Nuveen Green Capital Closes Largest-Ever C-PACE Transaction in Texas
Nuveen Green Capital – a leader in sustainable commercial real estate financing solutions – and the Texas PACE Authority – the administrator of 92 PACE programs in Texas – along with CBRE, the global leader in commercial real estate services and investments, announced today the closing of the Curio Collection by Hilton Hotel in San Antonio, TX. This closing marks Texas’ largest C-PACE (Commercial Property Assessed Clean Energy) transaction to date.
C-PACE is a creative financing mechanism that provides commercial property owners and developers access to low-cost, long-term, fixed-rate financing for energy efficiency, water conservation, renewable energy, and resiliency commercial real estate projects.
Located in downtown San Antonio's Hemisfair District – the redevelopment of the 1968 World’s Fair site - the Curio Collection by Hilton Hotel is situated on roughly 1.5 acres near the intersection of South Alamo and Market streets. The ground-up development of this 17-story, luxury, full-service hotel will feature 200 guest rooms, ballroom and meeting spaces, a signature restaurant and bar, café, a rooftop bar, an underground speakeasy bar, terrace pool with cabanas, a full-service spa, a fitness center, ground floor retail space, and a public garden. When complete, this hotel is slated to be the most luxurious in the greater-San Antonio area as the city continues its economic revival. Overland Partners Architects designed the full-service property, which will be owned and operated by Zachry Hospitality as a Curio Collection by Hilton.
The C-PACE proceeds will fund key sustainability measures including envelope, lighting, and plumbing.
The Texas PACE Authority administers Texas’ PACE statute by taking a market-based approach to energy finance and economic development by facilitating energy and water improvements that are both economically sound and environmentally friendly. The Texas PACE Act was passed by the Texas Legislature in 2013 and The Texas PACE Authority has facilitated $450 million in PACE financing throughout Texas.
“We are thrilled to hit the milestone of closing Texas’ largest C-PACE deal! In the current lending environment, C-PACE offers one of the most attractive forms of construction debt in the market. We are seeing larger and larger C-PACE deals come in as it is increasingly being used as the foundation of the construction capital stack. This Curio Collection by Hilton Hotel project is also a perfect example of how C-PACE financing can help buildings achieve sustainability goals, while also reducing operating expenses and helping to improve the local community and economy,” said Sean Ribble, Senior Director, Originations for Nuveen Green Capital.
“Nuveen Green Capital’s low-cost financing allowed Zachry Hospitality to maximize energy efficient and water conserving offerings,” said Tara Snowden, vice president of Public and Government Affairs. “With their assistance, Zachry will deliver a Curio Collection by Hilton Hotel which will be the most energy, water, and environmentally conscious property in downtown San Antonio.”
“Zachry’s commitment to energy and water efficient design enabled access to creative alternative TX-PACE financing for this hotel development. This project and the other San Antonio PACE projects total more than $83 million in new energy and water saving investment to date. Together, the City’s PACE projects created more than 1,000 clean energy jobs, annually reduce 5.3 million kWh hours of electricity use, save over 3 million gallons of water every year, and reduce more than 3.7 tones of Co2 annually. TPA is proud to help make this possible at no cost to taxpayers,” said Charlene Heydinger, Texas PACE Authority President.
“Serving as an anchor for the City’s premier urban park in the heart of downtown, this project will be transformative for San Antonio and the entire region. We are proud to partner with the Curio Collection by Hilton Hotel to facilitate conservation efficiencies and further the vision of this project. C-PACE is an invaluable tool being implemented in state-of-the-art-buildings and historic structure renovations, and we look forward to seeing more projects like this in the future,” said Diane Rath, Executive Director of the Alamo Area Council of Governments.
Construction of the 200-room hotel is expected to begin this fall with a target to open its doors to guests in late 2025.
About Texas PACE Authority
Texas PACE Authority is a nonprofit facilitating Property Assessed Clean Energy (PACE) projects. By administering a uniform PACE program, it ensures local governments establish an effective program affordably and quickly. Property owners can invest in efficient infrastructure through contractual assessments. Texas PACE Authority administers "PACE in a Box" programs in local jurisdictions, collaborating with stakeholders to expand the program and bring economically sound and environmentally friendly improvements to Texas. The nonprofit is funded through user fees and grants and has received several awards, including Outstanding Non-profit Organization and Access to Capital Champion. To learn more, visit: www.texaspaceauthority.org