#United States #Rexburg #Nuveen Green Capital #C-PACE #Sweetwater Companies

Nuveen Green Capital Marks a Milestone in Idaho with C-PACE Financing

In an impressive move for the sustainable real estate industry, Nuveen Green Capital (NGC) has completed its first-ever Commercial Property Assessed Clean Energy (C-PACE) transaction in the state of Idaho. This achievement involves securing $15 million in financing for Madison Station, a new multifamily development located in Rexburg, Idaho. This marks a significant moment for sustainable financing solutions in the state.

Background of Madison Station

Madison Station is an ambitious project being developed by Sweetwater Companies, boasting 360 units of much-needed housing aimed at young families and students. Situated at 577 Trejo Street, right by Brigham Young University's Idaho campus, the development consists of both one and two-bedroom apartments, each equipped with modern amenities. Following the successful completion of phase I, which delivered 144 units, the project has now entered its second phase, underpinned by this milestone C-PACE transaction.

The Significance of C-PACE Financing

C-PACE financing has been gaining traction across 40 states and Washington D.C. since its inception, serving as a flexible funding solution for new and ongoing commercial real estate projects. This financing model is not just about funding; it’s a strategic approach to reduce overall project costs and encourage sustainable practices in building construction. The allocated $15 million will finance essential elements such as roofing, windows, insulation, lighting, water conservation measures, boilers, and HVAC systems for Madison Station, once again highlighting the blend of sustainability and cost-efficiency.

Ryan Nelson, the Founder and Managing Partner of Sweetwater Companies, emphasized the importance of this project. He stated, “Collaborating with Nuveen Green Capital to initiate Idaho's first C-PACE transaction has allowed us to significantly minimize the construction debt’s weighted costs. Their team was highly responsive and instrumental in ensuring a smooth closing process, demonstrating that collaborations can lead to remarkable achievements.”

A Local Perspective on C-PACE

This initiative also received attention from local officials. Bret Stoddard, Rexburg's Building Official and C-PACE administrator, expressed his excitement about this landmark project, stating, “Seeing Idaho's first C-PACE project come to life with NGC's support gives us hope. It paves the way for other commercial property owners and developers to adopt innovative financing solutions, which not only enhance economic efficiency but also contribute positively to our community.”

More Than Just Financing

Nuveen Green Capital’s Director of Originations, Aidan McLaughlin, articulated that the completion of this C-PACE transaction isn't merely a financial success. It's a notable example of how C-PACE is evolving as a viable financing option, providing competitive advantages over traditional bank financing methods. The approach ensures that borrowers and lenders can work hand-in-hand to realize their aspirations, benefitting from low interest rates and favorable terms.

Future Implications for C-PACE in Idaho

This significant deal underlies a broader trend in C-PACE financing, particularly within the Western U.S. As more developers and owners recognize C-PACE as a cost-effective tool, one can expect heightened activity in the commercial real estate marketplace. To date, NGC has successfully completed over $3 billion in cumulative originations, affirming its robust standing in the realm of sustainable financing and development.

In conclusion, Nuveen Green Capital’s efforts through this C-PACE transaction not only set a precedent for future projects in Idaho but also push the industry’s envelope in terms of sustainable development. As the trend grows, it’s likely that other developers in Idaho will follow suit, seeking innovative and effective financing solutions for their commercial real estate projects.