Darien: Greenworks Lending from Nuveen Completes Largest 144A Securitization of C-PACE Assets

DARIEN, Conn., Dec. 16, 2021 — Greenworks Lending from Nuveen, the nation’s leading C-PACE capital provider dedicated to funding energy performance-enhancing commercial, multi-family and non-profit real estate projects, announced today that it has closed on the largest securitization of C-PACE backed assets in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

The transaction totaled $173M in asset backed notes collateralized by commercial property assessed clean energy assets, with the senior tranche receiving a AAA rating from DBRS Morningstar. Truist Securities, Inc. served at structuring agent and joint bookrunner, Guggenheim Securities, LLC served as joint bookrunner, and ING Financial Markets LLC served as co-manager. Truist Securities, Guggenheim, and ING served as co-green structuring agents.

“This is the first 144A C-PACE transaction in over three years, signaling the arrival of the C-PACE market and its mission to mitigate climate change as an established asset class. By expanding Greenworks’ investment base and creating a scalable issuance structure, we are well set up to provide the most consistent and competitive source of low-cost, institutional capital to real estate owners looking to make smart energy investments in their buildings,” said Alexandra Cooley, CIO & Co-Founder of Greenworks Lending from Nuveen.

“Greenworks continues to be a leader and an innovator in the C-PACE market, having been the first to both securitize and make C-PACE an institutional asset class. They have been the pioneer in the C-PACE market and their vision has set them apart,” said William Huffman, Head of Nuveen Equities and Fixed Income. “This deal exemplifies the market’s support of Greenworks’ mission to make sustainability a smart financial decision for commercial real estate owners.”  

Greenworks Lending has been at the forefront of the C-PACE industry since its inception. In 2017, Greenworks completed the industry’s first rated securitization of C-PACE assets. 

Greenworks’ recently completed 144A transaction reinforces the organization as an innovator in the C-PACE capital markets space. In addition to being the largest 144A securitization of C-PACE assets to date, this transaction represents the first C-PACE securitization with rated notes secured by net interest margin.

Led by several of the industry’s policy developers and standard-setters, Greenworks Lending is a private capital provider uniquely dedicated to funding commercial real estate through C-PACE. Greenworks has provided financing to hundreds of commercial properties and is active in more than 25 states. Over the past year, the market has grown significantly with first transactions closing in New York City, Chicago, Boston, and Philadelphia. More and more cities and states are implementing this accretive financing tool as local governments move to incentivize commercial property owners to be more energy efficient, and owners seek to find more affordable ways to upgrade their properties. 

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