By Ariela Moraru
Petros PACE Finance and loan originator CleanFund Commercial PACE Capital Inc. have closed on the largest Commercial Property Assessed Clean Energy (C-PACE) transaction ever completed in the C-PACE market through Renew Financial’s C-PACE platform. Verity Health System will use the $40 million loan to make mandatory seismic upgrades to Seton Medical Center, an acute-care hospital in Daly City, Calif. Petros contributed half of the loan.
“This is a milestone event in our industry,” said Petros CEO Mansoor Ghori in prepared remarks. “This transaction breaks down barriers and sets a precedent on how C-PACE financing can be used for much larger and more ambitious projects than C-PACE funding has traditionally enabled. In this case, we’re funding a critical seismic project that will allow Seton to continue serving the San Mateo County community for decades to come, and we’re doing it in a way that minimizes additional constraints on the hospital’s budget since it is being financed over 30 years.”
The California Attorney General requires the seismic upgrades to be completed by 2020. The 11-story, 357-bed medical center is located at 1900 Sullivan Ave., just off Interstate 280. Verity Health System will be spared any expenses, thanks to the CalFirst PACE program. The program helps commercial property owners in California make energy efficiency, health and safety retrofits with funding from private lenders and repay it via a special assessment on their local property tax bill. If the property chnages hands before the loan term, the assessment obligation automatically transfers to the next owner. Enabled by state legislation, PACE programs are currently up and running in 32 states and Washington D.C.
Image courtesy of Nick Drysdale via Google Street View