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

The post Philadelphia Energy Authority, Nuveen Green Capital, Riverwards Group Close $17 Million C-PACE Deal for East Kensington Multifamily Development first appeared on Philadelphia Energy Authority.

PHILADELPHIA – May 11, 2026  – Today, the Philadelphia Energy Authority (PEA) and Philadelphia Green Capital Corp. (PGCC), joined by City administration and state leaders, members of City Council, and former Council President Darrell Clarke, announced the 10-year results of the Philadelphia Energy Campaign, highlighting $2 billion of economic impact, more than 11,000 jobs created, and over $1.4 billion in energy savings for the City of Philadelphia and its residents.

Launched in 2016 in partnership with City of Philadelphia administration leadership and Philadelphia City Council, the Philadelphia Energy Campaign set ambitious goals: $1 billion of clean energy investments and up to 10,000 jobs by 2026, benefiting neighborhoods across Philadelphia. Results of a new study show the Campaign catalyzed $1.3 billion of economic investment, surpassing the investment target by 30 percent while exceeding the jobs goal.

The 10-year economic impact report produced by Econsult Solutions, Inc. (ESI) demonstrates how strategic investment in clean energy drives economic growth, reducing costs for individuals, local institutions, and municipal government, while delivering meaningful benefits for residents, businesses, and taxpayers.

“Our city’s clean energy is delivering cost savings – and jobs – to the benefit of Philadelphia residents and local businesses, which are top priorities for our administration,” said Mayor Cherelle L. Parker. “Our partnership with the Philadelphia Energy Authority has not only helped us get closer to a Safer, Cleaner and Greener city, but the positive economic indicators are off the charts. I am thankful to the many City departments that have worked collaboratively with PEA to help generate these impressive results.” 

“The Philadelphia Energy Campaign demonstrates that clean energy is an economic development strategy, a cost-saving strategy, and a public health strategy all in one,” said Philadelphia City Council President Kenyatta Johnson. “Results of the Philadelphia Energy Campaign signal what’s possible through collaboration, as clean energy touches every part of how our city functions. And by investing in workforce development, we are ensuring our residents can access these emerging opportunities, whether through jobs in the growing clean energy economy or related construction trades.”

With $14.7 million in City allocations over 10 years, PEA helped unlock over $1.3 billion in total investment – an extraordinary return of approximately 90 times the public dollars committed, underscoring PEA’s role as a responsible steward of public resources.

“The Philadelphia Energy Campaign shows what is possible when public investment is used to drive economic growth, create jobs and lower costs for residents,” said State Representative Jordan A. Harris, Majority Chairman of the House Appropriations Committee. “This work has helped generate more than $1.3 billion in investment, create more than 11,000 jobs and deliver real energy savings for Philadelphia. Just as importantly, the next phase will modernize public buildings, including health centers and homeless services facilities, so the people who live, work and receive services in these spaces are in safer, healthier and more comfortable environments.”

“Over the last ten years, the Philadelphia Energy Campaign exceeded every goal we set, and we redefined what’s possible when vision meets action,” said Emily Schapira, CEO of the Philadelphia Energy Authority. “With collaboration across government, schools, utilities, service organizations and industry, this initiative demonstrates clean energy crosses all sectors and all parts of our lives. Clean energy is not just one solution; it’s everything: jobs for people, revenue for the city, and healthier, more resilient communities.”

The Campaign generated significant new revenue for the City of Philadelphia and the Commonwealth of Pennsylvania. Over ten years, clean energy investments helped produce more than $25 million in tax revenue for Philadelphia and over $50 million statewide, funding that supports essential services, infrastructure, and community priorities.

Overall economic activity generated by the Philadelphia Energy Campaign includes:

• $2 billion in economic output in Philadelphia, supporting 11,415 jobs, $698.1 million in employee compensation, and $25.3 million in tax revenue; 
• $2.4 billion statewide, supporting 12,855 full-time equivalent jobs and $801.4 million in employee compensation as well as $50.1 million in tax revenue; and 
• A resulting $73.6 million in combined tax revenue for the City and Commonwealth.

