First C-PACE Deal Closes in Washington, D.C.
- Jul 27, 2017
Petros PACE Finance closed its first Commercial Property Assessed Clean Energy (C-PACE) deal in Washington, D.C. The Austin-based firm is a specialty finance firm that focuses its resources on the commercial PACE market nationwide.
The beneficiary of the $531,350 loan is the District of Columbia Baptist Convention, which will use the funds for cost saving energy retrofits at the 58-year-old property it owns at 4025 9th St. SE. The D.C. Baptist Convention will save more than $800,000 during the life of the project by installing new HVAC units, LED lighting and windows, along with upgraded electrical infrastructure and building envelope improvements. In addition, the investment will help create a more comfortable learning environment for the students at The Early Childhood Academy, which leases most of the 15,000-square-foot building.
The project will be financed through the D.C. PACE program, which allows commercial property owners to upgrade their buildings with renewable energy and energy-efficient systems by borrowing money from a private lender. The C-PACE loan would then be repaid via a special assessment on the local property tax, without any out-of-pocket expense for the D.C. Baptist Convention.
PACE financing is currently available in 32 states and Washington, D.C. Its benefits include:
- up to 100 percent financing for commercial property owners to fund energy-efficient programs that deliver energy cost savings through the life of the loan;
- rendering a private loan into a property tax obligation and enabling lenders to grant longer terms of up to 30 years or the life of the upgrades;
- allowing commercial property owners to increase the value of their existing buildings by reducing total energy costs and increasing net operating income.
“Petros PACE is excited to close our first deal in the Washington, D.C. area as we continue to expand nationwide,” Petros CEO Mansoor Ghori said in prepared remarks. “Energy retrofits can be difficult for any property owner to finance, and that’s especially true for non-profits. This loan will enable the D.C. Baptist Convention to invest in long-term energy savings without any negative impact on its budget or ability to carry out its mission.”
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