Petros PACE Finance, LLC has closed a $4.2 million Commercial Property Assessed Clean Energy (C-PACE) transaction with REV Development, an owner, developer and operator of hospitality properties, to finance energy-saving upgrades in the conversion of a historic building into a boutique hotel in downtown Omaha, Nebraska.
The transaction will fund a portion of the renovation of Omaha’s century-old Logan Building. The seven-story building will be operated as a 90-key Hotel Indigo, with additional space for condos and ground-level retail that also includes a restaurant and speakeasy. The redevelopment project included energy-saving improvements to the property’s lighting, HVAC, windows, roofing and plumbing systems.
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 mezz and equity that lowers overall capital costs and allows them to invest in higher efficiency building designs.
This marks Petros’ ninth funding in Nebraska. The City of Omaha serves as the administrator of the Eastern Nebraska Clean Energy Assessment District and New Generation Construction is serving as the general contractor for the project.
Completion of construction is expected by July of 2020.