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.

Retroactive Energy Efficiency Loans Offer Pandemic Lifeline for Some Businesses

Rachel Davis, Senior Vice President of Sales at Petros PACE Finance, was quoted in this Energy News Network article about how Petros has been seeing more interest in retroactive financing in 2020.

Rachel is quoted as saying, “We are seeing it where maybe the building owner had higher-cost mezzanine debt that’s started to come due…This is a natural fit if they can replace it with PACE. And we’re also seeing folks use it to modify their senior loan agreements, where they pay down some of the senior mortgage and lower their exposure.”

Read the full article here.

Petros PACE Finance Welcomes Michael Yaki as SVP and Senior Counsel – Policy and Programs

AUSTIN, Texas, November 11, 2020 /PRNewswire/ —

Petros PACE Finance, (www.petros-pace.com), the industry leader of Commercial PACE financing, announced that Michael Yaki has joined the company as Senior Vice President and Senior Counsel of Policy and Programs. In his new position, Mr. Yaki will engage in the establishment and maintenance of C-PACE programs across the country.

“Michael’s policy background plus his experience with C-PACE programs will be an extremely beneficial add to Petros, as we navigate the growth in the market,” said Mansoor Ghori, CEO and Co-founder at Petros PACE Finance. “His knowledge of the intricacies of C-PACE programs will make an immediate impact for us. We are happy to welcome him aboard.”

For years, Mr. Yaki’s law and policy expertise has driven new market creation and PACE innovation across the country. He most recently served as the primary author of the state of Washington’s C-PACE statute enacted in June 2020. As an industry thought leader, Mr. Yaki has advised legislators in both state and local governments on how to establish successful C-PACE programs. Michael received a B.A. from UC Berkeley and a J.D. from the Yale Law School and has years of public policy experience in the public and private sectors.

“I’m excited to join Petros, the industry leader within today’s C-PACE marketplace,” said Mr. Yaki. “Commercial PACE addresses critical environmental and resiliency needs, and adds value to buildings and business owners. I look forward to working with the great leadership team at Petros to drive its continued growth across the country.”

 

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. Leadership has decades of executive-level experience in commercial lending 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:
Rachel Davis
832-489-2788
rachel@petrospartners.com

SOURCE Petros PACE Finance, LLC

Originally published at Cision PR Newswire

C-PACE lender Petros sees ‘substantial’ uptick in business

04 August 2020 | 17:51 ED

Commercial PACE lender Petros PACE Finance originated 30% more CPACE
volume in 1H20 than in all of 2019, according to Mansoor Ghori,
managing director.

“Based on the term sheets we’re getting, it’s not slowing down,” he said.
“We’re getting term sheets signed about every day.”

The average size of the company’s funded C-PACE lien is “substantially
greater than it was last year,” Ghori said. The average lien funded is
currently at USD 7m, compared with about USD 2.5m to USD 3m last
year, he said.

Petros currently issues private placement deals, and last month closed
on the company’s seventh deal. The lender will likely issue two more
deals this year, Ghori said.

Many borrowers want to lock in PACE financing while it’s available now
rather than wait, given the uncertainty in the markets due to the
coronavirus pandemic, Ghori said.

“We’ve seen [project leaders] that were thinking about using PACE later
in the year, and now they’re thinking ‘we don’t know what’s going to
happen later, there’s so much uncertainty, senior lending is getting
tighter and tighter. If we’ve got the cap stack together right now let’s
just go ahead and get the pace done right now,’” Ghori said.

Also there has been increased interest due to C-PACE competitors not
being able to currently fund projects, Ghori said.

There is business “coming from competitors who had worked on these
projects, taken it to the point of closing and then something happened,
where they could no longer close on that transaction,” he said. “So,
we’ve seen that [business] come to us.”

Ghori declined to give more details on which competitors are unable to
fund C-PACE projects, following the pandemic’s outbreak.

On the investment side, more investors are still being drawn to the CPACE
sector right now, Ghori said.

“Investors are still dying to get pieces of the business,” he said,
particularly with where Treasury yields are right now.

Commercial PACE tax assessments are also seen as relatively safe
assets because the payment priorities are senior to mortgages on the
properties.

Property owners that take on a C-PACE lien pay a coupon of about 6%,
or a little lower, on average across the sector, as reported.

