores of Lake Washington. Information on the building’s history and for making reservations is at www.thelodgeatstedward.com.

“The former seminary building had sat empty for over 40-years and it was estimated that it would cost over $15 million just to keep it from falling in on itself,” said Kevin Daniels, owner of the Lodge and Seattle-based Daniels Real Estate. “We had significant challenges in bringing the historic building back to use and enhancing the building with modern amenities and conveniences of a boutique Lodge. The C-PACER financing was instrumental in making it possible for energy related improvements and updated HVAC systems. It helped to preserve the historic building through a new reuse that enables park users and Lodge guests to enjoy this beautiful building inside and out.”

C-PACE is the broader term used nationally, and King County’s program, C-PACER, adds to the definition: Property-Assessed Clean Energy and Resiliency.

“C-PACER will help us create the innovative solutions our region needs to re-engineer the built environment to be more sustainable, energy-efficient, and prepared for climate impacts,” said King County Executive Dow Constantine. “King County will be one of the largest local governments in the nation where owners can access this innovative low-interest financing for climate and seismic upgrades of commercial and multi-family buildings.”

“Commercial property owners and developers across the State of Washington have been eager for C-PACE financing to become available, and we’re excited that this debut in King County will open the door for this innovative, trusted tool that’s operating in 32 states to date,” said Mansoor Ghori, CEO of Austin-based Petros PACE Finance, the leading national provider of C-PACE.

“This financing for the adaptive reuse of the Lodge at St. Edward State Park highlights C-PACE’s breadth and scope of uses. In addition, we are grateful to King County, Daniels Real Estate and others working on this important tool for sustainable development and reduction of greenhouse gas impacts,” said Andy Meyer, Managing Director of Originations at Petros PACE Finance.

Seen as a gamechanger in sustainable development finance, C-PACE is a long-term financing product secured by a property tax assessment that provides developers with a more affordable alternative to mezzanine debt and equity. In Washington, this low-cost funding can be used for qualifying seismic improvements, energy and water efficiency, renewable energy and energy storage, fire protection, flood readiness and similar work for hotel, office, retail, industrial, apartment, mixed-use and other commercial real estate. C-PACE will be available elsewhere in Washington as local jurisdictions develop administration programs.

Petros PACE and the project team also recognized key players laying the groundwork for King County’s program. “We want to thank the leadership of Rep. Davina Duerr and Senator Liz Lovelett, the original cosponsors of the C-PACER bill, who, along with Rep. Gerry Pollet, worked to get it to the finish line to enable jurisdictions like King County to approve this deal today,” said Ghori. “We look forward to working on many more projects throughout the state of Washington.”

About Petros PACE Finance
Petros PACE Finance, LLC is the national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values and meet environmental, social and governance (ESG) goals. Its leadership team has decades of executive-level experience in private credit and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.

 

SOURCE Petros PACE Finance, LLC

Originally published at Cision PR Newswire

Athene to Acquire Petros PACE Finance, a Leading Provider of Commercial Property Assessed Clean Energy (C-PACE) Financing

Athene Holding Ltd. (NYSE: ATH) (“Athene”), an industry-leading financial services company focused on retirement savings solutions, today announced it has entered into a definitive agreement to acquire Petros PACE Finance, LLC (“Petros PACE Finance” or the “Company”), a leading provider of Commercial Property Assessed Clean Energy (“C-PACE”) financing to owners and developers of commercial properties

Read the full article here to learn more. 

 

Nightingale, Wafra Capital Talk 111 Wall Street and C-PACE Financing

Elie Schwartz and Simon Singer’s Nightingale Properties first connected with Wafra Capital Partners and its vice president, Robert Rothschild, in 2017. Just over two years later, in July 2019, Nightingale and Wafra Capital, an investment arm under Kuwait’s public pension fund, the Public Institution for Social Security of Kuwait (PIFSS), identified an opportunity at 111 Wall Street in Manhattan’s Financial District.

