Joint Financing Boosts Development for Petros Pace Finance and MidCap Collaboration
- Petros Pace Finance and MidCap Financial completed their first joint unitranche financing for a Knoxville AC Hotel project.
- The collaboration simplifies financing for developers by allowing joint underwriting and structuring, ensuring quick, flexible solutions.
- Petros aims to expand C-PACE offerings, emphasizing efficiency and sustainability in financing for construction projects.
Innovative Financing Strategy Enhances Development Opportunities for Petros Pace Finance
Petros Pace Finance (Petros) and MidCap Financial recently announce a pivotal achievement in structured finance with their first joint unitranche financing transaction. This collaboration facilitates a streamlined financial solution for developers, evidenced by their provision of $39 million towards the construction of an AC Hotel by Marriott in Knoxville, Tennessee, developed by Vector Hospitality. The financing includes $15 million in C-PACE funding from Petros and $24 million in senior debt from MidCap, creating an efficient, single-source funding model that underscores the companies' commitment to enhancing the development landscape.
The significance of this financing arrangement lies in its ability to simplify the deal process for developers. By allowing both lenders to collaborate on underwriting, sizing, and structuring the project, Petros and MidCap aim to deliver flexible and quick financing solutions tailored to the developers' needs. Kevin McMeen, Petros President and CEO, emphasizes that this innovative approach solidifies their role as a partner in the development process. Richard Graham, Managing Director at MidCap, similarly points out the efficiencies gained through the unitranche structure, which can significantly benefit borrowers by reducing the complexity typically associated with securing financing.
This transaction not only reflects a strategic partnership between Petros and MidCap but also sets the stage for future collaborations that could further enhance their market offerings. The AC Hotel will feature 161 keys and is strategically positioned to serve the lodging demand from the nearby University of Tennessee. Aman Patel, President of Vector Hospitality, commends the seamless transaction experience provided by both firms, highlighting their capability to deliver a high-quality hospitality project. This development underscores the growing trend of integrated financing solutions in the construction and real estate sectors.
In addition to their innovative financing solutions, Petros continues to focus on expanding its C-PACE offerings, which have become increasingly vital in sustainable construction practices. The collaboration with MidCap signifies a commitment to providing developers with robust financial tools that align with industry demands for efficiency and sustainability.
Stoner's Pizza Joint also announces a creative initiative by introducing a limited-time Pickle Pizza in celebration of National Pickle Month. This unique offering combines crispy bacon, gooey mozzarella cheese, and tangy dill pickles, complemented by a creamy ranch drizzle. Customers can enjoy this flavor-packed pizza throughout July, showcasing the company's dedication to culinary innovation and customer engagement, as they continue to expand their footprint across the Southeast and beyond.
