Nuveen and affiliate Nuveen Green Capital, which focuses on providing sustainable CRE financing solutions, have raised $785 million in new capital commitments for Nuveen C-PACE Lending Fund III.
This is Nuveen’s third C-PACE fund since the firm acquired Greenworks, thus entering the clean energy lending sector. The fund targets financing projects across several commercial real estate sectors such as industrial, office and retail, but also multifamily, hospitality and student housing.
NGC’s C-PACE lending strategies give insurance investors access to steady returns while supporting much-needed capital expenditures on commercial properties. They now have more than $6 billion in assets under management.
Nuveen sees life insurers prioritizing longer-duration securities backed by investment-grade assets with attractive risk-adjusted returns, Joseph Pursley, Nuveen head of insurance, Americas, said in a prepared statement.
NGC’s C-PACE endeavors
Since 2017, NGC has issued more than $3 billion through C-PACE securitizations and private funds. It reportedly was the first company to securitize this asset class and launch a private fund series.
In October, the firm partnered with CDPQ and launched a $600 million integrated sustainable CRE financing program. The venture combined C-PACE financing with senior bridge and construction loans.
Recent C-PACE projects in which NGC has participated include a Miami data center and a Las Vegas luxury multifamily high-rise.
The iM Critical Miami Data Center was formerly a BellSouth facility originally built in 1929. Recapitalizing and repositioning the property will include alterations to the building envelope, lighting, power and cooling infrastructure, as well as the improvement of water efficiency. The project is scheduled for completion next month. The C-PACE debt facility totaled $32.6 million.
In contrast, the 22-story, 272-unit Capella multifamily project by Southern Land Co. is a new development. Its total cost of $211 million includes $50 million of 30-year C-PACE financing, helping to cover the building envelope and lighting, HVAC and water-efficiency measures.
