AUSTIN, Texas, April 22, 2019 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com) announced today the closing of a $1.7 million Commercial Property Assessed Clean Energy (C-PACE) transaction with Manzitto, a Lincoln, Nebraska-based commercial and residential real estate developer, marking the first C-PACE project in Lincoln.
"This is a great example of how developers can leverage C-PACE alongside traditional debt and other tax credit enhancements," said Mansoor Ghori, CEO of Petros PACE Finance. "Manzitto is an experienced real-estate developer with 40 years of demonstrated commitment to building better communities and we are pleased to partner with them as they build on that legacy by investing in sustainability."
The project, which broke ground in February, will incorporate energy saving measures in the construction of the Lincoln Sports Facility, a 92,000-square-foot amateur sports facility at 150 Southwest 14th Place. It will include eight basketball courts which can convert into twelve volleyball courts, along with a 5,000-square-foot athletic training center, and will host practice games and regional tournaments for area youth. Energy efficient features include lighting, roofing, and windows, along with heating and cooling systems. The Greater Nebraska PACE District is the C-PACE program administrator.
C-PACE is a long-term, fixed-rate financing product secured as a property tax assessment and solves many problems that have historically prevented commercial property owners and developers from investing in energy efficiency or renewable energy improvements.
For this development, C-PACE was a natural complement in the capital stack that also included Tax Increment Financing and New Markets Tax Credits, both of which incentivize investment in economically distressed areas.
"Because this project also uses New Market Tax Credits to help fund construction, we needed a capital provider with demonstrated experience integrating C-PACE into complex capital stacks," said Sam Manzitto, Jr., President of Manzitto. "The Petros PACE Finance team worked with our senior lender, NMTC investors and TIF fund provider to deliver the best financing solution, ensuring the Lincoln Sports Facility can provide a comfortable community center for young athletes and their families to enjoy for years to come."
The project comes amid rapid growth of C-PACE as a financing tool for commercial property owners and developers in Nebraska to boost sustainability and economic development. Nebraska's first C-PACE deal closed last summer and Petros PACE Finance has seen steady market growth in the state over the past year, closing the nation's largest C-PACE deal of 2018 in Omaha last December. This marks Petros' sixth deal in Nebraska.
Founded in 2013, Petros PACE Finance has dedicated all of its resources to providing C-PACE financing to commercial property owners and developers across the country. Legislatively approved in 36 states, C-PACE financing provides low-cost, upfront capital for energy saving property enhancements and can also be utilized by developers to replace expensive mezzanine debt or equity in their new construction and redevelopment projects. Last year, Petros PACE Finance announced that it had secured a multi-billion-dollar capital commitment from institutional investor partners to fund new construction and gut rehab projects nationally, providing property owners and developers certainty of close.
Construction renderings are available upon request.
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. With billions in committed capital and a track record of execution, Petros PACE Finance is able to close transactions in active C-PACE markets using private funds to promote energy conservation and economic development nationwide. To learn more about Petros PACE Finance visit our website at www.petros-pace.com.