#USA #Lebanon #Nuveen Green Capital #C-PACE #The Brickyard

Nuveen Green Capital Marks New Milestone in New Hampshire

In an exciting development for commercial real estate financing, Nuveen Green Capital (NGC) has successfully closed New Hampshire's inaugural Commercial Property Assessed Clean Energy (C-PACE) financing, totaling $23.2 million. This transaction was achieved for the groundbreaking project, The Brickyard, in Lebanon, New Hampshire, and it signifies a major step forward for energy-efficient funding mechanisms in the state.

A New Financial Era in New Hampshire

The closing of this innovative financing marks a significant milestone, not only for Nuveen Green Capital but also for the entire state of New Hampshire. Overseen by the New Hampshire Business Finance Authority (BFA) under the newly implemented C-PACER Program, this transaction collaborates with a $31.5 million senior construction loan provided by Silver Heights Capital. The combined financing package of $55 million was methodically organized by Kay Finance to ensure a solid financial foundation for the project.

The Brickyard, which represents a master-planned residential community, focuses on sustainable principles. Developed by BRX Development, a prominent New England-based real estate firm, the project aims to implement efficient energy and water management systems along with measures for flood and stormwater handling. Spanning over 26 acres at 174 Hanover Street—on the historically significant former Densmore Brickyard site—the first phase will see the construction of 51 three-bedroom townhome condominiums known as The Townhomes and a 42-unit Class A rental building named the Goff House.

Utilizing C-PACE Effectively

The financing structure of this deal is notably unique, as it incorporates two coordinated C-PACE assessments, one valued at $12.2 million financing The Townhomes and an additional $11 million for the Goff House. Both assessments feature a lengthy 30-year term that provides long-term, fixed-rate financing, which aids in reducing the overall cost of capital for the development and preserves equity for future phases. This strategic financial planning not only accelerates the initial phase of construction but also lays a strong foundation for expanding the project with subsequent phases, adding an additional 381 rental apartments in the future.

Setting a Precedent

As the first of its kind in New Hampshire, this C-PACE transaction is expected to open doors for similar financing mechanisms throughout the state, setting a precedent for future projects. The New Hampshire C-PACER Program was introduced to encourage private investment in energy-efficient construction, further promoting environmentally friendly projects in commercial and multifamily spaces.

Mike Doty, Senior Director of Originations for Nuveen Green Capital, emphasized the importance of this financing, noting, "This landmark financing represents the continued growth of C-PACE as a mainstream commercial real estate financing solution. It demonstrates how C-PACE can complement senior capital for complex development projects."

Simon Beylin, Co-Founder of BRX Development, shared his perspective, stating, "C-PACE has been a critical component of our capital strategy for The Brickyard, allowing us to invest in high-performance building systems and long-term efficiency measures without compromising quality."

Community Impact

The Brickyard development is set to significantly address the pressing housing shortage in New England, specifically in the Upper Valley region. The project has received strong backing from local stakeholders, including the BFA and community members, highlighting a collaborative effort to enhance the housing supply while ensuring environmental sustainability.

Seth Greenwald, Managing Partner of Silver Heights Capital, commended the development plan and the support it garnered, stating its critical nature in a region constrained by housing scarcity. "BRX has assembled a thoughtful development plan with strong local support, and we value our longstanding relationship with Nuveen Green Capital," he noted.

As Eitan Rozenberg of Kay Finance, who facilitated the financing arrangement, pointed out, this project not only secures essential low-cost capital but also establishes a model for future development initiatives in the state.

In summary, as New Hampshire ventures into a new era of environmentally responsible development financing through C-PACE, The Brickyard stands as a prime example of successful collaboration and forward-thinking strategies aimed at creating lasting benefits for local communities. With projected growth in housing and improvements in energy efficiency, this project promises to foster a more vibrant and sustainable Upper Valley environment.