Petros PACE Finance Provides $3.5 million in C-PACE Financing for Hyatt House in Columbus, Ohio Mixed-Use Development
AUSTIN, Texas, Nov. 7, 2019/PRNewswire/ — Petros PACE Finance, LLC (petros-pace.com ) has closed a $3.5 million Commercial Property Assessed Clean Energy (C-PACE) transaction with Continental Hospitality Group (CHG), an Ohio-based owner, developer, buyer and joint venture partner of high-quality lodging properties, to finance the energy efficiency components of the construction of a 5-story Hyatt House in Columbus, Ohio.
CHG will use the funds to incorporate sustainable design elements into a 152-room hotel, including efficient building envelope upgrades to the roofing and walls, HVAC equipment, and LED lighting. The project is part of “Founder’s Park,” a 20-acre, $200 million mixed-use urban living community that will also include 38 single-family homes, 50 townhomes, 342 apartments, a 200-unit senior housing facility and a park.
“Ohio has emerged as one of the fastest growing C-PACE markets thanks to developers like Continental Hospitality Group, who are taking advantage of C-PACE as a low-cost source of capital that allows them to maximize the efficiency designs of their properties,” said Mansoor Ghori, Petros PACE Finance CEO. “This is our second closing with Continental and we are excited to help them continue meeting demand for hotel accommodations in this part of Ohio.”
C-PACE is a relatively new financing tool for energy and water efficiency projects that has grown quickly in recent years. A low-cost, long-term financing product secured as a property tax assessment, it solves many problems that have historically prevented commercial building owners from investing in energy efficiency or renewable energy, such as high upfront costs.
“Using C-PACE financing allowed us to incorporate sustainability into this project, while also providing long-term stability for the capital stack,” said Tony Mathena, Vice President of Finance and Development at CHG. “We enjoyed working with Petros again to secure the best product for our community and the best return for our investors.”
This marks Petros’ fifth funding in Ohio. The Columbus-Franklin County Finance Authority serves as the administrator of the Columbus Regional Energy Special Improvement District PACE Program Plan and Continental Building Companies is serving as the general contractor for the project.
Construction will commence in November with completion expected by early summer 2021.
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.
Originally published on Cision PR Newswire