Petros PACE Finance, LLC has closed two Commercial Property Assessed Clean Energy (C-PACE) transactions totaling $5.6 million with MH Hospitality, an Omaha, Nebraska developer, owner and manager of hospitality properties, to finance energy-saving upgrades in the construction of two Omaha hotels.
MH Hospitality secured $2.3 million in C-PACE financing for the recently completed construction of a 102-key Home 2 Suites by Hilton hotel at 4440 Douglas Street near the Nebraska Medical Center, in addition to $3.3 million in C-PACE financing for the construction of a 138-key dual-branded Home 2 Suites/Tru by Hilton hotel at 7011 S Hascall Street near the Creighton University Medical Center.
MH Hospitality will use the funds for sustainable design elements incorporated into the construction of the two properties, including high-efficiency HVAC, walls, roofing, windows, plumbing and LED lighting.
C-PACE is a relatively new financing tool for energy and water efficiency projects that has grown quickly in recent years. As a low-cost, long-term permanent financing product secured as a property tax assessment, it provides developers with an alternative to mezzanine debt and equity that lowers overall capital costs and allows them to invest in higher efficiency building designs.
With these closings, Petros has now funded 11 C-PACE projects in Nebraska. The City of Omaha serves as the administrator of the Eastern Nebraska Clean Energy Assessment District (ENCEAD) and Dicon Corporation served as the general contractor for the projects.
