Petros Projects Crossing $2 Billion Milestone in 2023 As Activity and Size of Transactions Accelerate
Broader Acceptance from Property Owners And Sustainability Tailwinds Transform C-PACE from Niche to Mainstream Financing Tool
AUSTIN, Texas, Nov. 17, 2022 /PRNewswire/ -- Petros PACE Finance (Petros), the largest C-PACE provider in the country and a leader in innovative and structured finance, today announced that it has significantly eclipsed $1 billion in directly originated and balance-sheet funded C-PACE transactions since inception in 2016 and also expects to surpass the $2 billion mark of directly originated and funded C-PACE financings in calendar 2023, as awareness, activity and size of transactions accelerate rapidly.
Mansoor Ghori, CEO and co-founder of Petros PACE Finance stated, "Transcending the $1 billion threshold is an important milestone, not just for Petros, but for property owners, developers, sponsors and communities where we have been able to facilitate job growth, economic expansion and environmental stewardship. What was once a niche financing mechanism is now becoming accepted across the country by some of the largest real estate owners and financial institutions as a mainstream and effective means to drive investment, achieve ESG goals and enhance cash flow across all commercial real estate asset types.
"The C-PACE industry is at a core inflection point, as the level of activity and size of transactions rapidly increase. As the industry leader, our success is testament to a number of core competitive differentiators: deep and sustained owned relationships, a strong and flexible balance sheet, the certainty of close, an experienced and seasoned team and the technical skill to deliver innovative solutions for some of the most complex and esoteric real estate projects. We look forward to the next year and beyond, as more developers and property owners see the value in enhanced cash flow, increased ROI and equally as important, the ability to build environmentally sustainable real estate assets increasingly demanded by state and local governments, tenants and consumers," Mr. Ghori concluded.
Jim Stanislaus, CFO and co-founder of Petros PACE Finance said, "This meaningful accomplishment is a clear demonstration of our commitment to financial discipline, the impact and leverage derived from our strong and flexible balance sheet and our deep roots in structuring complex financing transactions. Developers, property owners, sponsors, intermediaries and local and state officials all understand and appreciate our consistent promise of certainty to close, in any circumstance. As the industry expands rapidly, driven by larger transactions, Petros will be able to capture market share as C-PACE financing assumes a larger role in capital stack."
Last month, Petros announced it closed on an industry record $153 million C-PACE financing as part of the $820 million, 580-acre world-class development, Black Desert Resort Project in Ivins, Utah. The development is currently under construction and upon completion will be the largest mixed use and hospitality offering in the state of Utah.
Other significant Petros C-PACE funded projects include an $89 million transaction for the iconic 111 Wall Street building in lower Manhattan in June 2021. This deal – which at the time was the single largest ever C-PACE transaction, was complete as part of New York City's recently launched C-PACE program and part of New York City's Climate Mobilization Act of 2019.
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 and meet environmental, social and governance (ESG) goals. The company is a platform portfolio investment of Apollo Global Management. Its leadership team has decades of executive-level experience in private credit 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.
SOURCE Petros PACE Finance, LLC