AUSTIN, Texas, Nov. 16, 2017 /PRNewswire/ -- Petros PACE Finance has closed on a $1.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction that will fund significant energy efficiency upgrades to a Houston office building that are projected to save the owner more than $3.66 million over the term of the 20-year loan.
Property owner 1225 North Loop Investments, Inc. plans to install new chillers with associated water pumps, variable speed drives and air handlers, a building control system and LED lighting in the 200,400-square foot building 1225 North Loop West.
The project will be financed without any out-of-pocket expense to the investment group through the City of Houston commercial PACE program, which allows commercial property owners to retrofit their buildings with renewable energy and energy and water efficient systems by borrowing money from a private lender and repaying the loan via a special assessment on their local property tax.
"Outdated mechanical and building systems result in higher utility and operating costs for landlords and tenants, but financing energy efficiency upgrades is often a challenge for owners of older buildings," said Petros CEO Mansoor Ghori. "This C-PACE loan will finance the improvements to 1225 North Loop West at no cost to the owner while spreading the cost out over many years with the certainty of a fixed-rate loan."
"PACE introduces a new solution for building upgrades, at no additional cost to the owner," said Seth Eslami, vice president of Stellar International, which manages the property. "The savings in energy costs will pay for the upgrades while leading the path to a greener future."
"PACE Houston is pleased to have facilitated the first multi-tenant office building PACE project in the State of Texas," said PACE Houston Energy Efficiency Solutions President Tim Crockett. "Petros showed its substantial expertise throughout the underwriting process of this project. We believe this project will demonstrate the huge value PACE can provide a building owner and thus lead to more owners using this powerful tool."
Petros is one of the first specialty finance firms in the U.S. to dedicate all of its resources to the commercial PACE market nationwide. This is the eighth C-PACE loan that Petros has funded in Texas and its second in Houston.