The Opening Aperture to Sophisticated Financing Approaches – How Can I Utilize C-PACE?

The defining themes of 2026, including continued rate and geopolitical uncertainty and the looming maturity wall, have contributed to a meaningful recalibration in the commercial real estate finance market.

As traditional lending constraints persist, the aperture has widened for commercial property owners, developers, and investors seeking innovative capital structures. Among these, C-PACE, offered by Nuveen Green Capital ("NGC"), has taken center stage, emerging as an attractive financing platform with the ability to provide flexible and creative structures, not only for mid-market projects, but also for complex, large-scale projects with sophisticated sponsors.

Below, our Originations team leaders dig deeper into the questions we frequently hear from sponsors and capital partners interested in using C-PACE financing to capitalize their projects as they navigate today's market.

Sean Ribble – Mountain West / Texas

What is Nuveen Green Capital known for?

Throughout my tenure at NGC, we have always been known as a leader in execution and transparency. This reputation stems from the early days of our organization with the first successful securitization³ through to today where we stand out as one of the largest direct capital provider in the space, based on transaction number and gross originations.

How can C-PACE fit into my capital stack?

C-PACE can help fit into a capital stack when there is a gap in financing where there may be lending/leverage constraints from the senior lender, or other creative capital sources. Secondly, our platform can be accretive to help blend down the cost of capital alongside more expensive traditional debt options, making for a more accretive holistic capital stack.

Chris Ellis – Midwest

Is it challenging to find the right senior lending partner?

It is not as challenging to find the right senior lending partner as it was years ago. C-PACE has become much more mainstream, and we have a growing list of over 300 lenders that have consented to C-PACE. This increase in consent is driven largely by education: senior lenders have come to understand that C-PACE is non-accelerating, and there are numerous risk mitigants that can be structured in to give them additional comfort. We also underwrite to LTV, LTC, and DSCR ratios that give both the senior lender and us confidence that the loan will be repaid. In addition, the competitive landscape has caused an increasing number of banks to consent rather than risk losing market share. For example, if Banks "A" and "B" consent to C-PACE, Bank "C" will likely need to as well, or risk losing out on business opportunities, all else being equal.

Is it complicated to use C-PACE?

Not at all. Deploying C-PACE may add a few extra steps compared with a traditional senior mortgage, such as an energy audit and coordination with the local taxing authority, but our diligence process generally mirrors that of the senior lender. We can also rely on their appraisal, inspection reports, and other third-party work rather than recreating the wheel. Payments are typically made only once or twice a year. Additionally, NGC's C-PACE expertise is widely recognized in the industry, and our team of experts makes execution smooth through timely, clear communication at every stage of the closing process.

Ryan Doyle - Southeast/ Mid-Atlantic

What are some examples of financing structures that can be deployed?

C-PACE financing is extremely flexible, and we've partnered with numerous sponsors on creative financing structures to address their specific project needs. One of the most inventive and beneficial structures we've implemented with increasing frequency allows sponsors to handle C-PACE payments in tranches, which enables a significant reduction in overall financing costs. Other structures include using C-PACE to recapitalize and pay down other higher-cost debt after construction completion, layering C-PACE alongside senior debt to close a gap in the capital stack without requiring additional equity, and structuring forward commitments that lock in attractive C-PACE terms during construction for funding at stabilization.

Beyond cost, C-PACE offers structural flexibility that's difficult to replicate with other forms of capital.

What types of projects and asset classes are the best fit for C-PACE?

While C-PACE is eligible across a broad range of commercial property types, NGC's most frequently funded asset classes are hotels, followed by multifamily properties, though this order can shift from year to year.

For instance, NGC recently provided both acquisition and renovation financing for the Westin Peachtree Plaza in Atlanta, Georgia. This transaction involved closing the largest C-PACE financing in Georgia history at $63.5 million on a tight acquisition timeline, partnering with a large national bank and an experienced Atlanta-based developer to reposition a 1,000+ room hotel that has been a staple on the Atlanta skyline for decades.

In addition to primary commercial and residential property types, NGC has also financed more special use projects, including an indoor music venue in Baltimore, Maryland, and a recently completed sports arena in Oceanside, California.

Cory Jubran – West

How does C-PACE interact with existing debt in or a recapitalization financing situation?

