AUSTIN, Texas, Nov. 25, 2019 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com ) Petros PACE Finance has closed an $11 million C-PACE transaction with WestPac, a Santa Barbara-based investment, development and management firm, to finance seismic upgrades for the Hotel Cerro, a historic gut rehab project in downtown San Luis Obispo, California.
WestPac will use the funds for a seismic retrofit to an early 20th-century property as part its conversion into a five-story, 65-room boutique luxury hotel. The hotel will include the largest spa and the first rooftop pool and bar in downtown San Luis Obispo, along with dining and event spaces, a distillery, and rooftop garden. Located in the heart of the coastal city, the hotel will cater to visitors of the popular tourist destination, including wine country guests, parents of Cal Poly SLO students, wedding and business groups.
"Creative financing solutions are needed to breathe new life into historic properties like this, because they often require costly upgrades to the building's original infrastructure," said Mansoor Ghori, Petros PACE Finance CEO & Co-Founder. "C-PACE financing from Petros is providing WestPac with a lower-cost alternative to traditional financing for seismic upgrades on a stylish, contemporary hotel that will attract more visitors to downtown San Luis Obispo."
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. Additionally, California property owners can use C-PACE for seismic upgrades to more cost effectively reinforce their buildings.
"WestPac is committed to the sustainable development of distinctive properties," said Patrick Smith, Partner at WestPac Investments. "We've closed three deals with Petros now and they've become an extremely valuable partner in helping us pursue our vision of sustainable development. Petros brings both low-cost capital and an expert team with the ability to understand complex transactions and get the job done."
Petros closed the transaction through the Western Riverside Council of Governments (WRCOG) PACE Program. Specialty Construction served as the general contractor for the project.
The hotel is expected to be open to guests by the end of the year.
About Petros PACE Finance
Petros PACE Finance, LLC is the 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 www.petros-pace.com.