Media Contacts:
Ben Block
Philadelphia Energy Authority
215-688-5134 | media@philaenergy.org
Lesley Osborn
Nuveen Green Capital
475-291-6346 | Lesley.Osborn@nuveen.com
Philadelphia Energy Authority (PEA), Nuveen Green Capital, and Riverwards Group closed $17.3 million in Philadelphia Commercial Property Assessed Clean Energy (C-PACE) financing to support construction of a new 155-unit multifamily apartment building in Philadelphia’s East Kensington neighborhood.
The six-story development at 2507 Almond Street will include high-efficiency heating, ventilation, and air conditioning (HVAC) and building envelope upgrades, among other improvements. Construction on the $37-million development is expected to be complete by 2028.
C-PACE financing covers 100% of the project’s eligible energy efficiency and water conservation improvements. These upgrades are projected to avoid 360 megawatt hours (mWh) of electricity and 1.5 million gallons of water per year, reducing the equivalent of 158 metric tons of annual carbon emissions. Overall, the project is anticipated to outperform Philadelphia energy code requirements by 23.5%.
The transaction is the latest example of how Philadelphia’s C-PACE program supports high-performance building upgrades, while reducing air pollution and water consumption for occupants and surrounding communities.
“Each new Philadelphia C-PACE project builds upon the economic and environmental progress we’re seeing across the city,” said Lisa Shulock, PEA Director of Commercial Programs. “C-PACE financing is helping developers and building owners reduce utility costs, create healthier and more resilient communities, while moving Philadelphia’s clean energy economy forward.”
Since launching in 2020, Philadelphia C-PACE has become one of the nation’s leading municipal C-PACE programs, facilitating $417 million in funds toward Philadelphia’s building and construction sectors, unlocking more than $1.6 billion of overall investment.
“C-PACE financing continues to prove its value as a tool for unlocking meaningful cost savings and structuring creative capital solutions for developers in Philadelphia and across the U.S.,” said Mike Doty, Senior Director of Originations at Nuveen Green Capital. “We’re proud to partner once again with PEA and Riverwards Group on this $17.3 million C-PACE financing for a notable project. The competitive spread, combined with an innovative tranching structure, delivered a lower cost of capital for the sponsor without diluting equity. This closing is a great example of how C-PACE can meaningfully improve a sponsor’s cost of capital and optionality while driving sustainable construction. We look forward to continuing to deliver C-PACE financing for commercial real estate projects across Philadelphia.”
PEA, Nuveen, and Riverwards Group previously closed the first multifamily Philadelphia C-PACE deal. Riverwards Group received $18 million in funding for 2200 E. Somerset, a 220-unit apartment in Port Richmond.
“At Riverwards Group, our goal is to develop housing that creates long-term value for residents, neighborhoods, and the city,” said Mo Rushdy, Riverwards Group Managing Partner. “We’re excited to partner with Nuveen to invest in higher-performing building systems that reduce energy and water consumption without compromising the project’s financial viability.”
About Philadelphia Energy Authority
Philadelphia Energy Authority (PEA) is an independent municipal authority advancing projects and programs that deliver on the City of Philadelphia’s most urgent priorities—lower bills, stronger infrastructure, safer neighborhoods, and quality jobs. Since 2016, PEA has supported over $1.3 billion in investment, creating more than 11,000 jobs in Philadelphia and driving $2.4 billion in economic benefits across Pennsylvania. To learn more visit philaenergy.org.
About Nuveen Green Capital
With over $5 billion originated, Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the $1 trillion+ asset manager and wholly owned subsidiary of TIAA. The company, which was founded by C-PACE industry pioneers who helped design the nation’s first successful statewide C-PACE program, has grown to offer a market-leading suite of accretive CRE financing products and a full-service lending platform with all underwriting, legal, and asset management functions executed in-house. To learn more, visit: Nuveen.com/greencapital