PEA programs modernize the region’s energy infrastructure. Clean energy projects have delivered over $1.4 billion in savings, while helping to cut municipal carbon emissions by nearly half, improving health and safety for those living and working across Philadelphia. The result is a ripple effect: savings generated by these programs are reinvested into local economies, the jobs created help to sustain our communities, and the improved infrastructure enhances public safety, health, and quality of life. 

Continuing this momentum, PEA and the City of Philadelphia are next retrofitting 14 major municipal buildings — among the City’s largest energy users — including City Hall, the Municipal Services Building, One Parkway Building, and the Criminal Justice Center. The project involves collaboration between PEA, the Office of Sustainability, Office of Homeless Services, Department of Public Health, and Department of Public Property. 

This Quadplex + Community Health project will deploy energy efficiency improvements throughout the City’s four large downtown buildings, seven health centers, and three homeless services centers, resulting in greater comfort and quality of care for residents, and long-lasting, more affordable, healthy City infrastructure.

“Through the Philadelphia Energy Campaign, the City is investing in clean energy and advancing ambitious energy goals that deliver a trifecta of environmental, quality of life, and economic improvements,” said Elizabeth Lankenau, Director of the Philadelphia Office of Sustainability. “The Quadplex + Community Health project is an example of an ongoing initiative that goes beyond helping the City reach its goal of carbon neutrality; it is saving energy and lowering costs, while improving the quality of facilities where residents access critical services.”

Read the full report to learn more about the transformative Philadelphia Energy Campaign and what it means for Philadelphia’s future.

The post Turning $14.7 Million into $1.3 Billion: Philadelphia Energy Campaign Surpasses Goals, Collaborates with City to Grow Local Clean Energy Economy first appeared on Philadelphia Energy Authority.

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

The post Nuveen Green Capital and Brandywine Realty Trust Close Largest C-PACE Financing in Pennsylvania History first appeared on Philadelphia Energy Authority.

• Learn more: 2024-2025 Philadelphia C-PACE Program Report

More property owners are turning to Philadelphia C-PACE than ever before. The program has supported a range of commercial, industrial, healthcare, and mixed-use multifamily developments. Over the past two years, the program has delivered 411 new rental units to Philadelphia’s housing market. Several projects involve repeat borrowers, underscoring growing confidence in the program and its ability to deliver value across project types.

“Record levels of C-PACE financing are strengthening the resilience and sustainability of high-performance buildings across the city,” said Lisa Shulock, Director of Commercial Programs. “Continued program growth reflects rising demand from property owners seeking flexible, low-cost capital to improve building performance, reduce operating costs, and lower carbon emissions.”

C-PACE financing enables property owners and developers to fund energy efficiency, water conservation, renewable energy, resiliency, and indoor air quality improvements. By deploying private capital, the program helps borrowers lower their occupants’ utility bills, improve health and safety, and future-proof their buildings.

“With the support of this business-friendly lending program, we were able to invest in energy-efficient infrastructure which would not be possible with traditional bank lending,” said Mike Rhoads, Vice President, Rhoads Industries.

2025 Project Highlights

The Philadelphia C-PACE Program closed financing on a diverse set of high-impact projects this year, including:

• Harper Square Tower – The largest C-PACE transaction in Pennsylvania to date, this $60-million project demonstrates how C-PACE can support large-scale development while advancing energy performance and long-term affordability.
• Ford Road Medical Center – An $11 million C-PACE investment enabled critical energy and building system upgrades at this medical facility, improving efficiency and resiliency.
• 7078 Lincoln Drive – In November, the Philadelphia Energy Authority, PACE Equity, and Lincoln 7078 LLC closed on $1.1 million in C-PACE financing for a new construction multifamily property. The five-story, 39,000-square-foot, mixed-use building will incorporate energy efficiency and water conservation measures, exceeding Philadelphia building code requirements by 23 percent. 

Program Updates

In response to evolving market conditions and to ensure continual program improvement, the Philadelphia C-PACE Program released updated Program Guidelines in 2025. A key change expands refinancing eligibility, allowing property owners to apply for retroactive C-PACE financing up to three years after project completion, extending the previous two-year window and providing greater flexibility for completed projects.

