Petros PACE Finance—which finances energy conservation measures for retrofits, redevelopments and new construction of commercial properties—and Lone Star PACE—which promotes Commercial Property Assessed Clean Energy, or C-PACE, financing in Texas—are spearheading the effort, according to a Dec. 18 news release.
What’s happening?
The 107,000-square-foot project is designed to help Denton and North Texas’s population and business growth with the large industrial space.
C-PACE financing will fund the energy-efficient buildings and their lighting systems, with the effort reducing energy by up to 37% annually, according to the release. This is designed to reduce operating costs while enhancing asset performance in the long run.
“This closing reflects the flexibility of CPACE financing as a tool to enhance the capital stack and improve overall project economics, while underscoring Petros’ role as a committed partner to property owners and developers,” said Andy Weber, VP Originations at Petros PACE Finance. “Our expertise allows us to structure solutions that meet specific financing needs and keep the process efficient from start to finish.”
A representative with Lone Star Pace told Community Impact the developer did not want to disclose the address or name of the location for the new Denton industrial complex at this time. A timeline for construction on the new project was not given.
The backstory
C-PACE is a financial service that allows property owners to fund energy efficiency, water conservation and renewable energy enhancements through a voluntary assessment of the property, according to the release.
The program has long-term financing with fixed rates that can reduce operating expenses, bring in more revenue and increase asset value. C-PACE financing can also be transferred if a property is sold, according to the release.
“C-PACE continues to be a powerful tool for new construction in high-growth markets like Denton,” Lone Star PACE President Lee McCormick said. “By supplementing the capital stack with low-cost, long-term, and flexible financing, developers can reduce their overall weighted cost of capital while investing in efficiency upgrades that benefit the asset and further the county’s sustainability goals.”