In response to the influx of business, Petros has also increased its team
and in July hired Connor Murch as vice president of business
development based in the St. Louis office, according to a 14 July
company release.

Because the PACE sector is relatively new still, it is often difficult to
find talent with prior experience in the market, Ghori said. However,
Murch previously worked at Stonehill PACE, where he led national
origination efforts for the firm, according to the release. “He has been
on board now for two or three weeks and we’ve already got four deals
that we’re working on, that he brought in,” Ghori said.

by Larissa Padden

Originally published at Debtwire

Petros PACE Finance Expands Legal Team with Hiring of John Gamm and Katy Crocker as Vice Presidents of Legal

AUSTIN, Texas, July 21, 2020 /PRNewswire/ — Petros PACE Finance, (petros-pace.com), the industry leader of Commercial PACE financing, announced today the hiring of John Gamm and Katy Crocker as Vice Presidents of Legal, strengthening the legal team as the company continues to grow nationally.

“These key additions to the team come at a critical time for Petros, as our business has accelerated in recent months,” said Mansoor Ghori, CEO and Co-founder at Petros PACE Finance. “The combined knowledge and experience of John and Katy will position us well for continued growth and best-in-class service, as we expand our offerings.”

Gamm joins Petros from Stinson, where he served as a transactional associate in the real estate tax credit finance group. At Stinson, he represented capital providers in connection with C-PACE transactions across various states and facilitated tax credit transactions, including historic tax credits, New Market Tax Credits, and renewable energy tax credits. Gamm received a J.D. from Creighton University School of Law and a BBA from Texas Christian University, graduating cum laude.

“Petros has built an impressive business and I’m excited to join a team that has established a leading reputation in rapidly growing practice areas serving commercial real estate owners and developers,” said Gamm.

Crocker joins Petros from Cramer Weatherbie Richardson Oliver, LLP, a law firm specializing in commercial real estate transactions.  She represented clients involved in a diverse range of commercial real estate and business transactions. Crocker has more than 15 years of experience in the real estate industry, previously working for a real estate investment group focused on international hospitality acquisitions and as a financial analyst in the Real Estate finance and Securitization Group at Credit Suisse. Crocker received a BBA from the University of San Diego and a J.D. from Texas Tech University School of Law.

“Petros is a category leader that’s helping the real estate industry move forward during these uncertain times, and I look forward to being a part of the effort to progress the firm into the next phase in its evolution,” said Crocker.

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. Leadership has decades of executive-level experience in commercial lending 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 petros-pace.com.

Media Contact:
Kylie Fitzpatrick
512-599-9042
kylie@petrospartners.com

SOURCE Petros PACE Finance, LLC

Originally published at Cision PR Newswire

Petros PACE Finance’s Growth Continues with Hiring of Industry Veteran Connor Murch as Vice President of Business Development

AUSTIN, Texas, July 14, 2020/PRNewswire/ — Petros PACE Finance, (petros-pace.com), the industry leader of Commercial PACE financing, announced today the hiring of Connor Murch as Vice President of Business Development based in the St. Louis office, strengthening the business development team as the company continues to grow nationally.

“Our business and transaction volume has increased rapidly in recent months, despite the economic downturn, and we our expanding our team to accommodate that growth,” said Mansoor Ghori, CEO and Co-founder at Petros PACE Finance. “Connor brings a wealth of industry experience to Petros and will be a valuable asset on the team as we continue to build momentum.”

Murch joins Petros from Stonehill PACE, where he led national origination efforts for the firm. Prior to that, Murch gained extensive experience closing C-PACE and other commercial real estate transactions while serving as a Senior Finance Manager at RAHILL Capital. He also held roles as a Finance Manager and Project Manager at Revival STL Construction, a commercial real estate development, investment and management firm.

“Petros is a pioneer at the forefront of the C-PACE industry,” said Murch. “I’m excited for the opportunity to be a part of the tremendous growth that Petros is currently experiencing even during these uncertain times.”

Murch received a BSBA with a concentration in Finance and Real Estate from the University of Missouri Trulaske College of Business.

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. Leadership has decades of executive-level experience in commercial lending 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 petros-pace.com.

Media Contact:
Kylie Fitzpatrick
512-599-9042
kylie@petrospartners.com

Originally published at Cision PR Newswire