The Philadelphia C-PACE Program remains a critical tool for unlocking private capital, strengthening building performance, and supporting new housing and economic development across the city. 

Reach out to see if C-PACE financing is right for your project: CPACE@philaenergy.org.

The post Philadelphia C-PACE Program Closes $312 Million in Financing first appeared on Philadelphia Energy Authority.

Pearl Properties has received $60 million in C-PACE financing for construction of Harper Square, a 362,000-square-foot multifamily tower overlooking Rittenhouse Square. Once constructed, the 500-foot-tall, 45-story skyscraper will stand as the city’s tallest apartment building. 

The deal will fund multiple energy efficiency measures, including energy-recovery systems and a building automation system. Overall, Harper Square will use 36-percent less energy than required by the City’s building energy code.

“The historic size of the Harper Square deal signals a new level of market confidence in C-PACE,” said PEA Director of Commercial Programs Lisa Shulock. “Commercial real estate developers and institutional investors now recognize C-PACE as a stable, scalable financing mechanism that complements traditional capital stacks, all while advancing energy efficiency and sustainability goals.”

C-PACE is providing more than one third of the luxury building’s $173 million in construction funds. Investment management firm Barings financed the remaining $113 million.

“Pearl Properties has been proud to shape the fabric of Center City through luxury developments that stand the test of time,” said Jim Pearlstein, President of Pearl Properties.

“This project is not only a milestone for our company but a landmark for the city — a new icon that reflects the strength and vitality of Philadelphia’s Rittenhouse Square community,” added Reed Slogoff, Pearl Properties Principal.

“Successful closing of Harper Square reflects strong collaboration between CounterpointeSRE, Barings, the Philadelphia Energy Authority, and Pearl Properties,” said Eric Alini, CEO of CounterpointeSRE. “By providing full-stack C-PACE and mortgage financing, CounterpointeSRE and Barings streamlined the underwriting process, reduced the weighted cost of capital, and accelerated the project’s funding timeline.” 

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 or join the next C-PACE Open Meeting on December 11. Register here.

The post PEA and CounterpointeSRE Close Financing for Harper Square Tower, Pennsylvania’s Largest C-PACE Project to Date first appeared on Philadelphia Energy Authority.

The 138,157-square-foot property located in the Wynnefield Heights neighborhood is managed by BG Capital. The owners borrowed $10,963,845 in C-PACE financing from Nuveen Green Capital, a leader in sustainable commercial real estate financing solutions. 

C-PACE provided retroactive financing following the initial construction of the facility’s infrastructure. BG Capital and building occupant Malvern Treatment Centers are now finalizing tenant improvements with the infusion of capital provided by C-PACE.

“We are thrilled to have successfully closed our third C-PACE loan with Nuveen Green Capital and second with the Philadelphia Energy Authority — this time marking our first use of C-PACE financing for recapitalization,” said Joe Byrne, BG Capital Managing Partner. “C-PACE continues to prove itself as an innovative and highly effective financial tool, and we believe its strategic value within a project’s capital stack will only grow in the years ahead.”

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. 

“C-PACE continues to be a critical tool for building owners and developers to close funding gaps, refinance projects, and achieve the operational and environmental benefits made available from energy-efficient technologies,” said PEA Director of Commercial Programs Lisa Shulock. “BG Capital demonstrated a clear commitment to delivering building systems that would support patient comfort, care and recovery. By using 46 percent less energy than minimum energy code, 3905 Ford is a model example of high-performance building design.”

The renovation of 3905 Ford Road features LED lighting, improvements to the building envelope, and high-efficiency heating, ventilation and air conditioning (HVAC) systems. Energy-efficient equipment include variable refrigerant flow (VRF) heat pumps throughout the common areas and packaged terminal heat pumps (PTHPs) within the resident rooms.

“We are pleased to have partnered with BG Capital again to provide C-PACE financing for another project through the City of Philadelphia’s C-PACE program. C-PACE is a proven and adaptable financing tool unlocking capital for new developments as well as for existing facilities,” said Mike Doty, Senior Director of Originations, Nuveen Green Capital. “The creative use of C-PACE to recapitalize this recently reimagined property enabled BG Capital to realize meaningful savings while helping to ensure the building’s long-term profitability. This closing underscores C-PACE’s efficacy as a cost-effective tool for projects at varying stages of completion.”

