Petros PACE Finance offers 100% financing for energy efficiency, water conservation, and renewable energy projects in commercial properties through Commercial Property Assessed Clean Energy (C-PACE) programs. This financing model addresses the high upfront costs of retrofits and new construction, enabling property owners to enhance sustainability while improving net operating income and property value.
Funding
$10M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Commercial property owners often face significant financial hurdles when trying to implement energy efficiency, water conservation, or renewable energy projects due to high upfront costs. Traditional financing options may not fully cover these projects, leaving a gap in the capital stack and hindering sustainability efforts.
Solution
Petros PACE Finance provides 100% financing for Commercial Property Assessed Clean Energy (C-PACE) eligible projects, enabling commercial property owners and developers to overcome financial barriers and improve building performance. C-PACE financing covers both hard and soft costs associated with energy efficiency, water conservation, renewable energy, and resiliency measures in new construction, retrofits, and redevelopments. This financing is structured as a fixed-rate, long-term loan that can extend up to 30 years, and it is secured by a property assessment, offering a non-recourse financing option with no ongoing covenants. By utilizing C-PACE, property owners can lower their blended cost of capital, increase net operating income, and enhance overall property value while promoting sustainable building practices. The financing can fund up to 35% LTV in the capital stacks of value-add investments and new construction.
Target Audience
Petros PACE Finance primarily serves commercial property owners, developers, and real estate investment trusts (REITs) seeking to finance energy efficiency, water conservation, and renewable energy projects through C-PACE programs.
Features
- Covers 100% of hard and soft costs associated with eligible projects.
- Offers fixed-rate financing with terms up to 30 years, aligning with program guidelines.
- Provides non-recourse financing without ongoing covenants.
- Can displace higher-cost mezzanine and equity capital.
- Facilitates sustainable building design and reduces utility and maintenance expenses.
- Allows recovery as an operating expense, improving cash flow.
- Supports economic development and urban revitalization.