Petros PACE Finance Provides $5.6 million in C-PACE Financing for Hotels in Omaha, Nebraska
AUSTIN, Texas, Feb. 19, 2020 /PRNewswire/ — Petros PACE Finance, LLC (www.petros-pace.com) has closed two Commercial Property Assessed Clean Energy (C-PACE) transactions totaling $5.6 million with MH Hospitality, an Omaha, Nebraska developer, owner and manager of hospitality properties, to finance energy-saving upgrades in the construction of two Omaha hotels.
MH Hospitality secured $2.3 million in C-PACE financing for the recently completed construction of a 102-key Home 2 Suites by Hilton hotel at 4440 Douglas Street near the Nebraska Medical Center, in addition to $3.3 million in C-PACE financing for the construction of a 138-key dual-branded Home 2 Suites / Tru by Hilton hotel at 7011 S Hascall Street near the Creighton University Medical Center.
“Nebraska is one of the fastest growing C-PACE markets, where more and more real estate developers are seeking to combine C-PACE with other forms of financing to efficiently fill their capital stacks,” said Mansoor Ghori, Petros PACE Finance CEO. “We’ve closed multiple deals with MH Hospitality now and look forward to helping more projects deliver environmental and economic returns in the state.”
MH Hospitality will use the funds for sustainable design elements incorporated into the construction of the two properties, including high-efficiency HVAC, walls, roofing, windows, plumbing, and LED lighting.
“C-PACE financing provided private capital to help transform the previously abandoned and underutilized buildings, demonstrating how C-PACE supports cities in their efforts to revitalize urban cores,” said Rob Shear, SVP – New Markets at Petros PACE Finance.
C-PACE is a relatively new financing tool for energy and water efficiency projects that has grown quickly in recent years. As a low-cost, long-term permanent financing product secured as a property tax assessment, it provides developers with an alternative to mezzanine debt and equity that lowers overall capital costs and allows them to invest in higher efficiency building designs.
“C-PACE works well alongside our construction loan and Tax Increment Financing (TIF) to provide stability for our capital stack, in addition to paying for sustainable building features,” said Dan Marak, owner of MH Hospitality. “Petros worked diligently to integrate C-PACE with the other capital sources for an efficient close. We are glad to have them as a trusted partner.”
With these closings, Petros has now funded eleven C-PACE projects in Nebraska. The City of Omaha serves as the administrator of the Eastern Nebraska Clean Energy Assessment District (ENCEAD) and Dicon Corporation served as the general contractor for the projects.
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/.
Originally published on Cision PR Newswire