AUSTIN, Texas, March 19, 2019 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com) announced today the closing of a $1.2 million Commercial Property Assessed Clean Energy (C-PACE) transaction in Toledo, Ohio, marking Toledo's first privately funded C-PACE project and Ohio's first Opportunity Zone project to include C-PACE financing. The Toledo-Lucas Port Authority is the C-PACE program administrator and Coda Management Group is the developer.
"More developers are deciding every day to integrate C-PACE financing into their capital stacks as an efficient source of funding for building efficiency upgrades associated with redevelopments of older properties and revitalization of surrounding neighborhoods," said CEO of Petros PACE Finance, Mansoor Ghori. "Coda Holdings is an experienced developer with an impressive portfolio of residential and commercial developments across the Midwest."
The transaction will fund energy efficiency upgrades as part of the redevelopment of a 1900's era commercial warehouse building into a 690-unit self-storage facility. Proceeds will be utilized to replace the roof, insulate the ceiling, and install double-pane windows, high-efficiency furnaces and AC units, LED lighting and controls.
"C-PACE financing was a critical component in the capital structure for this transaction and we had a short window to close in order to take advantage of this Qualified Opportunity Zone funding," said Scott Krone, CEO of Coda Management Group. "Petros stepped up to provide timely execution along with competitive terms and we look forward to working with them in the future."
The Opportunity Zones program, passed as part of the Tax Cuts and Jobs Act of 2017, promotes economic development in distressed communities by giving investors and developers the ability to forgo and defer paying some capital gains taxes if they invest in any of the designated zones.
"We have a long-standing relationship with Petros PACE Finance and it's been great to work with them," said Josef Pipoly, CEO of PACENERGIES, who consulted on the project. "Their deep bench of expertise brings a high level of efficiency to every part of the transaction process and that's why we brought them in as the financial partner for this project."
Last year, Petros PACE Finance announced that it had secured a multi-billion-dollar capital commitment from institutional investor partners for funding C-PACE transactions nationwide. The capital commitment enables Petros PACE Finance to fund new construction and gut rehab projects nationally and, most importantly, provides property owners and developers certainty of close on projects financed by Petros PACE Finance.
Founded in 2013, Petros PACE Finance has dedicated all of its resources to providing long-term C-PACE financing to commercial property owners and developers across the country and has completed C-PACE financing transactions in 11 states, including the District of Columbia. C-PACE is a long-term, fixed-rate financing product secured as a parcel tax assessment and solves many problems that have historically prevented commercial property owners from investing in energy efficiency retrofits or renewable energy retrofits. Legislatively approved in 36 states, C-PACE financing can also be utilized by developers to replace expensive mezzanine debt or equity in their new construction and redevelopment projects. Petros PACE Finance provides property owners and developers with the low-cost upfront capital for these projects.
About Petros PACE Finance
Petros PACE Finance, LLC is the industry leading financier of long-term C-PACE capital. Leaders, Mansoor Ghori, Jim Stanislaus, and Tommy Deavenport have 60+ years of executive-level expertise in all major aspects of C-PACE: commercial lending, structured finance, debt fund management, and direct, long-term institutional investor relationships. Petros PACE Finance is able to close transactions in active C-PACE markets using private funds to promote energy conservation and economic development nationwide. With billions in committed capital and a track record of execution, Petros PACE Finance is setting the standard of excellence and providing clients certainty of close. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.
Contact: Kylie Fitzpatrick, [email protected], 512-599-9042
SOURCE Petros PACE Finance, LLC