It’s been a busy year so far at Petros. Over the past few months, demand for C-PACE has continued to grow, despite the economic downturn. In Asset Securitization Report’s May cover story, I explained how the tightening lending environment is driving more borrowers to seek C-PACE as an alternative source of capital for funding construction and shoring up capital stacks. A DBRS Morningstar report published in June also highlighted a positive outlook for C-PACE assets, despite ongoing economic effects of COVID-19 on the U.S. economy.
At Petros, our pipeline has doubled since the beginning of the year and we have more deals expected to close in the coming months. We have recently closed a number of C-PACE transactions, including new construction projects for a hotel in Florida and a senior living facility in Ohio.
2020 is also shaping up to be an active year for expanding the C-PACE market footprint. New markets from coast to coast are progressing toward active C-PACE programs. Washington State signed C-PACE enabling legislation into law this spring and we are hopeful an administrator model will be running to allow financings by the end of the year. C-PACE recently launched in Massachusetts, while, in New Jersey, C-PACE enabling legislation recently passed in one house of the state’s legislature. Additionally, we are encouraged by ongoing efforts to get New York City’s C-PACE program operational soon. As I shared in a Commercial Property Executive article in May, we expect New York to become a huge market for C-PACE.
While states across the U.S. are beginning to reopen their economies, many unknowns remain. At Petros, we are working diligently to find new ways we can provide solutions to aid in economic recovery. To that end, we are developing and preparing to launch new financing products that will allow borrowers to plan for both the short-term and long-term and that will complement our existing C-PACE offering. We will have more news to share soon about our new offerings.
We are also expanding our firm’s team to accommodate our growth. Petros recently welcomed Connor Murch as Vice President of Business Development, along with John Gamm and Katy Crocker as Vice Presidents of Legal. Their combined market knowledge and experience will enable us to maintain our high level of execution as the market grows.
We are proud that Petros can play a role in helping the commercial real estate industry move forward at this critical time in the economy. We understand that circumstances are changing rapidly. We are grateful for our customers and everyone we work with as we continue to provide efficient capital solutions that enable development. What we’ve been able to build so far is impressive and it would not be possible without so many hard-working partners and customers. We will continue to build on that this year and beyond!
CEO, Petros PACE Finance