C-PACE can be a very effective complement to existing debt and recapitalization situations because it typically sits alongside the senior loan rather than competing with it. In many transactions, C-PACE is structured so the senior lender remains in first-lien position on the mortgage, while the C-PACE obligation is repaid through a property tax assessment with a long-term amortization profile.

Practically, that means sponsors can use C-PACE to add long-duration, fixed-rate capital to the stack, either at closing or post-construction, to refinance higher-cost bridge or mezzanine debt, reduce near-term maturity pressure, or create additional runway for stabilization. The key is lender alignment: the senior lender needs to be comfortable with how the assessment is sized, how payments are escrowed, and the overall cash flow coverage.

Can C-PACE help achieve higher debt proceeds?

Yes, C-PACE can help achieve higher total proceeds in the right situation because it introduces an additional source of capital that can reduce the amount of equity required or lower the senior loan proceeds needed to hit a target leverage level.

That said, proceeds are still ultimately constrained by project fundamentals and underwriting, including cash flow, value, lien priorities, and the senior lender’s requirements, so the best outcomes come when C-PACE is planned early and integrated into the capital stack strategy.

Aidan McLaughlin – West

What are C-PACE’s typical terms and parameters?

Nuveen Green Capital's C-PACE is structured as long-term (up to 30 years), non-recourse, fixed-rate financing, and leverage ranging from 40% to 50% LTC. Due to the nature of the special assessment security instrument, there are no deeds of trust or UCC (Uniform Commercial Code) filings associated with C-PACE, which allows for more borrower- and co-lender-friendly structures than other forms of traditional financing. Ongoing covenants are very light, with no ongoing DSCR or LTV tests, and the 30-year term means no maturities during project lease-up.

Is there prepayment flexibility?

Unlike other forms of long-term, fixed-rate financing, C-PACE does not have yield maintenance or defeasance requirements. Instead, we structure our prepayment protections as fixed percentages that look and feel more like exit fees. Typical prepayment structures step down over the course of the first 3 to 6 years, allowing sponsors the flexibility to effectuate their business plan without incurring major prepayment penalties. These prepayment schedules can be adjusted to allow for maximum flexibility. Additionally, C-PACE converts from construction to perm without any extensions or modifications, meaning there are no extension fees following the construction period.

Mike Doty - Northeast

How does the approval and closing timeline compare to conventional financing?

While every transaction is different, our team is made up of fully in-house C-PACE specialists spanning originations, credit, legal, and asset management, which allows us to accelerate closings in as little as 45 days. We recently achieved that timeline on a large transaction that included legislative action in addition to a complex capital stack.

What are some interesting trends / projects you’re seeing in your market?

Given the debt maturity wall, we are seeing an increase in recapitalizations across asset classes as sponsors look to C-PACE to access attractive, fixed-rate financing to bridge projects to stabilization. C-PACE proceeds can be used to replenish reserves, fund construction overruns, or bridge the gap during slow lease-up, all while lowering debt service by paying down more expensive capital. C-PACE also offers the flexibility to defer payments for approximately three years, which has proven beneficial to many sponsors. We recently closed on 3151 Market Street, an office and life science asset in Philadelphia, where this structure was critical to the long-term success of the property.

In terms of trends, it's an exciting time for C-PACE as it continues to expand not just in the Northeast, but across the U.S., and our firm is exploring international opportunities as well. We're also seeing the use cases for C-PACE expand across asset classes. I recently oversaw the closing of a $101 million C-PACE financing, the largest C-PACE-financed transaction in the state of New Jersey and the first in the city of Newark, for Lionsgate Studios Newark, a new, purpose-built, six-stage film studio complex.

The sponsor used C-PACE to anchor the capital stack and de-risk refinancing upon completion, another example of the value our experience and ability to scale brings to our clients. This deal also included a novel legal structure pioneered by the NGC team, and as a special-use asset, it required the capacity C-PACE can provide to be efficiently priced.

As sponsors continue to navigate the changing market and the opening aperture to new financing approaches through C-PACE, the platform is proving to be one such innovative and cost-effective financing option, helping to reshape commercial real estate finance.

While these are some of the questions we are often asked, NGC's Originations team is available to answer any further questions you may have.