Petros PACE Finance Provides $8 Million C-PACE Financing for Hyatt House in Kansas City
AUSTIN, Texas, Oct. 23, 2019 /PRNewswire/ — Petros PACE Finance, LLC (petros-pace.com) has closed an $8 million Commercial Property Assessed Clean Energy (C-PACE) transaction with Pedersen Development Company, a Colorado-based developer, to finance energy efficiency measures in the construction of a 13-story Hyatt House in downtown Kansas City, Missouri.
Pedersen will use the funds to incorporate sustainable design measures, including the efficient building envelope components of roofing, walls and windows, HVAC equipment, hot water heaters, LED lighting and elevators, in the construction of a 153-room hotel at the southwest corner of Ninth Street and Broadway.
“More developers are seeking C-PACE financing as a smart development tool that increases project returns and sustainability – without the use of any public tax dollars,” said Mansoor Ghori, Petros PACE Finance CEO. “Pedersen Development Company is an experienced property developer and we look forward to continuing to work with them on exciting projects.”
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.
“C-PACE financing was a perfect fit for our capital stack on this project,” said Scott Pedersen, Pedersen Development Company Managing Partner. “Petros has an expert understanding of how all the financing pieces fit together and we enjoyed working with them.”
Over the 20-year life of the assessment, energy-conserving features will generate over $7 million in utility and maintenance savings and a CO2 reduction of 1,159 metric tons.
This marks Petros’ fourth C-PACE deal in Missouri. Show Me PACE serves as the administrator of the Jackson County Property Assessed Clean Energy Program and Brinkmann Constructors serves as the general contractor for the project. The development also benefitted from incentives provided through the Land Clearance and Redevelopment Authority of Kansas City (LCRA), including a 15-year property tax abatement, Community Improvement District (CID) funding and a sales tax exemption on construction materials.
“C-PACE continues to bring tremendous value to developers and communities in Missouri,” said Rob Shear, SVP of Florida and New Markets at Petros. “This project marks a new milestone in this quickly growing market as the largest C-PACE funding in Missouri for a ground-up hotel development.”
Construction is expected to begin this month with completion expected in January of 2021.
About Petros PACE Finance
Petros PACE Finance, LLC is a 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