#USA #Tampa #Nuveen Green Capital #PACE Financing #Pendry Hotel

Nuveen Green Capital Completes Historic $290 Million C-PACE Deal

Nuveen Green Capital (NGC), a prominent entity in sustainable commercial real estate financing, has recently made headlines by securing an impressive $290 million C-PACE (Commercial Property Assessed Clean Energy) transaction. This unprecedented deal is associated with the luxurious Pendry Hotel Residences, which is situated in the vibrant Riverwalk District of Tampa, Florida. Notably, this transaction stands as the largest of its kind in history and marks the inaugural C-PACE financing in the city.

Understanding C-PACE Financing

C-PACE financing is designed to facilitate flexible funding for various sustainability measures in commercial real estate projects. Whether for new constructions or existing buildings undergoing renovations, C-PACE offers a range of advantages that cater to the financing needs of property developers. This transactional success is a clear indication of how essential C-PACE has become in the domain of commercial real estate financing, now implemented across 40 states and Washington D.C.

The Pendry Hotel Residences Project

The Pendry Hotel Residences is not just another development; it represents a transformative vision for Tampa. The 38-story tower will house a mix of 200 luxury residential condominiums and a 220-key hotel, steadily enhancing the skyline of downtown Tampa. Designed by the acclaimed architectural firm Arquitectonica and featuring interiors by Studio Munge, this development promises residents breathtaking views of the city along with high-end amenities. These include rooftop pools, a luxurious spa, cutting-edge fitness facilities, and an extensive event space totaling 15,000 square feet.

Financial Structure and Sustainable Impact

The C-PACE funding was issued to Two Roads Development, the project sponsor based in South Florida, in collaboration with Sculptor Capital Management, forming part of a broader $520 million financing package. This innovative funding solution allows for flexibility in repayment structures and the possibility to finance the project in stages, ultimately leading to reduced overall project expenditures.

The financial measures funded through C-PACE are aimed at enhancing both energy and water efficiency within the building. This includes crucial elements such as advanced building envelopes, energy-efficient lighting systems, and state-of-the-art HVAC installations. Notably, this project marks a first for Florida, incorporating resilient flood panels to combat the risks presented by high water levels.

According to assessments, these sustainability measures will yield substantial environmental benefits. The savings from the high-efficiency installations are estimated to prevent over 55,701 lifetime metric tons of carbon emissions, equating to the annual energy consumption of approximately 7,500 households. Additionally, the overall energy and water-saving strategies financed through C-PACE are estimated to deliver annual savings of around $524,572 to the property.

A Milestone in Real Estate Financing

Ryan Doyle, Senior Director of Originations at Nuveen Green Capital, expressed immense pride in achieving this historic transaction, stating, "We are thrilled to have closed the largest C-PACE transaction in history, which will redefine Tampa's skyline." This sentiment was echoed by Taylor Collins, Managing Partner at Two Roads Development, who emphasized the project’s financial flexibility and the sustainability benefits that the financing will bring.

As C-PACE financing accelerates its adoption within the broader real estate market, this deal serves as a critical benchmark for future developments. Ahisha Moyet-Rodriguez, C-PACE administrator for the Florida Development Finance Corporation, concurs, stating that this transaction exemplifies how C-PACE can catalyze economic development while addressing sustainability objectives.

In conclusion, this record-breaking C-PACE transaction heralds a new era in commercial real estate financing, showcasing how innovative funding mechanisms can effectively support large-scale luxury developments while advancing essential sustainability goals.