Sponsored By

Nuveen Green Capital Expands C-PACE Platform With CDPQ Partnership

Nuveen Green Capital (NGC), which has emerged as a leader in the commercial property assessed clean energy (C-PACE) lending space over the past decade, is pioneering a new partnership aimed at broadening the scope of the sustainability financing vehicle.

NGC, Nuveen's clean energy lending arm, announced Monday that it has teamed up with Canadian global investment group CDPQ to launch a $600 million integrated commercial real estate lending program that combines long-term C-PACE financing with senior bridge and construction loans. 

Since NGC’s first foray into C-PACE lending, the industry has seen more than $7 billion in financing volume from over 2,300 projects. According to the company, NGC accounted for 41 percent of the total C-PACE activity in 2023.  

“Through this distinctive financing program, we can accelerate the implementation of environmentally sound measures for commercial real estate owners and developers,” Marc Cormier, executive vice president and head of fixed income at CDPQ, said. “We are excited to combine our long-term capital with Nuveen Green Capital’s extensive expertise to offer a sustainable integrated financing solution that fully aligns with CDPQ’s climate strategy and commitment to decarbonize the real economy.”

Read more here.

Sponsored by AXCS PACE

AXCS PACE is a New York-based, national direct lender specializing in C-PACE financing for commercial real estate across all asset classes and geographies. AXCS PACE offers low-cost, fixed-rate, long-term loans ideal for new construction or as bridge financing for recently completed projects.

Our team of seasoned real estate professionals, with extensive expertise in structured finance, crafts tailored solutions that align with Sponsor’s needs, including hedging away negative arbitrage and flexible prepayment options.

Please visit us at www.c-pace.com or submit your C-PACE financing request below.

✅ New Jersey Approves C-PACE Program

The New Jersey Economic Development Authority (NJEDA) Board approved creating the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will allow commercial property owners to access a new form of financing to undertake energy efficiency, water conservation, renewable energy, and resiliency upgrades, supporting Governor Phil Murphy’s efforts to transition to 100 percent clean electricity in the state by 2035.

“After seeing the success of C-PACE programs across the country, I was proud to sign legislation into law to establish the program in the Garden State,” said Governor Murphy. “The time for bold, innovative actions that will help thwart the effects of climate change is now. The Garden State C-PACE Program will lead to a greater embrace of clean energy measures that will help improve our communities while saving money for New Jerseyans.”

“Under Governor Murphy’s leadership, New Jersey has set ambitious clean energy goals, unlocking opportunities in emerging industries to create economic growth and high-quality jobs while protecting the environment for future generations,” said NJEDA Chief Executive Officer Tim Sullivan. “The Garden State C-PACE program will serve as a catalyst for private investment into building decarbonization, renewable energy, and resiliency projects, helping to reduce energy costs and stimulate the economy.”

Read more here. 

C-PACE Appealing in Low Interest Rate Environment

The Federal Reserve’s decision to aggressively hike the federal funds rate in 2022 threw the commercial real estate market into turmoil. Property investors found it challenging to refinance much cheaper short-term loans often used to renovate or develop properties.

However, the interest rate spike greatly enhanced the viability of commercial property assessed clean energy (C-PACE), a type of loan that becomes an assessment that borrowers pay along with their tax bill. The program emerged over a decade ago and generally pays for energy, water, and seismic resiliency upgrades in new construction and rehabs, including retroactively. As a result, developers embraced C-PACE as they sought ways to pay down debt to secure new financing or loan extensions and modifications.

Now that the Federal Reserve has reversed course with its 50-basis-point federal funds rate reduction in September — and with Wall Street anticipating additional rate cuts before the end of the year — will C-PACE demand start to cool? Don’t count on it, says Rafi Golberstein, founder and CEO of PACE Loan Group, a direct lender of C-PACE financing based in Minneapolis, Minn.

He maintains that C-PACE remains an attractive funding source due to its competitive cost of capital and the continued restraints on bank lending. Plus, after years of hesitancy, more conventional lenders and brokers are beginning to grasp the benefits and flexibility offered by C-PACE as it spreads across the country.

Read more here.

Want to learn more about C-PACE? Get started with the articles below:

• What You Need To Know About C-PACE

• Step-By-Step Guide

• History of C-PACE

• Policy & Legislative Framework

• Eligibility of C-PACE

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About C-PACE.COM

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C-PACE.COM was founded by investment professionals with meaningful experience in real estate investment banking, private credit, private equity, and development. Through C-PACE Financing, we seek to reduce the carbon footprint created by commercial real estate and generate superior risk-adjusted returns for our clients.

At C-PACE.COM, we are the #1 Trusted Source for C-PACE loans and actively lend across all asset types and geographies in the U.S.

If you have any questions regarding C-PACE or want to discuss your project further, drop us a line → [email protected].

Thanks for reading!

Cheers,
Jonathan Seabolt
Founder & CEO
C-PACE.COM