Interested in learning more about C-PACE? Contact us at cpace@philaenergy.org.

C-PACE Open Meetings take place on the last Thursday of each month. Register here.

The post Philadelphia C-PACE Program Enables $11 Million in Capital for Medical Building Renovation first appeared on Philadelphia Energy Authority.

Three documents are available for review:

1. Redlined version of the Program Guidelines against the version which is currently in effect. 
2. Clean version of the proposed Program Guidelines
3. Slide deck of major changes made to Philadelphia’s Program Guidelines since the original version published in October 2019.

The deadline for submission is January 18, 2022. 

A Google Form has been created to submit comments. 

Please submit only one response per organization.

Email CPACE@philaenergy.org if you have any questions. If you are unable to use Google Forms, email CPACE@philaenergy.org and we will make other arrangements.

The post Philadelphia C-PACE Program Guideline Public Comment Period first appeared on Philadelphia Energy Authority.

Philadelphia, PA — The Navy Yard Building 57 (“Building 57”), home to Rhoads Industries, located at 1900 Kitty Hawk Avenue, Philadelphia, PA 19112, utilized $15 Million of Commercial Property Assessed Clean Energy (C-PACE) capital to finance the high efficiency interior and exterior improvements incorporated into the renovation of approximately 270,000 square feet of the building.

Building 57 is a historic, heavy industrial manufacturing and testing facility located in the Philadelphia Navy Yard. Originally built in 1919 and listed on the National Register of Historic Places, Building 57 has been instrumental in the constructing, rehabilitating and modernizing of U.S. Navy Vessels. When Rhoads Industries Inc. (“Rhoads”) acquired Building 57 in 2014, it required substantial rehabilitation to become a state-of-the-art manufacturing and testing facility.

The energy efficiency renovations of A & B Bays of Building 57 is being financed with private capital from CCG PACE Funding, enabled by the City of Philadelphia’s C-PACE program. The program is part of the City’s plan to significantly reduce the energy usage of its buildings by making it easier for property owners to pay for energy efficiency, water conservation, and renewable energy projects.

Proceeds from the C-PACE loan funded the installation of energy efficiency measures, including high efficiency HVAC, interior LED lighting and controllers, building envelope (roof and wall) systems, and eligible design and soft costs. The energy efficiency and natural gas conservation improvements to Building 57 will help the property save approximately 19,870 metric tons of CO2-e emissions over the life of the project, a 36% reduction in emissions above Philadelphia’s energy code.

“Funding through the C-PACE program has given us the opportunity to outfit our facility in anticipation of our customers’ needs,” says Mike Rhoads, Vice President and fourth generation owner of Rhoads Industries. “This construction provides the capacity of an additional 140,000 square feet of heavy manufacturing space, while at the same time mitigating the drain on the City’s and Navy Yard’s energy infrastructure.”

Councilmember Kenyatta Johnson (2nd District), who represents the Navy Yard, is “excited about C-PACE as a tool for financing energy efficiency investments and supporting the general growth we are seeing in the Navy Yard. This development is creating family-sustaining jobs which are essential to a sustainable future.”

Philadelphia City Councilmember Derek S. Green (At Large) noted that “this project is a great example of the role we anticipated C-PACE would play in bringing private sector investment to our city to help businesses save money, fight climate change, improve public health and create additional jobs. Rhoads Industries has invested $15MM in energy efficiency and as a result will be using a third less energy than the City’s energy code requires, and the code is relatively rigorous.”

“As the largest project to date in Pennsylvania, the Rhoads project illustrates how C-PACE can attract private capital and drive economic development in Philadelphia,” said Matt Stern, Senior Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “This project creates jobs, cuts energy costs, and fights climate change. Rhoads Industries’ leadership on energy efficiency serves as an important model for other industrial facilities.”

