AUSTIN, Texas, Dec. 13, 2018 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com) announced today the closing of a $16.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction in Columbus, Ohio with UPH Holdings, LLC, an affiliate of Continental Hospitality Group and Concord Hospitality Enterprises. This is the largest publicly-announced C-PACE deal in the country to date in 2018.
The project will fund eligible upgrades to a 354-room dual branded Marriott Hotel & Residence Inn in Columbus near the Ohio State University campus. The redevelopment of the former University Plaza Hotel included significant energy efficiency measures such as a comprehensive building envelope upgrade, lighting improvements, and other efficiency measures to generate substantial savings over the term of the financing.
"We are thrilled to have closed our first deal in Ohio," said Petros PACE Finance CEO Mansoor Ghori. "We look forward to funding many more projects in the state as more property developers integrate C-PACE financing as part of their construction and take-out capital strategies."
The C-PACE financing was administered by the Columbus-Franklin County Finance Authority through the Columbus Regional Energy Special Improvement District PACE program. Last month 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 to fund large new construction and gut rehab projects nationally and, most importantly, provides property owners and developers certainty of close on projects funded by Petros PACE Finance.
"We view C-PACE as a valuable financing tool," said Tony Mathena, Vice President of Finance and Development at Continental Hospitality Group, an owner, developer, buyer and joint venture partner of high-quality lodging properties. "It was great to work with the experienced team at Petros PACE Finance. C-PACE financing was a perfect fit in the capital stack of the project."
Founded in 2013, Petros PACE Finance has dedicated all of its resources to providing long-term C-PACE financing to commercial property owners 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 that is secured as a parcel tax assessment, and it solves many problems that have historically prevented commercial property owners from investing in energy efficiency retrofits or renewable energy. Legislatively approved in 36 states, C-PACE financing can be utilized by developers to replace expensive mezzanine debt or equity in their development projects at lower cost. Petros PACE Finance provides developers and property owners with the upfront capital for these projects.
About Petros PACE Finance Petros PACE Finance, LLC is the leading financier of long-term capital for C-PACE. The principals of Petros PACE Finance, Mansoor Ghori, Jim Stanislaus, and Tommy Deavenport, have executive level expertise in all critical aspects of C-PACE: commercial lending, structured finance, debt fund management, and direct, long-term institutional investor relationships. Learn more at petros-pace.com.