Nuveen Green Capital closes $90.4 million in C-PACE financing to recapitalize the Thompson and tommie Hollywood in Los Angeles, CA

Nuveen Green Capital (“NGC”), a leader in sustainable commercial real estate financing solutions, announced today that it has closed on both the Thompson Hollywood and the tommie Hollywood in Los Angeles, California, for a combined total of $90.4 million in C-PACE financing to recapitalize both properties.

C-PACE (Commercial Property Assessed Clean Energy) is a flexible financing mechanism that provides commercial property owners and developers access to low-cost, long-term, fixed-rate financing for properties under construction, recently completed, or undergoing rehab. These improvements are centered around providing energy efficiency, water conservation, renewable energy, and resiliency measures to these commercial real estate projects. C-PACE, available in 38 states and Washington D.C., has grown in popularity in the commercial real estate industry as an attractive financing solution, particularly in a capital constrained market.

Currently part of the Hyatt brand family, both properties are adjacent to one another in the heart of Hollywood, located minutes from Sunset Boulevard, Vine Street, and Hollywood Boulevard. The Thompson Hollywood is a 190-key luxury hotel featuring 16 luxury suites, meeting and event space, the well-known rooftop lounge Bar Lis, and The Terrace restaurant, as well as a pool deck with sweeping views of Los Angeles and the Hollywood sign. The sister property, the tommie Hollywood is a 212-key, upscale boutique hotel, featuring a lobby café, fitness center, signature rooftop Mexican restaurant - Ka’teen, as well as the Desert 5 Spot rooftop bar and pool deck, which provide panoramic city views.

Due to the existing improvements and the buildings energy efficient construction profiles, C-PACE proceeds were able to be used to refinance the existing note on both assets. Through Nuveen Green Capital’s C-PACE financing, Machine Investment Group and Taconic Capital Advisors (collectively the “Sponsor”) was able to dramatically lower their average cost of capital for these projects while simultaneously allowing for the continued success of the business plan.

As part of the recapitalization for the Thompson Hollywood, Nuveen Green Capital provided the Sponsor with $49.0 million in C-PACE financing. For the tommie Hollywood, Nuveen Green Capital provided the Sponsor with $41.4 million in C-PACE financing.

Cory Jubran, Senior Director, Originations, Nuveen Green Capital said, “We were thrilled to partner with Machine Investment Group to provide C-PACE financing to recapitalize these two exceptional sister properties. As the C-PACE industry continues to grow exponentially, this deal underscores its efficacy - and how vital it has become, particularly in the current lending environment, as an alternate form of cost-efficient debt for owners and developers to fund projects pre-, mid-, or post- construction.”

“C-PACE was a creative way to reduce our cost of capital and we appreciate Nuveen Green Capital’s solutions-oriented approach to help us optimize our capital structure,” said Michael Librett, Managing Director, Machine investment Group.

California’s C-PACE program allows for property owners to employ C-PACE financing retroactively after a construction project or renovation has been completed within a lookback period of up to three years post-completion, returning capital back to property owners. As a recapitalization tool, the proceeds from C-PACE can be deployed to pay down or retire more expensive debt, cover project cost overruns, or to fund working capital.

About Machine Investment Group

Founded by former senior executives from Garrison Investment Group, Machine Investment Group is a real estate investment platform focused on opportunistic, distressed and special situations across the United States. Machine’s strict risk discipline, institutional operating processes and well-developed sourcing network has been cycle-tested and is designed to deliver consistent, opportunistic returns while minimizing losses.

About Taconic Capital Advisors

Taconic Capital Advisors is a global institutional investment firm that pursues an event-driven, multi-strategy investment approach designed to generate strong, risk-adjusted returns over multiple market cycles. Taconic was founded in 1999 by former Goldman Sachs partners Frank Brosens and Ken Brody. The company has roughly $7 billion of total assets under management with offices in New York and London and more than 100 employees worldwide. Taconic’s series of closed-ended real estate funds are fully discretionary and have received over $1 billion in capital commitments. Investments to date across all Taconic funds total over $3 billion of gross asset value across roughly 175 distinct transactions.