AUSTIN, Texas, June 24, 2019 /PRNewswire/ -- Petros PACE Finance, LLC (www.petros-pace.com ) has closed a $900,000 Commercial Property Assessed Clean Energy (C-PACE) transaction with City Ventures, a Nebraska real estate investor and developer, to finance energy and water efficiency for their newest car wash in western Omaha.
C-PACE financing is a long-term, fixed-rate financing product secured as a property tax assessment that solves many problems, such as high upfront costs and long payback periods, that have historically prevented commercial property owners and developers from investing in energy efficiency or renewable energy improvements.
"We're seeing a more diverse group of asset classes using C-PACE as more developers are seeking alternative sources of capital for new construction projects," said Mansoor Ghori, CEO at Petros PACE Finance. "City Ventures is a forward-thinking developer reshaping the Nebraska region and we're pleased to help them bring clean energy solutions to their business."
City Ventures will use the funds to incorporate a water recovery system and snow melt boiler, along with other energy-saving property enhancements, into the construction of its newest Rocket Carwash location. The water recovery system will recover, clean and re-use up to 60% of the water used at the carwash, greatly reducing water consumption and sewer loads on the local infrastructure. Additional energy-efficient features contributing to the annual CO2 reduction of 233,138 pounds include LED lighting, HVAC units, roof insulation and weatherization. The City of Omaha administered the C-PACE financing for the Eastern Nebraska Clean Energy Assessment District (ENCEAD).
"Car washes are significant water and energy users, so when we realized we could finance more efficient systems using C-PACE, it was a no-brainer," said Chris Erickson, Co-founder of City Ventures. "Partnering with Petros allows us to make a strong business case for investing in sustainability, giving us another way to lower our cost of capital, and we look forward to continuing to work with them."
The project comes amid rapid growth of C-PACE as a financing tool for commercial property owners and developers in Nebraska looking to boost sustainability and economic development. The project is projected to create 25 temporary construction jobs and 10 full-time jobs. 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' seventh deal in Nebraska.
City Ventures' Rocket Carwash portfolio includes three existing locations with an additional five under construction. Slated for completion in November, the property is situated at Omaha's busy North 204th Street and West Dodge Road intersection at 787 N. 204th Avenue.
"After significant and ongoing efforts to get C-PACE running and well-received in Nebraska, it's gratifying to see momentum building," said Rob Shear, SVP – New Markets at Petros PACE Finance, who originated this and the other six Nebraska C-PACE deals. "The pipeline of potential projects continues to grow."
Legislatively approved in 36 states, C-PACE financing provides low-cost, upfront capital for energy-saving property enhancements and can be utilized by developers to replace expensive mezzanine debt or equity in their new construction and redevelopment projects.
About Petros PACE Finance
Petros PACE Finance, LLC is a 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.
Petros PACE Finance
SOURCE Petros PACE Finance, LLC