LARGEST C-PACE FINANCING IN PA CLOSES, $40MM OF ENERGY EFFICIENCY FOR MULTIFAMILY PROPERTY
The Philadelphia Energy Authority (PEA), Nuveen Green Capital and Southern Land Company closed on $40MM for a 329-unit multifamily property in the Callowhill neighborhood of Philadelphia at 5th and Spring Garden Streets. This is the largest C-PACE financing in Pennsylvania to date.
Commercial Property Assessed Clean Energy (C-PACE) financing allows for investments in energy efficiency, water conservation, renewable energy, and now IAQ and resiliency, that are paid back over time through special property assessments. This project is the second in Pennsylvania to take advantage of expanded eligibility for multifamily properties.
"This project 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 PEA and Nuveen Green Capital have made this process easy to navigate and clearly beneficial."
"We could not be more thrilled to have worked on this historic deal with Southern Land Company and the Philadelphia Energy Authority," said Shelah Wallace, Director of Originations at Nuveen Green Capital. Not only is it the largest, and second-ever multifamily project to be funded through C-PACE in PA, it is showing CRE developers and property owners the power of this financing mechanism."
Senate Bill 635 expanded eligibility for C-PACE financing to include multifamily commercial buildings, indoor air quality and building resiliency improvements. 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.
"This project marks over $160 million in C-PACE projects to date in Philadelphia," said Emily Schapira, President & CEO of PEA, Philadelphia's C-PACE Administrator. "C-PACE continues to be a critical tool in an otherwise volatile financial market to ensure that beneficial projects move forward, and with reduced environmental footprint."