Nuveen Green Capital closes Pennsylvania’s largest C-PACE-financed project
Historic deal also marks the second multifamily C-PACE deal to close in Pennsylvania
Darien, CT (March 7, 2023) – Nuveen Green Capital, a leader in sustainable commercial real estate financing solutions, announced today that it closed on the largest C-PACE-financed deal in the state of Pennsylvania for $40M. The new, multifamily project, located at 499 North 5th Street in the Callowhill neighborhood of Philadelphia, is a planned 329-unit apartment, which will include 13.9K square feet of retail space.
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. This project is not only the largest C-PACE-financed deal in Pennsylvania, it also marks the second project to take advantage of recent amendments to the Pennsylvania C-PACE policy, allowing for multifamily properties to be eligible for the program.
Working in partnership with the Southern Land Company and the Philadelphia Energy Authority, Nuveen Green Capital provided $40M in C-PACE financing to fund extensive sustainability measures, which will include the building envelope (roofing, windows, and insulation), lighting, HVAC, as well as water conservation. These measures are projected to save 41,715,936 KWh and the property owners $4,286,261.19 over 30 years.
Once complete, the property will offer a fitness center, covered parking on the first floor, a community rooftop deck, as well as a business center and an array of workspaces.
“This project at 5th and Spring Garden could not have been financed without C-PACE. We are grateful to be benefiting from the newly expanded C-PACE program,” said Tim Downey, Southern Land Company Founder and CEO. “Energy efficiency is central to the design and functionality of this project. It truly matters to us that C-PACE financing is available to support our objective of designing and building better for the long-term. Both the Philadelphia Energy Authority and Nuveen Green Capital have made this process easy to navigate and clearly beneficial.”
Nuveen Green Capital Originations Director, Shelah Wallace, said,
“We could not be more thrilled to have worked on this historic deal with Southern Land Company and the Philadelphia Energy Authority. Not only is it the largest, and second-ever multifamily project to be funded through C-PACE, it is showing CRE developers and property owners the power of this financing mechanism. We look forward to closing many more deals in the great state of Pennsylvania!”
Senate Bill 635 expanded eligibility for C-PACE financing to include multifamily commercial buildings, indoor air quality and building resiliency improvements. The bill was signed by Governor Wolf in July of 2022 and took effect in Philadelphia in September of 2022. Act 43 of 2022 expands on Act 30 of 2018, which first enabled C-PACE financing in Pennsylvania for commercial buildings. Sponsored by Senator Yudichak, the Act extends eligibility to multifamily commercial buildings of 5 or more units, as well as indoor air quality and building resiliency improvements. Representative Heffley sponsored the House companion bill, HB 1760.
“We are grateful to Senator Yudichak and Representative Heffley for their sponsorship of expansion,” said Emily Schapira, President & CEO of the Philadelphia Energy Authority, Philadelphia’s C-PACE Administrator. “This project is evidence of the importance of the expansion.”
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