“Rhoads Industries, the Philadelphia City Council, the Philadelphia Energy Authority, and the many stakeholders participating in the C-PACE financing of Building 57 should be recognized as being among the early innovators in Philadelphia and Pennsylvania to utilize the long-term, low-cost fixed rate financing that C-PACE provides. Following the Building 57 example, countless other commercial properties located throughout the region are eligible to utilize C-PACE to fund energy efficient improvements that would help to ensure their long-term financial viability while reducing their carbon footprint and creating new jobs. These win-win outcomes are exactly what the C-PACE Program was designed for” observed Paul Hoffman, Managing Director of CCG PACE Funding.

About CCG PACE Funding

CCG PACE Funding, LLC provides long-term, flexible financing to owners of large-scale commercial properties located throughout the United States that intend to utilize C-PACE financing for energy efficiency, water conservation, renewable energy, seismic and wind improvements as part of their capital stacks. The firm’s C-PACE financings are individually customized to meet the needs of each stakeholder. CCG PACE Funding is affiliated with CityScape Capital Group, LLC, an entity that has over 25 years of experience funding more than $1.6 Billion of debt and equity into highly structured transactions located throughout the country involving historic, new markets, energy and low-income housing tax credits. For additional information, please visit www.ccgpace.com.

About Philadelphia Energy Authority

The Philadelphia Energy Authority (PEA) is an independent municipal authority created in 2010 to advance energy affordability and sustainability for the City. PEA has facilitated over $167 million in clean energy projects in Philadelphia since launching the Philadelphia Energy Campaign in 2016, creating more than 1,300 jobs. As Program Administrator, PEA reviews and approves applications, manages the billing and lien processes, engages in market education and supports the growth of the Philadelphia C-PACE program. For details, visit www.PhiladelphiaCPACE.org.

About Rhoads Industries, Inc.

Rhoads Industries, Inc. is a 125-year-old, privately held, industrial fabrication shop founded in Philadelphia that offers a total solution for industrial services and support to commercial and government customers, including the Department of Defense. Rhoads offers a diverse range of technical certifications to provide industrial services for a broad variety of heavy steel and metal fabrication projects, as well as complex precision assemblies, equipment installations and a range of maritime related services. Rhoads has become the resource for industrial maintenance, custom fabrication, and industrial installation/piping for industry leaders based on a reputation for quick response, on time delivery, ingenuity, safety, reliable performance and quality workmanship.

Rhoads is implementing a business plan with the objective of building and equipping a state-of-the-art facility to serve as the preeminent industrial enterprise in the Philadelphia Navy Yard. With the acquisition and rehabilitation of Building 57, Rhoads has created a new East Coast Water Front operation. Rhoads has also secured a competitive position in its traditional metal fabrication and industrial services business, while expanding into the shipbuilding/ship repair and maritime services industry within the Delaware Valley and beyond. For more information, please refer to www.rhoadsinc.com.

Transaction Professionals

Financial Advisor to Rhoads Industries – Robert C. Jacobs, RCJ Consulting LLC, www.rcjconsulting.com

Counsel to Rhoads Industries – Marcy N. Hart, Esq., Holland & Knight LLP, www.hklaw.com

Counsel to CCG PACE Funding, LLC – David A. Sykes, Esq., Chapman and Cutler LLP, www.chapman.com

View the Rhoads case study and disclosure here.

The post CCG PACE Funding Closes $15 Million in C-PACE Financing for Building 57 in Philadelphia’s Navy Yard first appeared on Philadelphia Energy Authority.

CONTACT:
Lisa Shulock, Philadelphia Energy Authority
215-880-8298 (cell)
Lshulock@philaenergy.org

Iconic Philly Met Uses C-PACE for Retroactive Financing of $6 Million for Energy Efficiency Investments in Philadelphia

Philadelphia, November 23, 2020 –

The Philadelphia Energy Authority, Enhanced Capital  and EB Realty Management (“EBRM”), owners of The Met, announced today the financial close of the first project in Pennsylvania to retroactively use Commercial Property-Assessed Clean Energy (C-PACE) financing. EBRM is borrowing $6,000,000 in C-PACE financing from Enhanced Capital to pay for energy efficiency upgrades for the former Philadelphia Metropolitan Opera House, renovated in 2018.

