Nuveen Green Capital closes second largest C-PACE financed transaction to date on '200 Park,' a preeminent trophy asset in San Jose, California

Rhea-AI Summary

Nuveen Green Capital (NGC) has closed a $220 million C-PACE financing deal for 200 Park Avenue in San Jose, California, marking the second-largest C-PACE transaction in the country. The financing was used to recapitalize sustainability and resiliency measures for the recently completed 19-story, 965k square foot, LEED Gold-certified office building. The property, developed by Jay Paul Company, features advanced sustainability elements including solar PV arrays, efficient lighting, and innovative seismic bracing systems. NGC has now surpassed $3 billion in total originations volume, with approximately $700 million in C-PACE financings on the West Coast in just over a year.

Positive

• Secured $220 million in C-PACE financing, marking the second-largest such transaction nationally
• Successfully recapitalized existing construction loan with more flexible terms
• Achieved $3 billion milestone in total originations volume
• Deployed $700 million in West Coast C-PACE financings in just over a year

Negative

• None.

Insights

Commercial Real Estate Analyst

This $220 million C-PACE financing deal for 200 Park represents a significant milestone in sustainable commercial real estate financing. The transaction's structure allows Jay Paul Company to refinance existing construction loans while maintaining operational flexibility. The LEED Gold certification and advanced sustainability features enhance the property's long-term value proposition.

The building's premium location in downtown San Jose and its state-of-the-art specifications position it well in the competitive Silicon Valley market. The Risk Category III seismic design provides additional value security, particularly relevant for institutional investors. With $3 billion in total originations, Nuveen Green Capital's growing C-PACE portfolio indicates strong market adoption of sustainable financing solutions.

Sustainability Finance Expert

The scale of this C-PACE transaction demonstrates the maturing market for green building finance. The comprehensive sustainability features - from solar PV arrays to efficient HVAC systems - showcase how C-PACE can effectively bridge the gap between environmental goals and financial viability. The $700 million in West Coast C-PACE financings by NGC in just over a year signals strong regional market momentum.

The flexible financing structure offers advantages over traditional construction loans, particularly for projects with significant sustainable elements. This deal could serve as a template for other institutional-grade developments seeking to leverage green financing solutions.

Sponsor leveraged C-PACE's flexible, attractive financing structure to deploy $220 million in C-PACE capital for Jay Paul Company designed, LEED Gold-certified tower 

DARIEN, Conn., Nov. 4, 2024 /PRNewswire/ -- Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions, announced today that it has successfully closed on the financing of $220 million in C-PACE capital for 200 Park Avenue in San Jose, California. This landmark project marks the second largest C-PACE financed transaction in the country to date.

C-PACE, which stands for Commercial Property Assessed Clean Energy, provides flexible financing solutions for new, ongoing, or recently completed commercial real estate projects. Available in 40 states and Washington D.C., C-PACE has grown rapidly as an attractive financing solution within the commercial real estate market.

$220 million in C-PACE financing was used to recapitalize the building's extensive sustainability and resiliency measures. Capitalizing on C-PACE's flexibility of structure, longer term, and its attractive economics, the Sponsor was able to refinance their existing construction loan. This provided the Sponsor the flexibility to continue to execute their business plan.

Located in the heart of downtown San Jose, 200 Park is a recently completed 19-story, 965k square foot, class-A office building, which was designed and developed by renowned commercial real estate development firm, Jay Paul Company. Currently downtown San Jose's tallest building, the iconic, state-of-the-art property is intended to help redefine the city's cultural district, while acting as a gateway to the downtown area, and proposed transport hub, Diridon Station.

The building was designed to prioritize the health and well-being of its occupants and the environment, making it a model for state-of-the-art technology and design. The LEED Gold certified building boasts solar PV arrays, a VAC decoupled perimeter system, high efficiency lighting with optimized daylight controls, low flow fixtures, insulated high performance envelope, low-E glazing and solar shading, as well as EV charging stations. As a Risk Category III building, which requires 25% less seismic movement than most other commercial buildings, the seismic bracing system is an innovative Concrete-Filled Composite Plate Shear Wall system, which provides significantly more strength as compared to the same-sized reinforced concrete walls. In addition to the high level of safety during extreme seismic events, the building is expected to move less than other buildings during smaller, more common earthquakes, resulting in less damage to structural and non-structural systems. In addition, the building includes vast floor spaces, 24.3k square feet of outdoor terraces, cutting-edge carved light canyons to allow for optimal natural light, four levels of underground parking, as well as a 20.5k square foot fitness and amenity center.

