28 Sep 2021
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Greenworks Lending from Nuveen Closes its First New York City C-PACE Project on TIAA Headquarters at 730 Third Avenue
Greenworks Lending from Nuveen, the nation’s leading C-PACE capital provider dedicated to funding energy performance-enhancing commercial, multi-family and non-profit real estate projects, announced today that it has closed its first C-PACE project in New York City under the City’s newly launched NYC Accelerator PACE Financing program at 730 Third Avenue in Midtown Manhattan, which serves as the headquarters for Nuveen and TIAA. Nuveen Real Estate is leading the $120 million transformation of the building with development advisor Taconic Partners into a model post-pandemic work environment.
C-PACE provides property owners and developers access to low-cost, long-term, fixed-rate financing for energy efficiency, water conservation, resiliency, and renewable energy projects. The NYC Accelerator PACE Financing program was established to provide a clean energy financing solution to support developers and property owners as they improve their buildings to meet the targets set forth in Local Law 97 (2019) of New York City’s Climate Mobilization Act – the most ambitious climate policy in the country.
The headquarters for TIAA and Nuveen, at 730 Third Avenue, is one of the first properties in the City to take advantage of the newly launched C-PACE program. Over $28M in C-PACE financing will support a deep renovation of the property, which includes multiple energy efficient measures – most notably, View Glass, which are smart windows that automatically adjust in response to the sun to improve human health and productivity, save energy, and increase asset value. C-PACE will also finance lighting upgrades and roof insulation.
"As the country’s largest real estate market with the nation’s most stringent carbon emission reduction targets, there are endless opportunities for C-PACE to support property owners and developers in meeting the city’s laudable climate goals,” said Jessica Bailey of Greenworks Lending from Nuveen. “C-PACE allows property owners to realize significant energy savings and fill gaps in development capital stacks. It’s a big win for commercial property owners and for the environment – as the carbon reduction targets go into effect in NYC, C-PACE is the best way to meet them while protecting the bottom line."
“We have committed to making our $133 billion global property portfolio operationally net zero carbon by 2040 and C-PACE is an innovative financing mechanism to help us achieve this goal,” said Brian Wallick, Director - New York Office Investments at Nuveen Real Estate. “Our New York headquarters will be an example of cutting-edge energy efficiency, demonstrating how improved sustainability equals enhanced asset value.”
The C-PACE-funded measures are expected to also help 730 Third Avenue avoid nearly $100,000 in annual fines under the Climate Mobilization Act’s Local Law 97 (2019), New York City’s ambitious new greenhouse gas intensity limits.Currently, there are an estimated 50,000 buildings1 across New York City facing the emissions cap targets of Local Law 97, resulting in an expected $80 billion in investment needed to comply. As a result, it is anticipated that New York City will quickly become the largest C-PACE market in the country.
"Decarbonizing New York City's one million buildings is key to curbing the worst impact of climate change within our five boroughs," said Ben Furnas, Director of the Mayor's Office of Climate and Sustainability. "Congratulations to Greenworks Lending from Nuveen for closing one of the first NYC Accelerator C-PACE deals to reduce carbon emissions, make 730 Third Avenue more comfortable for tenants, and meet the City's ambitious targets under Local Law 97."
The broader transformation of 730 Third, which is just a five-minute walk from Grand Central Terminal, will also include a host of world-class amenities, including:
- A 7,000-square-foot landscaped and furnished terrace on the 22nd floor with plentiful outdoor amenity space for tenants with a wet bar and spectacular Midtown views. The building also includes 2 private terraces directly connected to available spaces on floors 13 and 19.
- A 9,000-square-foot food hall featuring rotating vendors, a central counter staffed with a barista, self-serve stations and grab-and-go options, as well as a centralized pickup for outside delivery services. The food hall will cater to the flexible work schedules of building tenants and is available for after-hours events. It will also offer in-house catering for accelerated productivity
- An 8,000-square-foot staffed fitness center, fully equipped with state-of- the-art equipment and facilities, including Peloton bikes, classroom space and locker rooms with showers.
- The second floor features 30,000 square feet of additional amenities, a 6,000-square-foot sky lounge featuring touchdown areas; a double-height balcony overlooking the main lobby; and in-house catering for accelerated productivity, as well as a full-time concierge desk and a 5,000-square-foot modular conference center. Tenants can also take advantage of bike storage on the building’s lower level.A new double-height lobby featuring two striking large-scale paintings by Los Angeles-based artist Eamon Ore-Giron, titled Infinite Regress CXIV and Infinite Regress CXV. The lobby also features 12 fully upgraded elevators, four of which serve the 22nd floor roof terrace.
About Greenworks Lending from Nuveen
Greenworks Lending from Nuveen is the largest provider of Commercial Property Assessed Clean Energy (C-PACE) financing in the country. Led by several of the industry’s founding policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial real estate through C-PACE. Greenworks has provided financing to hundreds of commercial properties and is active in more than 25 states, making clean energy a smart financial decision for commercial property owners and developers nationwide. For more information, visit www.greenworkslending.com.
1 Urban Green Council