Nuveen Green Capital Secures Unprecedented $290 Million C-PACE Deal
Historic $290 Million C-PACE Financing by Nuveen Green Capital
Largest C-PACE Financing in History Supports Luxury Pendry Hotel & Residences
Nuveen Green Capital (NGC), a frontrunner in sustainable commercial real estate financing, has made headlines by closing the largest C-PACE transaction ever recorded—an impressive $290 million for the Pendry Hotel & Residences. Not only does this closing represent a monumental achievement for NGC, but it also marks a pivotal moment as the first C-PACE financed project in its respective city.
Understanding C-PACE Financing
C-PACE, or Commercial Property Assessed Clean Energy, offers innovative and flexible financing options tailored to support the integration of sustainability measures within various commercial real estate projects. The groundbreaking deal signifies a greater acceptance and application of C-PACE, transitioning it from a limited financing option to a standard practice in commercial real estate across 40 states and Washington D.C.
The Pendry Hotel & Residences: A New Standard in Luxury
The Pendry Hotel & Residences is a remarkable addition to Downtown Tampa's vibrant Riverwalk District. This new mixed-use development consists of a 38-story luxury hotel and condominium tower. Visitors and residents can anticipate 200 opulent residential units sitting above a 220-key hotel, all designed to provide breathtaking skyline views.
Architectural Excellence and Amenities
Designed by the renowned architectural firm Arquitectonica and featuring interiors by Studio Munge, the Pendry development is not just about luxury; it's equipped with exceptional amenities. Highlights include rooftop pools, a state-of-the-art spa, a fitness center, and 15,000 square feet of event space—perfect for both leisure and business gatherings.
Partnerships That Make a Difference
NGC's substantial financing will primarily support Two Roads Development, the project sponsor based in South Florida, in collaboration with Sculptor Capital Management. The total financing package for the Pendry Hotel & Residences reaches $520 million. Utilizing C-PACE mid-construction has provided opportunities to lower overall project costs significantly.
Financial Flexibility and Sustainability
This pivotal capital infusion will facilitate crucial energy and water efficiency measures, including upgrades to the building's envelope, lighting, and HVAC systems. Notably, this project introduces a new flood panel financing measure, a first for C-PACE in Florida, enhancing resilience against potential environmental challenges.
Environmental Impact of the Project
The environmental benefits associated with this project are substantial. The high-efficiency systems implemented will save an estimated 55,701 lifetime metric tons of carbon, equating to the annual energy consumption of approximately 7,500 homes. Additionally, projected energy and water savings will lead to approximately $524,572 in annual savings for the property.
Expert Insights on the Deal
Ryan Doyle, Senior Director of Originations at Nuveen Green Capital, expressed his enthusiasm regarding this significant milestone: "Closing the largest C-PACE transaction in history with Two Roads Development and Sculptor Capital Management is a historic achievement. It showcases C-PACE’s capacity to support high-profile developments and its evolution into a mainstream financing tool. Mid-construction deployment of C-PACE allowed for notable project savings, ensuring a successful completion while positioning the asset for long-term viability."
Endorsements from Industry Leaders
Taylor Collins, Managing Partner at Two Roads Development, expressed gratitude for the financial flexibility that enabled the ambitious project execution: "The financing from NGC allowed us to reduce project costs significantly while introducing resiliency measures, which is a first for the Florida market. This partnership is a testament to how C-PACE can support large-scale luxury developments while promoting sustainability objectives."
Conclusion: The Future of C-PACE Financing
Ahisha Moyet-Rodriguez, Manager of Programs for the Florida Development Finance Corporation, remarked on the implications of this transaction: "Administering this historic C-PACE deal will undoubtedly propel the use of C-PACE financing, marking a fantastic step in economic development. The opportunities for sustainability in real estate are expanding rapidly, and NGC is at the forefront of this movement."
Frequently Asked Questions
What is C-PACE financing?
C-PACE stands for Commercial Property Assessed Clean Energy, and it provides financing for energy efficiency and renewable energy upgrades in commercial properties.
Who is Nuveen Green Capital?
Nuveen Green Capital is a leading provider of sustainable commercial real estate financing solutions and has pioneered C-PACE programs across the nation.
What will the $290 million be used for?
The funds will support energy and water efficiency improvements, ensuring the Pendry Hotel & Residences meets high sustainability standards.
Why is this transaction significant?
This transaction represents the largest C-PACE deal to date, highlighting the growing acceptance and importance of sustainable financing in commercial real estate.
How will this project impact the environment?
The project is expected to save significant amounts of carbon and reduce energy costs for its occupants, contributing positively to the environment.
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