For more than a decade Petros PACE Finance has played a leading role in shaping and expanding our young industry, and it’s exhilarating to watch these efforts converge to make 2021 a breakout year for C-PACE.
Economic growth, environmental regulatory expansion, ESG goal setting and growing awareness among commercial property owners and financial lending institutions are fueling unprecedented demand and transaction sizes for C-PACE capital.
The cumulative effect pushed our transaction volume for the first half of 2021 ahead of our total volume for all of 2020, with no slowdown in sight.
NYC C-PACE LAUNCHES – A PIVOTAL MOMENT FOR OUR INDUSTRY
Petros PACE Finance launched New York City’s C-PACE program with a bang in June, shattering industry records with our $89 million C-PACE funding for the iconic 111 Wall Street building, the first deal ever to close through the NYC Accelerator PACE Financing Program administered by NYCEEC.
Undeniably the largest C-PACE market in the country, the launch of the NYC program promises to generate exponential growth in C-PACE financing as owners of the city’s many large commercial properties rush to meet NYC’s aggressive carbon reduction deadlines as part of NYC’s Local Law 97 impacting most buildings larger than 25,000 square feet — a massive undertaking as part of the New York Climate Mobilization Act estimated to require more than $20 billion in efficiency investments by 2030.
C-PACE EXPANSION CONTINUES NATIONWIDE
The growth of C-PACE continues across the nation, with the passing of new statues and the expansion and improvement of existing statutes and programs. Some notable updates include:
- Tennessee – C-PACE statute signed into law in April, allowing for new construction, refinancing, and eligibility of resiliency improvements
- Washington and Alaska – Enabling legislation was passed and the first C-PACE programs launched in Thurston County (includes Olympia) and the City of Anchorage, respectively
- Montana – C-PACE statute signed into law in May
- Nevada – A thorough rewrite of their C-PACE law goes into effect October 1 that allows refinancing and will make its program much more property-owner friendly, along with expansion of eligibility to water and resiliency improvements
- Virginia – Amended previous legislation to allow C-PACE refinancing and also expanded eligibility to include resiliency measures effective July 1
- New Jersey – Legislation to modernize NJ’s PACE law was passed in May. A statewide program will be set up to develop guidelines for retrofits, with guidelines for new construction and refinancing to follow. Until then, projects can still be funded under the existing statute
- Maine – Modified their statute to give C-PACE lien priority and require lender consent
Petros played a leading role in most of these efforts, serving as the primary industry advocate shaping legislation in Nevada, Tennessee and Washington and having been instrumental in the final details enabling opening of the NYC program.