Greenworks Lending Raises $150M in Capital

DuPont Building in Wilmington, Del. Image courtesy of Greenworks Lending

Greenworks Lending fortifies its ability to offer Commercial Property Assessed Clean Energy (C-PACE) financing amid the economy-ravaging spread of COVID-19 with the raising of committed capital from Nuveen. Nuveen, the investment manager of TIAA, recently came through with a $150 million investment.

Greenworks remains the largest provider of C-PACE financing in the U.S., and with Nuveen’s capital commitment, the firm is well-positioned to continue supporting owners and developers of commercial, multifamily and non-profit real estate who are seeking assistance through the energy financing program. With loans from Greenworks, owners get the monetary backing to address obligations ranging from energy-saving retrofits, rehabilitations and repositionings, as well as the completion of capital stacks. The new Nuveen investment is a timely transaction.

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“Prior to COVID hitting, we were seeing a huge number of new construction deals apply for financing. With COVID, cash preservation is a primary concern for many business owners, so we’ve seen a shift in demand toward providing liquidity for stabilized buildings or additional capital for buildings where construction is already underway,” Alexandra Cooley, co-founder & COO of Greenworks Lending, told Commercial Property Executive. Guggenheim Securities LLC structured the deal with Nuveen, which marked the investment manager’s third capital commitment to Greenworks in three years.

Another Good Year

2020 had already proved to be a busy year for Greenworks before the coronavirus took hold in the U.S. The lender, which provides financing in 22 states and the District of Columbia, has closed on a host of deals, including the first C-PACE financing transaction in the State of Delaware.

Alexandra Cooley, Greenworks Lending. Image courtesy of Greenworks Lending

Greenworks provided $3.9 million in upfront capital for energy-efficient upgrades at the historic 1 million-square-foot DuPont building in Wilmington. Currently, the global headquarters of The Chemours Co., the DuPont Building is undergoing a redevelopment at the hands of owner The Buccini/Pollin Group and will ultimately be reintroduced as a mixed-use destination. The Greenworks-funded energy-efficient upgrades will yield estimated savings totaling roughly $14.2 million over the lifespan of the equipment and will support environmental benefits equivalent to the reduction of 2,670 metric tons of CO2 emissions on an annual basis.

“As C-PACE availability has expanded across the country, we’ve seen a huge uptick in demand from sponsors and developers in the past five years because the value proposition is so strong and C-PACE financing can meaningfully bring down the cost of capital for developers,” Cooley added.