Jay Paul Co. Lands $220M C-PACE Loan for Bay Area Property

November 5, 2024

Office Featured Finance NewsMoreSan Jose West

Nuveen originated the second-largest such financing in the U.S. to date.

Exterior shot of 200 Park Avenue in San Jose, Calif. — The 965,000-square-foot office building at 200 Park Ave. rises 19 stories and has 65,000-square-foot average floorplates. *Image courtesy of CommercialEdge*

In the second-largest deal of its kind in the U.S. to date, Jay Paul Co. has obtained $220 million in C-PACE financing for 200 Park Ave., a 965,000-square-foot office building in San Jose, Calif. Nuveen Green Capital provided the financing in a JLL-brokered deal that brought NGC’s total originations volume to more than $3 billion.

The borrower used the funds to recapitalize the building’s sustainability and resiliency measures, as well as refinance existing debt. In October 2021, Jay Paul took out a $350 million construction loan originated by JPMorgan Chase, according to CommercialEdge information.

The 19-story building, the tallest in downtown San Jose, came online last year. The LEED Gold-certified property features floorplates averaging 65,000 square feet, 16 passenger elevators and about 2,900 car parking spaces.

Common-area amenities also include a 20,500-square-foot fitness center, 24,300 square feet of outdoor terraces and EV charging stations. The building has multiple sustainable features, including solar PV arrays, high efficiency lighting and insulated high performance envelope.

The transit-oriented property is close to a host of dining and retail options. San Jose Mineta International Airport is some 3 miles northwest.

JLL Capital Market’s Debt Advisory team representing the borrower comprised Director Matt Cimino and Senior Managing Director Bruce Ganong.

C-PACE loans pick up pace

The deal is part of a larger ongoing trend, as more and more investors and developers turn to C-PACE financing. According to PACENation, this type of loans involving commercial projects totaled nearly $7.2 billion at the end of December 2023.

Earlier this fall, Carlyle committed $1 billion to North Bridge ESG LLC to facilitate the firm’s origination of C-PACE loans. The partnership, reportedly designed to allow North Bridge to meet changing market demands on a broader scale, was Carlyle’s largest commitment to C-PACE at the time.