Commercial Property-Assessed Clean Energy (C-PACE) financing allows commercial property owners to borrow money for energy efficiency, renewable energy, and water conservation projects. Repayments are made via a special assessment similar to a property tax assessment.

Until the pandemic hit, “the reopening of The Met has provided an economic boost to the North Broad Street corridor, particularly neighboring restaurants, hotels and businesses,” said Ian McCulley, Director at Enhanced Capital. “Using retroactive C-PACE was a great solution to strengthen the capital stack and repay some higher cost debt. Philadelphia allows retroactive financing up to two years after project completion, and it can be a useful tool for building owners looking to transition from construction to permanent financing.”

“These are not easy times for any of us, especially for cultural institutions,” said Emily Schapira, Executive Director of the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “We are proud to provide a tool like C-PACE that can improve liquidity and reduce costs for commercial properties during this pandemic. C-PACE allowed The Met to pull even more value out of their energy efficient retrofit.”

With this PACE financing, “we are one step closer to curating the North Broad Corridor of Philadelphia into a global example of successful impact development,” said Christopher Cordaro, Vice President at EBRM.

In C-PACE lending in Pennsylvania, existing mortgage holders must consent to the C-PACE financing. In this case, both PIDC and Fulton Financial provided consent. Sue Lonergan, Fulton Bank’s regional president for Southeastern Pennsylvania, said of the consent, “Fulton Bank has been a proud supporter of The Met project, and we’ve seen the positive impact this historic gem has had on the local economy and the community in general. It made sense to use C-PACE to help reduce the owner’s monthly payments to get through this extraordinarily difficult time.”

Philadelphia City Council President Darrell Clarke represents the 5^th District, which includes the stretch of North Broad Street where The Met is located. “We are delighted to see that C-PACE not only facilitates investment in energy efficiency, but also as in this case, has helped strengthen an institution that has been a key part of the North Broad Street revitalization.”

# # #

About the Philadelphia Energy Authority

The Philadelphia Energy Authority (PEA) is an independent municipal authority created in 2010 to advance energy affordability and sustainability for the City. PEA has facilitated over $136 million in clean energy projects in Philadelphia since launching the Philadelphia Energy Campaign in 2016, creating more than 1,300 jobs.  As Program Administrator, PEA reviews and approves applications, manages the billing and lien processes, engages in market education and supports the growth of the Philadelphia C-PACE program. For details, visit www.PhiladelphiaCPACE.org.

About Metropolitan Opera House/EBRM:

EBRM is the owner of the Philly Met, a performance venue managed by Live Nation. The Met is located on North Broad Street, just minutes from downtown Philadelphia.

About Enhanced Capital:

Enhanced Capital, with offices in New York City and New Orleans, is a diversified private investment firm focused on financing small and mid-sized companies overlooked by traditional sources of capital. Founded in 1999, many of Enhanced Capital’s funds are backed by institutional capital and finance businesses across targeted investment, asset management and tax credit platforms. In addition, the firm participates in a variety of state and federal public-private investment programs, including the federal SBIC program. For more information, visit www.enhancedcapital.com.

The post Iconic Philly Met Uses C-PACE for Retroactive Financing of $6 Million for Energy Efficiency Investments in Philadelphia first appeared on Philadelphia Energy Authority.

Philadelphia Energy Authority held a webinar on November 5, 2020 about Philadelphia’s Building Energy Performance Policy, commonly known as Building Tune-Up, and how C-PACE can be used to achieve compliance. The final Building Tune-Up regulations were issued in October 2020. The law was motivated by the need to reduce the carbon footprint of commercial buildings. The law mandates that all large buildings must submit a certification of high energy performance to the city’s Office of Sustainability or conduct tune-ups.

Lisa Shulock from the Philadelphia Energy Authority moderated the panel and she was joined by Zach Greene from the City of Philadelphia’s Office of Sustainability, the City agency responsible for overseeing Building Tune-Up, Dave Ferro from Pennoni, an engineering firm, and Stephen Bevilacqua from REVL Capital Group, a C-PACE capital provider.

