Nuveen Green Capital closes first C-PACE-financed multifamily project in Pennsylvania
Darien, CT (February 23, 2023) – Nuveen Green Capital, a leader in sustainable commercial real estate financing solutions, announced today that it closed on the first C-PACE-financed multifamily deal in the state of Pennsylvania. The project, Somerset Station, is a planned 220-unit apartment complex located at 2200-50 East Somerset Street in the Port Richmond neighborhood of Philadelphia.
Commercial Property Assessed Clean Energy (C-PACE) provides commercial property owners and developers access to low-cost, long-term, fixed-rate capital for energy efficiency, water conservation, and renewable energy improvements. The Pennsylvania C-PACE program, in place since 2018, was amended this past September 2022 to incorporate multifamily rental and mixed-use properties, as well as broaden qualifying measures to include resiliency and indoor air-quality related improvements through the Pennsylvania SB635 bill.
Somerset Station marks the first project in Pennsylvania to take advantage of the recent amendments to the policy, and the energy-efficient new development will provide significant housing options for Philadelphia residents. Working in partnership with the RiverWards Group (RWG) and the Philadelphia Energy Authority, Nuveen Green Capital provided nearly $18M in C-PACE financing to fund extensive sustainability measures for the 12-building residential complex, including the building envelope (roofing, windows, and insulation), lighting, as well as water conservation. These measures are projected to save 20,554,425 KWh and $2,253,585 over 30 years.
Once complete, the complex will contain 12 residential buildings, one of which will be six stories in height and contain most of the apartment units, as well as 11 triplexes containing 33 two-bedroom units. In addition, the complex will offer a total of 159,600 square feet of rentable area, and ample onsite parking for 118 vehicles.
“I am thrilled that the first energy efficient C-PACE multifamily project in Pennsylvania is in Philadelphia’s 1st Council District,” said Councilmember Mark Squilla, 1st District. “This project adds to the $100 million dollars of private investment C-PACE has attracted to improve building performance, save money, and create jobs in Philadelphia and across Pennsylvania.”
Added City Council President Darrell Clarke, “C-PACE financing rewards projects like this development that go above and beyond in cost-saving and environmentally-friendly energy and water efficiency measures by providing competitive financing rates. These projects create jobs, which is at the core of everything we do to make Philadelphia a thriving and healthy city.”
Nuveen Green Capital Originations Director, Shelah Wallace said, “Nuveen Green Capital is thrilled to be able to help RiverWards reduce their equity requirement by utilizing our C-PACE product. We are also very proud to have partnered with Citizens Bank to make this funding possible, as they recognized the benefits of having C-PACE in the capital stack. We are delighted to be the first C-PACE capital provider to finance a multifamily project in Pennsylvania, and we look forward to closing many more!”
“We are grateful to Senator Yudichak and Representative Heffley for their sponsorship of expansion bills SB 635 and HB 1670, respectively,” said Emily Schapira, President & CEO of the Philadelphia Energy Authority, Philadelphia’s C-PACE Administrator. “This expansion provides additional opportunities to finance critical new and existing building resilience upgrades, help mitigate the spread of airborne contaminants in indoor environments, and create good paying jobs across Pennsylvania.”
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for $1T+ in assets under management1. Established in 2015 by the C-PACE industry’s founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water and resiliency performance of their property. For more information, visit nuveen.com/greencapital