Milestone for North Carolina: Nuveen Green Capital Secures First C-PACE Financing

Nuveen Green Capital Makes History in North Carolina

In a notable step for sustainable financing and urban development, Nuveen Green Capital (NGC) has completed North Carolina's first-ever C-PACE (Commercial Property Assessed Capital Expenditure) transaction. The landmark deal involves a funding of $6.5 million directed towards the rehabilitation of Trenton Mill into Trenton Mill Lofts, an upscale multifamily housing project located in Gastonia, NC, roughly 20 miles from Charlotte. This project signifies not only a financial milestone but also showcases the potential of C-PACE financing in fostering urban renewal.

Understanding C-PACE Financing

C-PACE is designed to provide flexible financing options for various commercial real estate endeavors, whether they are new constructions or improvements on existing properties. With this innovative financing method, property owners in multiple states can tap into capital for energy efficiency upgrades. Since its inception, C-PACE has gained traction in the commercial real estate sector, becoming a go-to solution for many developers and property owners wanting to undertake sustainable projects without overly straining their budgets.

Transformation of Trenton Mill

Originally built in 1897, Trenton Cotton Mill was Gastonia's oldest textile factory. After decades of abandonment, it has been revitalized into a modern residential complex featuring 85 apartments. Developed by Lansing Melbourne Group (LMG), the project blends historical architecture with contemporary living spaces, offering loft-style homes, a fitness studio, communal lounges, and relaxation areas with hammocks and firepits. The redevelopment is part of a broader trend to repurpose historic structures, ensuring they contribute positively to the local community.

The C-PACE funding primarily aimed to enhance the energy efficiency of the newly renovated apartments while also easing some financial strains for the developers. By refinancing part of the original construction loan, the funding allows LMG to cover operating costs and bolsters their leasing efforts, paving the way for financial sustainability.

Community Impact and Future Vision

According to Peter Flotz, CEO and Founder of LMG, the completion of this project represents a significant step in enhancing Gastonia’s FUSE (Franklin Urban Sports Entertainment) district. This area is undergoing a comprehensive revitalization aimed at attracting new investments and developments to the city, seamlessly integrating commercial and residential spaces.

Ryan Doyle, Senior Director of Originations at Nuveen Green Capital, emphasized the significance of this transaction as a testament to the growing acceptance of C-PACE financing across the United States. The flexibility of this financing mechanism means it can effectively support various stages of construction, ensuring that property owners can raise the necessary capital to realize their vision.

Avison Young's Hal Kempson added that amidst current capital market challenges, innovative financing methods like C-PACE are crucial for many projects. Trenton Mill's redevelopment exemplifies how blending modern financing solutions with strong community engagement can lead to revitalized neighborhoods.

In addition to its role in financing the Trenton Mill project, Nuveen Green Capital actively worked with local stakeholders to pave the way for C-PACE’s adoption in North Carolina. These collaborative efforts have opened up significant funding opportunities for commercial property owners throughout the state, ultimately supporting economic growth and community revitalization.

Conclusion

Nuveen Green Capital continues to push the boundaries of sustainable real estate financing, demonstrating its commitment to not only fostering development but also making a lasting positive impact on communities. With its historic C-PACE transaction in North Carolina, NGC is set to inspire further growth and innovation in the realm of sustainable urban development across the Southeastern United States.