Nightingale, Wafra Capital Talk 111 Wall Street and C-PACE Financing

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Quick Question: What Is C-PACE?

In this interview, Mansoor Ghori, CEO and Co-Founder, and The Real Deal reporter, Keith Larsen, discuss C-PACE and its important role for building owners in New York City, as Local Law 97 nears.

Petros PACE Closes Record $89 Million C-PACE Financing in the First C-PACE Transaction Ever Completed in NYC, Helping 1.2 MSF Tower Reduce Carbon Footprint

AUSTIN, TX and New York, NY (June 16, 2021) – Petros PACE Finance, LLC, the leading provider of Commercial Property Assessed Clean Energy (C-PACE) financing, has closed an $89 million C-PACE transaction for the iconic 111 Wall Street building in the first ever C-PACE deal completed as part of New York City’s recently launched C-PACE program. The funding is also the largest single C-PACE transaction ever closed in the United States since the financing structure debuted more than 10 years ago to help make sustainability improvements more affordable for property owners.

The 111 Wall Street PACE financing is part of the $500 million acquisition and reposition financing closed by the building’s joint venture-partners, Wafra Capital Partners and Nightingale Properties. The planned PACE-eligible renovations for the 1.2 million square-foot, 25-story high-rise office building will significantly reduce its carbon footprint including a full upgrade to the building’s façade and a complete infrastructure overhaul with state-of-the-art HVAC air conditioning and mechanical-electrical-plumping (MEP) systems, plus fully redundant power systems. The property intends to complete construction and lease-up in 2023 and achieve LEED Silver certification.

“This transaction is a transformational event for the C-PACE industry because it officially launches potentially the largest C-PACE market in the country, New York City, and highlights the breadth and scope of how C-PACE can be used by institutional sponsors to fund their carbon reduction requirements,” said Mansoor Ghori, CEO of Austin-based Petros PACE Finance. “We anticipate a ripple effect across the country as available capital increases and the benefits of the program become more widely known. In addition, we are grateful to both the Mayor’s office and NYCEEC, for working with us through this complex transaction to get it done in a timely manner.”

New York City’s Climate Mobilization Act of 2019 requires large properties to cut carbon emissions 40 percent by 2030 and 80 percent by 2050. The non-profit Urban Green Council estimates that the retrofits required will cost building owners approximately $20 billion through 2030. Institutional investors and global capital sources are also pressing building owners to reduce carbon footprints as part of Environmental, Social and Governance (ESG) goals.

“With these improvements, 111 Wall Street will be well-positioned to meet New York City’s requirements and attract today’s tenants that seek to lease buildings with forward-thinking green designs and environmental sustainability,” said Michael Gontar, Chief Investment Officer of Wafra Capital Partners. “We chose to work with Petros because of their industry-leading experience and execution capability giving us certainty of close on a C-PACE transaction of this size.”

“This financing highlights the strengths of our ability to execute on very large transactions with our committed institutional investor partners,” said Jim Stanislaus, CFO of Petros.

“With our deep experience and strong capital resources, Petros has a unique ability to finance complex transactions with large, investment grade owners and financiers of commercial real estate projects,” said Andy Meyer, Senior Vice President at Petros. “Wafra Capital Partners and Nightingale Properties, two of the strongest owner-operators in the country, are now able to transform 111 Wall Street with this C-PACE financing from Petros, along with debt from a lending consortium that included SKW Funding, PIMCO, Oaktree Capital and Bain Capital.”

Seen as a gamechanger in sustainable development finance, C-PACE is a long-term financing product secured by a property tax assessment that provides developers with a more affordable alternative to mezzanine debt and equity. The low-cost funding can be used for energy efficiency, renewable energy and water conservation improvements to commercial properties as retrofits or during new construction in 37 states and Washington D.C.

 

The press noted the importance of the first NYC PACE transaction:

 

About Petros PACE Finance

Petros PACE Finance, LLC is the national leader in the C-PACE marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint and increase property values and meet environmental, social and governance (ESG) goals. Its leadership team has decades of executive-level experience in private credit and structured finance, with direct long-term institutional investor relationships. With billions in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.

