(Darien, CT) – Greenworks Lending, the nation’s largest provider of Commercial Property Assessed Clean Energy (C-PACE) financing, has announced today that it has raised $150M in committed capital from Nuveen, the investment manager of TIAA. This marks the firm’s third investment from Nuveen in three years. The deal, which was structured by Guggenheim Securities, LLC, will further increase Greenworks Lending’s available funding for C-PACE assets across the country.
“During these challenging economic times Greenworks is well-positioned with committed funding available to help building owners keep their properties up to date and developers complete their capital stacks,” said Alexandra Cooley, Co-Founder and COO of Greenworks Lending. “While the current uncertainty in the market is causing stress within the commercial real estate market, Greenworks continues to be committed to providing a long term, secure financing solution.”
Greenworks’ unique credit strategy has resulted in a diversified and well-balanced portfolio, which enabled Nuveen to provide highly competitive capital.
“As longstanding partners, we are confident in Greenworks’ ability to continue to provide quality assets, even in times of economic uncertainty,” said Chris Miller, Senior Director, Private Placements at Nuveen. “As founders and leaders of the C-PACE industry, Greenworks has taken center stage in establishing C-PACE as an asset class and propelling its growth nationwide.”
Commercial Property Assessed Clean Energy (C-PACE) makes it possible for commercial property owners and developers to obtain low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects. The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit. These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure. The assessment transfers on the sale of the property and can be passed through to tenants where appropriate. In many programs around the country, C-PACE can fund retroactively and finance projects that have been completed in the last three years. While facilitating sustainability efforts, the program reduces property owners’ annual costs and provides dramatically better-than-market financing for green new construction.
Despite current economic challenges, Greenworks Lending continues to close C-PACE projects nationwide. In the first few months of 2020, Greenworks has closed a wide variety of projects across 9 states; notably — a $1.2M project on an office building in CA, a $5.1M hotel project in MO, a $670K medical office project in OH, and a $6.7M office building project and a $856K solar project at an auto dealership, both in CT. Greenworks also recently closed the first ever C-PACE project in Delaware, a $4M renovation of the historic DuPont Building which will be a mixed-use facility; and its first project in MN – a $722K energy efficiency upgrade.
Greenworks will use this newly committed capital to continue to help developers looking to build out their capital stacks and support local business communities and commercial building owners fund much needed deferred maintenance projects and save money with solar energy.