#United States #Philadelphia #Nuveen Green Capital #C-PACE #Brandywine Realty Trust

Historic C-PACE Financing in Pennsylvania

In a groundbreaking achievement for the state of Pennsylvania, Nuveen Green Capital (NGC) and Brandywine Realty Trust (BDN) have closed a remarkable $87.3 million in Commercial Property Assessed Clean Energy (C-PACE) financing. This is not only the largest C-PACE financing in the state's history but also the first time a publicly traded real estate investment trust (REIT) has secured such funding. The project is centered at 3151 Market Street within Schuylkill Yards, an ambitious development initiative in West Philadelphia that focuses on life sciences and mixed-use spaces.

C-PACE financing is a mechanism that enables property owners to secure funds for energy-efficient upgrades, operating costs, and other sustainability-focused initiatives. The funding will particularly benefit future tenants, with $30 million earmarked specifically for their needs. This significant partnership exemplifies the innovative potential of the C-PACE program, showcasing its adaptability and appeal to a range of investors.

Leveraging C-PACE for Sustainable Development

A Transformative Milestone

The $87.3 million funding will support Brandywine's ongoing vision for Schuylkill Yards, which spans 14 acres and is strategically located in Philadelphia's University City area. The focal point of this financing is the 494,530-square-foot, 12-story lab and office building at 3151 Market, designed with a commitment to flexibility and sustainability.

According to Mike Doty, Senior Director of Originations at Nuveen Green Capital, this collaboration not only underscores the importance of sustainable financing solutions but also demonstrates how C-PACE can provide innovative capital structures for diverse projects. Doty expressed excitement about the development's potential to further energize the life sciences sector in Philadelphia.

Economic and Environmental Impact

Tom Wirth, Chief Financial Officer at Brandywine, echoed these sentiments, stating that C-PACE financing arrived at a crucial time for the project. The financial arrangement enables Brandywine to conserve traditional debt capacity while enhancing the building's sustainability features, including upgrades to lighting, HVAC systems, and water conservation measures. This LEED® Platinum building is positioned to be a hallmark of modern, eco-friendly workspaces in the area.

Lisa Shulock, Director of Commercial Programs at the Philadelphia Energy Authority (PEA), praised the milestone as a confirmation that the Philadelphia C-PACE program resonates with institutional investors. The successful financing for 3151 Market signifies growing confidence in C-PACE as a versatile funding solution and its vital role in commercial real estate development today.

The project aligns with Philadelphia’s broader goals of supporting sustainability and economic development, a sentiment shared by city officials like Acting Commerce Director Karen Fegely. She noted that this investment reinforces the city’s commitment to nurturing Philadelphia as a prime destination for growth industries, particularly in the life sciences and technology sectors.

Future Prospects

With 3151 Market ready for occupancy, the building stands out as Philadelphia's next-generation innovation facility, replete with state-of-the-art amenities, lab and office spaces, and a strategic location at the keystone of the flourishing life sciences ecosystem. The confidence and resources demonstrated by both Nuveen Green Capital and Brandywine Realty Trust not only pave the way for this ambitious project but also herald a new era of investment in sustainable commercial real estate.

As stakeholders await the full realization of 3151 Market's potential, they can take pride in being part of a landmark development that emphasizes the intersection of sustainability, innovation, and economic growth within the Philadelphia region.

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About Nuveen Green Capital

Nuveen Green Capital is a trailblazer in sustainable financing, having originated over $5 billion in various projects. As an affiliate of Nuveen, a major asset manager, the company is dedicated to providing financing solutions that are both innovative and accessible, expanding the landscape for sustainable real estate development.

About Brandywine Realty Trust

Brandywine Realty Trust is among the largest publicly traded, full-service real estate companies in the United States, with a portfolio that focuses on properties in key metropolitan areas. Its commitment to sustainability and community development reflects in its extensive projects across Philadelphia and other major cities.

About Philadelphia Energy Authority

The Philadelphia Energy Authority plays an instrumental role in shaping the city's clean energy landscape, launching initiatives that support energy efficiency projects, generate jobs, and promote economic growth.