 

Media Contact:
Ron Heckmann
510-652-5800
ron@heckmanncomms.com

SOURCE Petros PACE Finance, LLC

Originally published at Cision PR Newswire

For New York Landlords, PACE Just Isn’t Moving Fast Enough

Mansoor Ghori, CEO and Co-Founder, contributed to a recent TheRealDeal article regarding the potential for C-PACE Finance in New York City.

The article notes that, “[for] C-PACE providers, New York City presents a perfect storm: aging buildings in need of massive energy upgrades, a law which requires these improvements and the real estate industry’s perpetual hunt for cheaper financing.”

Read the full article here to learn more about the impact of C-PACE Finance on New York City and the rest of the country.

Petros Funds More Than $100 Million in Refi Transactions with C-PACE as Relief-Valve for Commercial Property Owners Facing Covid Constraints

AUSTIN, TEXAS (Mar. 10, 2021) — Petros PACE Finance nearly tripled its prior 2019 total transaction volume in 2020. This included more than $100 million in retroactive Commercial Property Assessed Clean Energy (C-PACE) transactions as more and more commercial property owners used C-PACE as a refinancing tool to raise cash and lower expenses in response to pandemic-related challenges and uncertainty.

Petros closed refinancing transactions across eight states in the last 12 months. Demand for C-PACE refinancing continues to surge in 2021, fueled by ongoing business disruptions and capital restrictions among traditional lenders, along with broader availability and market awareness. Based on a pipeline in excess of $2 billion in C-PACE refinancing alone, Petros expects to close multiples of its 2020 volume this year.

“The economic crunch under the pandemic has led a lot of commercial property owners to seek alternative financing options, and we are fortunate to have helped so many of them – with refi transactions growing significantly as a percentage of total transaction volume,” said Petros CEO Mansoor Ghori. “While C-PACE has been instrumental for owners weathering this storm, we’re seeing more interest than ever in C-PACE as a preferred refinance tool because it enhances the long-term financial performance and efficiency/sustainability of their properties.”

Repaid through a special assessment on the property, fixed-rate C-PACE refinancing is available for terms up to 30 years and allows developers and property owners to:

  • Pay down senior debt and/or replace mezzanine debt with cheaper, non-recourse financing.
  • Modify existing mortgage obligations to reduce leverage and create interest reserves for senior debt.
  • Defer near term repayment obligations by capitalizing up to two years of interest payments into the financing.
  • Pay off or return investor or sponsor equity.
  • Generate liquidity to keep businesses operating and employees on the payroll.

C-PACE can be used by owners of nearly all commercial property types for a long list of energy, water and resource-focused expense items that typically involve a building’s mechanical, electrical, and plumbing systems, along with the building envelope. To qualify for refinancing, developments or efficiency upgrades must have been completed in the last one to three years, depending on applicable C-PACE program regulations.

About Petros PACE Finance

Austin, TX-based Petros PACE Finance, LLC is the national leader in the Commercial Property Assessed Clean Energy (C-PACE) marketplace, dedicated solely to providing long-term C-PACE financing to commercial property owners seeking to lower energy costs, reduce their carbon footprint, and increase property values. Its leadership team has decades of executive-level experience in commercial lending and structured finance, with direct long-term institutional investor relationships. With billions of dollars in committed capital, Petros is able to close transactions in eligible C-PACE markets nationwide. To learn more about Petros PACE Finance, visit our website at www.petros-pace.com.

Media Contact:
Ron Heckmann
510-652-5800
ron@heckmanncomms.com

SOURCE Petros PACE Finance, LLC

Originally published at Cision PR Newswire

C-PACE Builds Resilience in Tough Times

Our CEO & co-founder Mansoor Ghori was quoted in the recent publication by Commercial Property Executive, commenting on the “significant uptick” in 2020 of retroactive C-PACE transactions, and the wider potential for 2021.

Read the full article here.