The Philadelphia Energy Authority, Nuveen Green Capital, and 3905 Ford LLC reached agreement on $11 million in Philadelphia Commercial Property Assessed Clean Energy (C-PACE) financing. The deal will fund higher-efficiency building systems and water conservation measures within a West Philadelphia healthcare facility renovation.
The 138,157-square-foot property located in the Wynnefield Heights neighborhood is managed by BG Capital. The owners borrowed $10,963,845 in C-PACE financing from Nuveen Green Capital, a leader in sustainable commercial real estate financing solutions.
C-PACE provided retroactive financing following the initial construction of the facility's infrastructure. BG Capital and building occupant Malvern Treatment Centers are now finalizing tenant improvements with the infusion of capital provided by C-PACE.
"We are thrilled to have successfully closed our third C-PACE loan with Nuveen Green Capital and second with the Philadelphia Energy Authority this time marking our first use of C-PACE financing for recapitalization," said Joe Byrne, BG Capital Managing Partner. "C-PACE continues to prove itself as an innovative and highly effective financial tool, and we believe its strategic value within a project's capital stack will only grow in the years ahead."
Managed by PEA, the Philadelphia C-PACE program provides commercial, industrial and multifamily property owners and developers access to long-term, fixed-rate financing for energy efficiency, renewable energy, water conservation, indoor air quality, and resiliency projects.
"C-PACE continues to be a critical tool for building owners and developers to close funding gaps, refinance projects, and achieve the operational and environmental benefits made available from energy-efficient technologies," said PEA Director of Commercial Programs Lisa Shulock. "BG Capital demonstrated a clear commitment to delivering building systems that would support patient comfort, care and recovery. By using 46 percent less energy than minimum energy code, 3905 Ford is a model example of high-performance building design."
The renovation of 3905 Ford Road features LED lighting, improvements to the building envelope, and high-efficiency heating, ventilation and air conditioning (HVAC) systems. Energy-efficient equipment include variable refrigerant flow (VRF) heat pumps throughout the common areas and packaged terminal heat pumps (PTHPs) within the resident rooms.
"We are pleased to have partnered with BG Capital again to provide C-PACE financing for another project through the City of Philadelphia's C-PACE program. C-PACE is a proven and adaptable financing tool unlocking capital for new developments as well as for existing facilities," said Mike Doty, Senior Director of Originations, Nuveen Green Capital. "The creative use of C-PACE to recapitalize this recently reimagined property enabled BG Capital to realize meaningful savings while helping to ensure the building's long-term profitability. This closing underscores C-PACE's efficacy as a cost-effective tool for projects at varying stages of completion."
Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org.
C-PACE Open Meetings take place on the last Thursday of each month. Register here.