"We are very proud to have provided an historic $220 million C-PACE facility for this exceptional, high-quality asset. The Jay Paul Company team has developed an iconic, ultramodern property in the heart of Silicon Valley. Not only does the deal represent the second largest C-PACE financed transaction in the country to date, but it also demonstrates the large-scale adoption and tremendous appeal of C-PACE as an alternate form of construction and recapitalization capital for institutional developers and commercial real estate owners. Given C-PACE's flexible and attractive terms, we anticipate continued positive momentum on the West Coast – and nationally. In just a little over a year, Nuveen Green Capital has been able to provide approximately $700 million in C-PACE financings on the West Coast - further evidence of the broader adoption of the product," said Cory Jubran, Senior Director of Originations – West Coast Head, Nuveen Green Capital.

"On behalf of the Jay Paul Company, I'd like to thank everyone at Nuveen Green Capital who made this unique and complex financing structure possible for our 200 Park project. The team successfully navigated us through the C-PACE process and provided one of the largest transactions of its kind. Their expertise and transparency throughout proved to be invaluable and resulted in a big win for all parties," said Matt Lituchy, Chief Investment Officer for Jay Paul Companies.

JLL Capital Market's Debt Advisory team representing the Sponsor was led by Director Matt Cimino and Senior Managing Director Bruce Ganong.

"It was a coordinated team effort by all parties, and we are grateful for the relationships on both sides of the transaction and for the commitments that were required from both the lender and borrower to see this transaction through to its successful closing. We are pleased to have represented Jay Paul Company in this transaction, and we are thankful for the creative solution delivered by Nuveen Green Capital," said Ganong.

This notable deal is part of a larger trend in C-PACE financing that is impacting the West Coast, as well as the commercial real estate industry overall, as an increasing number of owners and developers are leveraging C-PACE as a cost-efficient and flexible financing tool. With this transaction, NGC has surpassed $3 billion in total originations volume.

About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for over $1 trillion in assets under management. Established in 2015 by the C-PACE industry's founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water and resiliency performance of their property. For more information, visit www.nuveen.com/greencapital.

About Jay Paul Company
Founded in 1975, Jay Paul Company is a privately-held, opportunity-driven real estate firm known for being one of the largest real estate developers in San Francisco. Jay Paul Company concentrates on the acquisition, development, and management of prime commercial properties throughout California. By blending the skills and expertise of their talented management team, Jay Paul Company developments consistently generate attractive returns for their investment and development partners. With a specific focus on creating best-in-class projects for leading technology firms, Jay Paul Company has successfully developed over eleven million square feet of institutional quality space with an additional six million square feet in its active development pipeline. Jay Paul Company has experience developing along the Peninsula and has helped shape the tech industry from the beginning, developing the first campuses designed around best-in-class amenities, collaboration, and well-being. The Jay Paul Company has experience in developing industrial, office, and multi-family assets throughout the Peninsula.

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. 

Media Contact:                                                                                                                                
Jamie McCorry
Nuveen Green Capital
959-261-8689 | Jamie.McCorry@Nuveen.com

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SOURCE Nuveen

FAQ

What is the value of the C-PACE financing secured for 200 Park in San Jose?

Nuveen Green Capital secured $220 million in C-PACE financing for 200 Park Avenue in San Jose, California.

What sustainability features does 200 Park Avenue in San Jose include?

The LEED Gold certified building includes solar PV arrays, VAC decoupled perimeter system, high efficiency lighting, daylight controls, low flow fixtures, insulated high performance envelope, low-E glazing, solar shading, and EV charging stations.

How much has Nuveen Green Capital deployed in West Coast C-PACE financings?

Nuveen Green Capital has deployed approximately $700 million in C-PACE financings on the West Coast in just over a year.

What is the total square footage of 200 Park in San Jose?

200 Park is a 965,000 square foot, class-A office building in downtown San Jose.