#c-pace – Philadelphia C-PACE

December 18, 2023

Lubert-Adler & Northbridge ESG LLC Close $25.6MM deal, the Third Largest in Pennsylvania

C-PACE was used at the completion of construction for six of 12 separate condo units at the Battery, an adaptive reuse of the old PECO generating station

The Battery is an adaptive reuse project by Lubert-Adler located at 1325 Beach Street. The former PECO power plant was transformed into a first-class mixed-use project including hospitality, multifamily, retail, and commercial spaces. The building fronts the Delaware river in the Fishtown neighborhood of Philadelphia and is located in an Opportunity Zone and abuts Penn Treaty Park. North Bridge provided C-PACE proceeds at TCO for work that had already been completed as part of the large-scale renovation. This was Northbridge’s first C-PACE financing in Pennsylvania. Fact sheets for this project and all PA C-PACE projects can be found here.

Laura Rapaport of North Bridge stated, “We are thrilled to provide capital for this innovative adaptive reuse and repurposing for this former power plant that has been transformed into a mixed-use campus with multifamily residences, offices and event space. We are excited to be part of such a pivotal transaction that provided a market solution within a fully institutional capital stack (borrower and lender). This project also demonstrates the ability for developers to improve energy savings and upgrade outdated infrastructure with efficient and sustainable measures”.

Philadelphia City Councilmember Mark Squilla (1^st District) is “thrilled to see C-PACE being used for energy efficiency improvements to this magnificent adaptive reuse of an old PECO generating station. $26.6 million invested in energy and water conservation for an iconic building that is part of the Delaware River waterfront revitalization effort is a win-win-win. This financing shows that C-PACE is a great solution for building owners to significantly reduce energy consumption thereby lowering operating costs, improving property value, and combating climate change.”

“This project is a great example of how clean energy financing enables important capital improvements and creates economic development. At the Philadelphia Energy Authority, we use energy as a tool for positive local impact, and this project exemplifies that,” said Lisa Shulock, Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “We are particularly excited to see that modeled energy use is expected to be 29% lower than the City’s building energy code.”

Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org and/or attend our C-PACE Open Meetings which take place on the last Thursday of each month from 2:00-3:00PM. See all C-PACE Philadelphia events here.

September 26, 2023

Palladium Group & Nuveen Green Capital close $7.5MM C-PACE deal

The Philadelphia Energy Authority, Nuveen Green Capital and TLSIC P3, LLC and Liberty Square P3, LLC closed on retroactive C-PACE financing for energy efficiency and water conservation measures installed during the construction of Phase III of Liberty Square, a mixed use multifamily and commercial property located at 1214 & 1252 N. American Street. Fact sheets for this project and all PA C-PACE projects can be found here.

Liberty Square is located in the Northern Liberties neighborhood of Philadelphia. The project construction was completed in 2022. C-PACE financing for this new construction building was used for energy and water efficiency improvements. Energy modeling shows it is expected to be 23% more energy efficient than required by Philadelphia’s building energy code. The owners, managed by Palladium Group, borrowed $7,500,000 in C-PACE financing from Nuveen Green Capital to fund the energy and water efficiency improvements.

December 7, 2022

Largest PA C-PACE deal closed; Philly total @$100MM

Nuveen Green Capital Provides $30 Million in Financing Through the Philadelphia
C-PACE Program for Freezpak Logistics

Philadelphia-area based BG Capital uses C-PACE to complete capital stack for new construction of industrial cold storage facility

Nuveen Green Capital and the Philadelphia Energy Authority announced the closing of $30.08 million in Commercial Property Assessed Clean Energy (C-PACE) financing for a cold storage facility at 2201 E. Allegheny Avenue in the Port Richmond neighborhood of Philadelphia. This is the largest C-PACE deal to-date in Pennsylvania.

This brings the total amount of C-PACE dollars invested by private sector lenders to $100MM in Philadelphia, a true landmark in the program which became active in late 2019, just before the pandemic-induced recession.

C-PACE financing is being used for extensive energy efficiency improvements, making the building 30% more efficient than required by Philadelphia’s building energy code. Financed measures include energy efficient walls and glass, interior and exterior LED lighting, variable volume air handlers, freezer evaporators, domestic water heater, and exhaust fans. C-PACE financing is projected to contribute to the annual reduction of 1,661,573 pounds of CO2-e.

According to BG Capital’s Managing Partner Joe Byrne, “in these challenging times, alternative debt solutions like C-PACE have now become critical in rounding out the capital stack within larger scale projects. We are extremely fortunate to work with the team at Nuveen Green Capital on getting this deal over the finish line and working with a company whose product has an emphasis on sustainability within our industry.”

Shelah Wallace, Director, Originations at Nuveen Green Capital stated that “it was a pleasure to work closely with BG Capital and Freezpak, Ocean First Bank, and the Philadelphia Energy Authority on getting us to the closing table at a time when interest rates continuously fluctuated and parties risked losing rate locks. We look forward to financing more energy efficient projects together in the future.”

“This project is a great example of how clean energy financing enables job creation and creates economic development. We use energy as a tool for positive local impact, and this project exemplifies that,” said Matt Stern, Senior Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “In addition to the construction jobs being created by this facility, Freezpak expects to generate over 60 permanent jobs at the facility.”

Details on this and all Philadelphia C-PACE deals can be found here.

Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org and/or attend our C-PACE Open Meetings.

August 5, 2021

Kirkbride Center uses C-PACE

The Philadelphia Energy Authority completed its 5th C-PACE financing in Philadelphia. The Kirkbride Center, a historic health services center in West Philadelphia, obtained $4.33MM in C-PACE financing for upgrades to its boiler and chiller plants.

CounterpointeSRE Provides $4.33 Million in C-PACE Financing to Improve Energy Efficiency at Kirkbride Center in Philadelphia