$40MM IN ENERGY EFFICIENCY FINANCING FOR MULTIFAMILY PROPERTY
Developer Southern Land Company secures $40MM in energy efficiency financing for 329 apartments and 15,000 SF of retail through C-PACE program expansion
The Philadelphia Energy Authority, Nuveen Green Capital and Southern Land Company announced today the closing of $40MM for a 329-unit multifamily property in the Callowhill neighborhood of Philadelphia at 5th and Spring Garden Streets. This is the largest C-PACE financing in Pennsylvania.
Commercial Property Assessed Clean Energy (C-PACE) financing allows for investments in energy efficiency, water conservation, renewable energy, and now IAQ and resiliency, that are paid back over time through special property assessments. This project is the second in Pennsylvania to take advantage of expanded eligibility for multifamily properties.
“This project could not have been financed without C-PACE. We are grateful to be benefiting from the newly expanded C-PACE program,” said Tim Downey, Southern Land Company Founder and CEO. “Energy efficiency is central to the design and functionality of this project. It truly matters to us that C-PACE financing is available to support our objective of designing and building better for the long-term. Both the Philadelphia Energy Authority and Nuveen Green Capital have made this process easy to navigate and clearly beneficial.”
“We could not be more thrilled to have worked on this historic deal with Southern Land Company and the Philadelphia Energy Authority,” said Shelah Wallace, Director of Originations at Nuveen Green Capital. Not only is it the largest, and second-ever multifamily project to be funded through C-PACE, it is showing CRE developers and property owners the power of this financing mechanism.”
Senate Bill 635 expanded eligibility for C-PACE financing to include multifamily commercial buildings, indoor air quality and building resiliency improvements. Act 43 of 2022 expands on Act 30 of 2018, which first enabled C-PACE financing in Pennsylvania for commercial buildings. Sponsored by Senator Yudichak, the Act extends eligibility to multifamily commercial buildings of 5 or more units, as well as indoor air quality and building resiliency improvements. Representative Heffley sponsored the House companion bill, HB 1760.
“We are grateful to Senator Yudichak and Representative Heffley for their sponsorship of expansion,” said Emily Schapira, President & CEO of the Philadelphia Energy Authority, Philadelphia’s C-PACE Administrator. “This project is evidence of the importance of the expansion.”
This and all other Philly C-PACE case studies and disclosures can be found here.