What can we help you with?


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Who is Petros PACE Finance?

Petros PACE Finance was founded in 2013 by a team with decades of experience in lending, structured finance, and developing operations for smooth transaction closings. We have significant institutional backing and a track record of getting C-PACE deals done when others can’t. Based in Austin, Texas, Petros PACE Finance is affiliated with Apollo Global Management, an American global private equity firm providing investment management, investing in credit, private equity, and real assets.

What is commercial property assessed clean energy (C-PACE)?

C-PACE is an alternative financing mechanism, passed by state legislation, enabling owners and developers of commercial and industrial properties to receive low-cost, long-term financing for energy efficiency, water efficiency, renewable energy and resiliency projects (Eligible Upgrades). C-PACE payments are secured by the property and repaid through a voluntary assessment on the property’s tax bill.

What is a C-PACE Assessment?

A C-PACE assessment is a debt of property, meaning the C-PACE financing is tied to the property via its tax bill as opposed to the property owner, so the repayment obligation transfers with the property upon sale. Assessment financing is a concept that has been used for over 200 years for the repayment of municipal bonds attached to property taxes to fund projects for public good, such as fire stations, street lighting, and sewer and sidewalk improvements. The difference is that C-PACE uses the model for efficiency and sustainability projects for the benefit of individual building owners in the private sector.

What is the total footprint of C-PACE financing since inception?

Since the first statute was passed in 2010, over $2 billion in C-PACE transactions have been funded and publicly announced according to PACENation. This represents over 2,000 commercial projects that are responsible for generating over 24,000 jobs across the country.


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Where is C-PACE available?

The number of active C-PACE markets increases by the week. To date, C-PACE-enabling legislation has been passed in 39 states and the District of Columbia and C-PACE programs are now operating in 17 states plus the District of Columbia. Reach out to learn if your city or municipality participates with the local C-PACE authority.

Will my property qualify for C-PACE financing?

If your building is in need of energy efficiency, water efficiency, seismic or resiliency measures, your property is more than likely eligible. Petros PACE Finance will finance most commercial property types, including but not limited to office and industrial buildings, retail, warehouses, multifamily properties, hospitality, medical facilities, nonprofits etc.

Will my project qualify for C-PACE financing?

Most commercial property types in need of efficiency upgrades will qualify. Eligible conservation measures (ECMs) must either reduce energy consumption or demand, produce renewable energy or conserve water. There is no prescribed list of measures but generally efficient mechanical, electrical and plumbing measures like chillers, boilers, LED lighting, building envelope, solar and low flow plumbing fixtures would qualify. Specific savings requirements will vary by project type and program.

In addition to ECM qualification, Petros will underwrite the financial merits of the project to determine qualification including, but not limited to, property value, owner’s equity, financial performance or projections of the property, loan-to-values (LTVs) percentages and debt service coverage ratios (DSCRs). Additional property evaluations will be conducted to ensure there are no existing environmental issues, involuntary liens or unpaid taxes.

Can C-PACE financing be assessed retroactively on completed projects?

Yes, in some states C-PACE can be used to finance improvements that are already installed and in operation. Petros can assist you in verifying eligibility and particular limitations that could apply in a specific market.

Does the program differ in connection with local legislation?

Because C-PACE programs are enabled by state and local legislation, program requirements vary by jurisdiction. Some states allow C-PACE financing for new construction, for example, while others do not. Savings requirements also vary by program.


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How much C-PACE can I borrow?

Petros PACE Finance has the ability to fund projects ranging from $500,000 to $200 million or more. We can finance 100% of your C-PACE eligible project costs, including related soft costs (i.e. engineering, legal & other fees). However, individual projects are generally limited to maximum 35% LTV.

Why use C-PACE financing instead of bank financing?

