PETROS PACE FINANCE CLOSES FIFTH MICHIGAN TRANSACTION
Project enabled by $300,000 PACE loan expected to save owner more than $600,000
Austin, TEXAS (January 5, 2017) — Petros PACE Finance, LLC has completed a $300,000 Property Assessed Clean Energy (PACE) transaction with a Michigan multifamily property owner that will fund significant energy efficiency upgrades to the 88-year-old New Amadore Apartments.
Property owner Niche Properties plans to replace all 281 original single pane windows in the 63-unit apartment building, greatly improving the property’s energy efficiency while also preserving its historic appearance. Through reduced utility costs and depreciation benefits, the project is expected to save $610,000 over the course of the 20-year loan.
The project will be financed without any out-of-pocket expense to Niche Properties through the Lean & Green Michigan PACE program, which allows commercial property owners to retrofit their buildings with renewable energy and energy efficient systems by borrowing money from a private lender and repaying the loan via a special assessment on their local property tax.
“PACE financing is really taking off in Michigan as more and more property owners learn how incredibly easy and affordable the Lean & Green Michigan PACE program makes investing in energy efficiency,” said Petros CEO Mansoor Ghori. “With the cost of this investment spread out over 20 years, the savings will exceed the cost of the annual payments from the very first year.”
Niche Properties owner Maroo Nahikian said the New Amadore Apartments is an architectural gem that deserves to be preserved.
“It’s great that the PACE program could fill a financial void that allows us to make this special historic property an efficient living solution for years to come,” Nahikian said. “We are proud to be the first Saginaw property owner to use this program to bring efficiencies to older structures, and hopefully we won’t be the last.”
Like all PACE loans, repayment will be facilitated through the county property tax assessment process. Voluntary assessments are placed on the building owner’s property tax bill, and the assessment is repaid over an agreed term of up to 25 years.
If the property is sold, the subsequent owner picks up the remaining assessment obligation while also reaping the benefits of the energy efficiency measures that were installed.
“The New Amadore project is noteworthy for so many reasons,” commented Andy Levin, President of the Lean & Green Michigan PACE program. “Not only is it the first PACE project in Saginaw County and our first on a structure in an historic district, but it’s going to have such an immediate positive impact on people’s lives. The New Amadore apartments will go from drafty to cozy very quickly, and everyone involved will save money.”
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 fifth PACE loan that Petros has completed in Michigan.
Currently available in 32 states and Washington, D.C., PACE financing makes comprehensive clean energy projects possible on a broader scale for the first time by:
- Providing up to 100 percent financing to commercial property owners in order to fund energy efficient projects that deliver deep 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 useful 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.
For more information visit http://www.petros-pace.com.
Petros PACE Finance
Austin-based Petros PACE Finance, LLC is solely dedicated to providing long-term PACE financing to U.S. commercial property owners seeking to increase their property values and reduce their carbon footprint. The principals of Petros PACE Finance – Mansoor Ghori, Tommy Deavenport and Jim Stanislaus – have substantial experience in structured finance and lending, and bring significant value to all parties involved in the transactions in which they participate.