C-PACE is a financing tool that provides long-term funding for energy efficiency, renewable energy, and water conservation projects. C-PACE financing may be of interest to commercial building owners who want to upgrade their energy systems to achieve high energy performance as an alternative to conducting regular tune-ups.

This bill is directed at all non-residential buildings with indoor floor space of at least 50,000 sq. ft. This includes office buildings, retail stores, municipal buildings, hospitals, schools/universities, and more.

Greene explained that the first compliance deadline is September 30, 2021 for buildings larger than 200,000 Sq. Ft. However, they are granting 6-month extensions due to COVID. The last group of buildings which are between 50,000 and 70,000 Sq. Ft. will need to comply by September 30, 2024.

The first way to comply with this new requirement is to conduct a tune-up every five years. Tune-ups must address base building systems including:

• Building System Maintenance & Repairs
• HVAC Operations and Controls
• Lighting System Assessment
• Domestic Hot Water and Water Usage
• Building Envelope

The tune-ups must be overseen by a “Qualified tune-up specialist” – defined as a licensed Professional Engineer or Certified Energy Manager with at least 7 years of experience. The specialist must be a third-party to the building, unless it is within a large portfolio.

The second pathway is through several high-performance compliance options including ENERGY STAR certification, gold rating or higher for USGBC LEED Operations and Maintenance v4, net zero certification, and many others.

Greene wrapped up by sharing key takeaways: the policy is focused on the operations and maintenance of a building and its existing systems, it does not require capital improvements, it does not require buildings to meet specific levels of efficiency, and the policy aims to increase tenant comfort and decrease energy costs and carbon emissions.

Dave Ferro from Pennoni stated that tune-ups “are all about an effort to control costs, improve occupant comfort, reduce wasted energy and, in many cases, improve cash flow.” Ferro stated that when evaluating a building, they like to start with an ASHRAE level 1 walk-through. “As an engineer, you should be able to walk into a level 1 building and find all the low hanging fruit.” Once you get the level 1 understanding, you can proceed to level 2 and identify no-cost/low-cost energy efficiency measures that can provide payback. One thing that certain engineering companies offer including Pennoni is ongoing monitoring of energy usage and identification of potential problems as an additional way to manage energy use.

If buildings have not yet achieved any of the qualifying high-performance standards, owners and managers have the option of investing in systems to attain one of the compliance options and use C-PACE as the financing tool. Bevilaqua noted the key features of C-PACE include the term of the loan can be up to the maximum useful life of the equipment up to 30 years; the first payment can be delayed two years; the lien stays with the property, not the building owner; financing rates are in the “high 4’s” to 7%; the long term assessment allows for deeper investments in energy efficiency and/or reduces monthly payments for borrowers; and PACE requires no upfront cash and can be treated as an off-balance sheet item. Bevilaqua stated that C-PACE typically will cover up to 30% of a project’s hard cost for new construction and up to 100% of the costs of energy upgrades.

To obtain an energy survey to develop the C-PACE financing package, building owners can reach out to Qualified Engineers listed on the Philadelphia C-PACE website. The owner also needs to select a Capital Provider to provide a term sheet and work with the owner throughout the process of obtaining C-PACE financing.

To qualify for C-PACE in Philadelphia the project must be a commercial or industrial property. C-PACE can be used for upgrades to existing buildings or for gut rehab and new construction projects. The minimum financing amount for a C-PACE project in Philadelphia is $100,000. There is a maximum 95% Lien-to-Value limit and up to a 30-year financing term. There is also the option of retroactively using C-PACE financing with a two year look back.

Shulock wrapped up the webinar by discussing the first two Pennsylvania C-PACE projects which are located in Philadelphia. The first was J-Centrel  in which Twain Financial provided $1,500,000 in financing to Shift Capital for a gut rehab project. The Olde City Day School obtained $519,000 in C-PACE financing from Greenworks Lending to install rooftop solar. It was the first solar project in Pennsylvania to use C-PACE financing.

The Building Tune-Up website can be found here. To watch the recording of the webinar, click here. The slides can also be found on the Philadelphia C-PACE program resources page in the Philadelphia C-PACE webinars section.

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