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.
SOURCE Petros PACE Finance, LLC
Originally published at Cision PR Newswire