Nuveen Green Capital closes first C-PACE financed project in the state of Alaska
Darien, CT (August 29, 2022) – Nuveen Green Capital, a leader in sustainable commercial real estate financing solutions, announced today that it has closed on a $680,000 retrofit of a four-story office building in Anchorage, AK. This marks the city and state’s first use of Commercial Property Assessed Clean Energy (C-PACE) financing, which is used to fund sustainability measures in commercial real estate projects.
The office building, known as the RIM Building, has been owned since 2002 by RIM Investments LLC. Located at 645 G Street in downtown Anchorage next to City Hall, the building is occupied by United Parcel Service, McGinley’s Bar & Restaurant, as well as RIM Design, RIM Investments, LLC, and RIM Architects.
The C-PACE program 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. Anchorage was the first local government in Alaska to adopt the program.
“Projects and investments like these demonstrate real progress in our city,” said Anchorage Mayor Dave Bronson. “We hope this is the first of many clean energy projects in Anchorage financed through this innovative program. It’s an exciting time to be in business!”
Through the new C-PACE financing, the retrofit of the RIM Building will incorporate energy-efficiency upgrades, including updates to the HVAC system which include “setback” thermostats that lower the temperature when the building is unoccupied and converting the air handling units from manual to electronic; all new LED lighting; a new hot water heater, as well as the installation of a new combined heat and power (CHP) system, which will reduce the building’s reliance on grid electricity. With the planned energy efficiency measures, RIM is projected to realize an estimated 42 percent reduction in energy costs annually.
“We are thrilled to see the C-PACE market continue to expand and are proud to finance the first C-PACE project in the state of Alaska. We look forward to funding many more projects in the state through this innovative financing mechanism that saves property owners money while supporting the local economy, as well as the environment,” said Aidan McLaughlin, Nuveen Green Capital Director of Originations.
Larry Cash, RIM Investment Owner and RIM Architects Founder, has been an advocate of C-PACE since the first legislation passed in 2017. “Working with Nuveen Green Capital to embark on this first-ever C-PACE financing in our state was a great experience as their team brought an array of expertise to help coordinate with the senior lender, Northrim Bank, the engineer, as well as with the program administrators,” said Larry Cash. “As the first C-PACE loan recipient in Anchorage, we want to inspire local businesses to reduce their carbon footprint. This program makes it easier for companies to upgrade their buildings to be more energy efficient.”
“This is a great example of a public-private partnership, as well as Alaska joining other states to use this innovative financing tool to fund economic growth and improve our building stock,” said Melanie Lucas-Conwell, Anchorage C-PACE Program Administrator. “It was also exciting to work with a local lender, Northrim, and a specialized firm, Nuveen Green Capital, to bring this first-in-the-state C-PACE loan to fruition. RIM Investments’ project is paving the way for future C-PACE projects in Alaska. This is good for our local economy, jobs and business growth.”
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 $1.3 trillion in assets under management as of September 30, 2021. 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 www.nuveen.com/greencapital.
RIM is the trusted design partner providing inspired solutions, enriching communities across continents. Together, we shape the future. With clients in mind, we bring superior quality, unwavering integrity, creative energy, authentic collaboration, and mutual prosperity. www.rimarchitects.com
About Northrim Bank
Northrim Bank is an Alaska-based community bank with 17 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Ketchikan, and Sitka, and loan production offices in Kodiak and Nome, serving approximately 90% of Alaska’s population; and an asset based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its signature “Superior Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company.
About Alaska C-PACE
The Alaska C-PACE Act was signed into law in August 2017, allowing local governments to create and manage C-PACE programs. In April 2021, the Municipality of Anchorage launched the first C-PACE program in the state and is working with other jurisdictions to set up similar C-PACE programs, using the statewide templates. More information can be found at www.muni.org/CPACE