Nuveen Green Capital Closes First-Ever C-PACE Transaction in the State of New Mexico

$76.2 million in C-PACE capital provided to refinance luxury Auberge hotel, Bishop’s Lodge, in Santa Fe

Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions, announced today that it has closed on a $76.2 million financing package for Bishop’s Lodge Auberge Resort in Santa Fe, NM. The closing marks the first-ever C-PACE financed deal in the state of New Mexico.

Bishop’s Lodge is a luxury Auberge Resorts Collection hotel in northern Santa Fe, located in the foothills of the Sangre de Cristo Mountains. Originally opened in 1918, the top-rated resort was named the number one resort in the U.S. Mountain West by Conde Nast Traveler and also received a coveted World’s Best Travel + Leisure award.

The 98-key luxury hotel boasts 6,000 square feet of indoor meeting and banquet space, multiple restaurants and bars, an art gallery, a full-service spa, pool, as well as outdoor activities, such as fly fishing, hiking and horseback riding. Original portions of the historic property were constructed in the mid-1800s and early-1900s, and the hotel’s chapel was listed on the State Register of Cultural Properties in 1987 and the National Register of Historic Places in 1988.

C-PACE, which stands for Commercial Property Assessed Clean Energy, provides flexible financing solutions for new, ongoing, or recently completed commercial real estate projects. Available in 40 states and Washington D.C., C-PACE has grown in popularity in the commercial real estate market as an attractive financing mechanism.

C-PACE financing was used to recapitalize energy and water efficiency improvements that were part of the hotel’s $127.2 million renovation, which began in July of 2021, and will also be used toward several improvements, including a wastewater treatment facility, still to be made. The borrower was motivated to use C-PACE to refinance the existing senior loan on the property. The strategic use of C-PACE enables the asset to transition to more favorable financing terms, ensuring its continued profitability and growth.

Sean Ribble, Senior Director of Originations said, “We are proud to have partnered with the New Mexico Economic Development Department and Santa Fe County to recapitalize this historic, one-of-a-kind property, and to have closed the first C-PACE loan in the state of New Mexico. This significant milestone underscores the growing adoption of C-PACE, and we look forward to continuing this positive momentum in the New Mexico market. It’s exciting to see C-PACE continue to expand both in use and in deal-size, which can be attributed to the program’s flexibility as a creative and cost-effective financing solution to fund projects across all asset types, pre-, mid-, or post-construction.”

“Santa Fe County is a champion of sustainability,” said County Commission Chairman, Hank Hughes. “We are pleased to be closing on the first C-PACE loan in New Mexico and look forward to supporting other County businesses by helping them access favorable financing to grow their businesses in a sustainable way.”

“The rising borrowing and construction costs over the past three years creates challenges for those looking to make sustainability improvements in buildings,” said New Mexico Economic Development Department (EDD) Secretary Designate Rob Black. “C-PACE enables easier access to capital so commercial property owners can move forward today on projects that save them money, but also conserve water, reduce carbon, and benefit the entire community.”

About the New Mexico Economic Development Department (EDD)
The New Mexico Economic Development Department’s mission is to improve the lives of New Mexico families by increasing economic opportunities and providing a place for businesses to thrive.