C-PACE financing offers a more efficient means of financing sustainable property elements, via the following features:

  • C-PACE provides 100% funding for qualified Energy Conservation Measures and associated project soft costs
  • C-PACE is non-recourse after construction meaning that the assessment is secured by the property instead of personally by the borrower
  • C-PACE is non-accelerating so the unpaid C-PACE balance can never be called due, even upon an event of default or foreclosure
  • C-PACE terms may extend up to 30 years, yielding lower annual payments and thereby allowing the improvements to pay for themselves via savings generated over the life of the Energy Conservation Measures
  • C-PACE’s assessments remain with the property, alleviating the requirement for payoff upon transfer of title
  • C-PACE’s assessment mechanism provides a means for recovery of expenditures from tenants or hotel guests

What if I currently have a mortgage? Does my mortgage lender need to give consent?

Yes, since C-PACE liens share the same priority as property taxes and mortgage documents include provisions prohibiting modification of the loan, the existing mortgage lender must give consent for the placement of the C-PACE assessment. We can assist you in this process and encourage these discussions to be initiated as early as possible in the process.

Why would my mortgage lender consent to C-PACE?

In most cases, consent is likely because C-PACE projects will increase your building’s value and net operating income, thereby making it easier for the property owner to service the existing mortgage. Furthermore, only the C-PACE assessment in arrears is ever in front of the mortgage and C-PACE has no impact to a mortgage lender’s rights, remedies, ability to foreclosure, cure, etc. To date, over 500 lending institutions have consented to C-PACE projects across the country.

We have successfully navigated securing consent for our borrowers and can assist you in this process.

Does C-PACE funding increase the risk to the underlying mortgage?

While C-PACE assessments have priority of payment over the mortgage lender, the magnitude of any loss to the lender is limited. When a property owner defaults on a C-PACE payment, only the past due amount, not the entire balance, is due. This outstanding delinquent C-PACE amount has priority of payment over a mortgage loan. The C-PACE assessment does not accelerate upon delinquency or default.


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What are the steps for funding a project with Petros PACE Finance?

  1. Petros works with the local C-PACE authority to obtain project approval;
  2. Energy audit is obtained;
  3. Petros works with the borrower to obtain consent from the mortgage lender (if any); and
  4. Property owner completes our financing application;
  5. The closing and funding of the project occurs

Petros works with developers to determine an initial sizing estimate of the C-PACE assessment for use in determining the preliminary project capital stack. We can also assist in the process of engaging engineers experienced in evaluating new construction and gut rehab projects to identify measures and associated savings for the qualification of C-PACE.

How long does it take for a project to make it through the process to be funded?

Petros does not hinder the normal project development timeline. As long as we receive our diligence information in a timely fashion, we can move along simultaneously with the energy auditors, project engineers, etc. Once all due diligence items are complete, we expect to close on funding within 30-45 business days.

What is the timing of the release of C-PACE funds?

Petros PACE Finance funds each project directly at closing into an escrow account. Funds are then disbursed during the construction of the project, alongside the construction lender’s funds if applicable.

Can I use any contractor?

Yes, so long as the contractor is a registered contractor if required by the applicable C-PACE program.

How do I pay my C-PACE assessment?

The assessment is included on your property’s tax bill and is typically paid annually or semi-annually either directly to the county along with your ad valorem taxes or directly to Petros depending on the collection method specified by the C-PACE program.

Can I pay off my C-PACE assessment early?

Yes, however, a prepayment fee may apply. These terms will be detailed in our term sheet and the Assessment Agreement.

What happens if I sell the property?

The C-PACE assessment can remain in place as it is designed to transfer seamlessly to the subsequent owner upon sale. C-PACE improvements tend to increase the value of a property through higher tenant retention rates, higher occupancy, improved infrastructure and improved cash flows. The new owner and its tenants are assuming the cost of the C-PACE loan but they will also benefit from the utility and maintenance savings generated by the project. In general, it is easier to sell a property without end-of-life concerns around building systems — projects that can be financed through C-PACE.

What happens when I assume a property with a C-PACE assessment in place?

C-PACE assessments are always recorded, so they are easily identified in title reports. The assessment will transfer automatically and because C-PACE assessments have a flat, predetermined amortization, they can be incorporated into your mortgage lender’s T&I escrow.