Petros provides $718,000 in C-PACE funding for energy upgrades to Michigan commercial building
Written By: Stratton Report
January 10, 2017
On January 10, Petros PACE Finance, LLC announced it had completed a $718,000 PACE transaction with Delta Business Center, LLC that will fund significant energy efficiency upgrades to a 36-year-old Michigan commercial facility.
Petros noted that the transaction was conducted 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.
According to Petros, the property owner plans to install a new HVAC system, LED lighting, high-efficiency fans, modern building automation system and skylights in its Delta Business Center, a 93,000 square foot light industrial building that previously housed the Lansing State Journal printing and distribution facility.
Per the C-PACE lender, the investment will generate more than $1.8 million in energy savings over the 20-year life of the loan and will be financed without any out-of-pocket expense to the borrower Petros CEO Mansoor Ghori noted:
“The PACE program makes it incredibly easy for property owners to invest in energy efficiency by making it a cash flow positive project for the borrower. With the cost of this investment spread out over two decades, the energy savings will help attract users and tenants into this obsolete and essentially vacant facility.”
Petros emphasized that voluntary assessments had been placed on the building owner’s property tax bill, and the assessment will be repaid over an agreed term of up to 20 years. The assessment obligation automatically transfers to the next owner if the property is sold before the loan is repaid.
Andrew Levin, president of the Lean & Green Michigan PACE program noted: “The commercial PACE market is really starting to take off in Michigan as we enter 2017.”