Nuveen Green Capital (NGC), a sustainable commercial real estate financing solution, has closed a deal involving $90.4 million in C-PACE (Commercial Property Assessed Clean Energy) financing to recapitalise two adjacent properties in Hollywood, Los Angeles—Thompson Hollywood and tommie Hollywood.
C-PACE provides low-cost, long-term, fixed-rate financing to commercial properties for improvements focused on energy efficiency, water conservation, renewable energy, and resiliency and is available in 38 states of the US.
The Thompson Hollywood and the tommie Hollywood, part of the Hyatt brand family and located in Los Angeles, have received $49 million and $41.4 million in C-PACE financing from Nuveen Green Capital, respectively. Through this financing from Nuveen Green Capital, Machine Investment Group and Taconic Capital Advisors, collectively the “Sponsor,” were able to significantly lower their average cost of capital for these projects, enabling the continued success of their business plan while enhancing sustainability.
Cory Jubran, Senior Director, Originations, Nuveen Green Capital said, “As the C-PACE industry continues to grow exponentially, this deal underscores its efficacy – and how vital it has become, particularly in the current lending environment, as an alternate form of cost-efficient debt for owners and developers to fund projects pre-, mid-, or post-construction.”
California’s C-PACE programme enables property owners to use C-PACE financing retroactively for up to three years after completing a construction project or renovation. This financing can be used to pay down or retire more expensive debt, cover project cost overruns, or fund working capital, serving as an effective recapitalization tool.
