Media Contact:
Ben Block
215-688-5134 | media@philaenergy.org
The Philadelphia Energy Authority, Nuveen Green Capital, and Brandywine Realty Trust have reached agreement on $87.3 million in Philadelphia Commercial Property Assessed Clean Energy (C-PACE) financing for 3151 Market Street in Schuylkill Yards, the latest addition to West Philadelphia’s life sciences and mixed-use development hub. The transaction represents the largest C-PACE financing in Pennsylvania’s history and among the largest for a publicly traded real estate investment trust (REIT). This milestone demonstrates C-PACE’s flexibility in working with diverse financing partners and its ability to provide innovative capital structures for various projects.
C-PACE financing positions Brandywine Realty Trust to continue executing its vision for Schuylkill Yards, a 14-acre mixed-use, transit-oriented development located in University City. 3151 Market is a recently completed 494,530-square-foot, 12-story lab and office building designed for flexibility, sustainability and high-performance use. Refinancing the project enables Brandywine to preserve conventional debt capacity at this LEED® Platinum building (certification pending).
“This record-setting $87-million deal is noteworthy not only for its size. As the first C-PACE financing for a real estate investment trust, this project affirms that Philadelphia’s C-PACE program is resonating with institutional owners as well as private investors,” said Lisa Shulock, PEA Director of Commercial Programs. “Retroactive financing for 3151 Market reflects growing confidence in C-PACE as a flexible capital solution and signals its expanding role in today’s commercial real estate market.”
Completed and ready for occupancy, 3151 Market is designed with sustainability at its core, featuring state-of-the-art lab and office space, premier amenities, and a prime location at the center of Philadelphia’s flourishing life science and tech ecosystem.
“C-PACE provided the right financing at the right time for 3151 Market,” said Tom Wirth, Chief Financial Officer, Brandywine Realty Trust. “Working with the Philadelphia Energy Authority affirmed our continued investment in West Philadelphia at Schuylkill Yards, and we’re pleased with how this partnership with Nuveen can help our future tenants make the most of this LEED Platinum-certified building.”
“The Philadelphia C-PACE financing for Schuylkill Yards supports the City’s sustainability and economic development goals,” said Karen Fegely, Acting Commerce Director, City of Philadelphia. “This investment affirms our shared commitment to growing Philadelphia as a world-class hub for growth industries, especially our life sciences and biotechnology sectors.”
“We were thrilled to partner with Brandywine Realty Trust on this innovative property, which will continue building momentum in this Philadelphia neighborhood while catalyzing life sciences development in the city,” said Mike Doty, Senior Director of Originations at Nuveen Green Capital. “By utilizing C-PACE to recapitalize the project post-completion, the sponsor will preserve liquidity while supporting sustainable building development.”
C-PACE-financed sustainability measures include upgrades to the building envelope, lighting and HVAC systems, and water conservation measures.
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.
Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org