AUSTIN, Texas, Nov. 1, 2018 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com) announced today the closing of a $2.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction in Nebraska with Lucky Omaha Hospitality, LLC. The project will fund energy efficiency upgrades to a 30-year-old midtown Omaha hotel undergoing redevelopment.
The efficiency project is part of the conversion of the six-story, 119-room University Inn Midtown Crossing into a Four Points by Sheraton hotel that is scheduled to be completed toward the end of 2018. This is the second C-PACE project in Nebraska funded by Petros PACE Finance and PACE Sage Capital.
"Many times, real estate capital stacks can fall short of the funds necessary to cover the additional up-front cost of more expensive energy and water saving equipment that lowers the property's operating costs," said Petros PACE Finance CEO Mansoor Ghori. "C-PACE can replace or complement more expensive equity or mezzanine with lower-cost, non-accelerating financing."
"This was a transaction where the senior lender and our PACE financing were in perfect harmony, demonstrating how much PACE has become mainstream in the lending community," said Rob Shear, CEO of PACE Sage Capital, a key C-PACE financing originator in the Midwest.
Lucky Omaha Hospitality, LLC utilized Omaha's PACE program to finance energy efficient lighting, elevators, building automation system, restaurant and bar equipment and low-flow plumbing in the guest rooms. The upgrades are expected to generate $2.3 million in energy savings over the 20-year loan. The borrower will repay the loan via a special assessment on their local property tax.
"C-PACE financing allowed us to increase the building's energy-efficiency, which enabled us to lower energy costs and attract hotel guests that want to stay in an eco-friendly property," said Chris and Nick Patel with Nexgen Hotels, project developer and owner of Lucky Omaha Hospitality, LLC.
About Petros PACE Finance
Petros PACE Finance, LLC is the leading financier of long-term capital for C-PACE. The principals of Petros PACE—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.
Media Contact: Natalie Groves
SOURCE Petros PACE Finance, LLC