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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