Nuveen Green Capital Closes $1B C-PACE Fund
Approximately 35 to 45 percent of the fund will be allocated to multifamily.
Nuveen Green Capital has reached a first close of more than $1 billion in capital commitments for Nuveen C-PACE Lending Fund IV, its fourth commercial property assessed clean energy financing vehicle. This latest close brings the total commitments across the fund series to $3 billion since its launch in 2023.
Fund IV is an alternative credit strategy that will deploy capital through C-PACE financing for real estate and infrastructure-related projects. The strategy provides owners and developers with long-term private capital for upgrades that make buildings more energy- and water-efficient as well as climate resilient.
This fund is building on the company’s 73 percent year-over-year growth, driven by its loan origination volume. Fund IV is 27 percent larger than Fund III, The Wall Street Journal reported. Fund III closed in July 2025 with $785 million in capital commitments. This fund is targeting $1.2 billion, according to a regulatory filing.
A growing strategy in multifamily finance
Multifamily is expected to account for roughly 35 to 45 percent of Fund IV’s final allocation, according to Alexandra Cooley, CEO & CIO of Nuveen Green Capital. The sector has consistently ranked among NGC’s top three asset classes for deployment, both by annual originations and fund allocations.
“Investor demand for multifamily exposure and attractive C-PACE deployment opportunities have been stable and strong over the last decade,” Cooley told Multi-Housing News.
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The Fund IV close will allow NGC to continue meeting demand from multifamily sponsors looking for construction financing with longer-term certainty. Cooley sees opportunities for the firm in transactions where traditional lenders have backed away due to current exposure or other considerations rather than the underlying quality of the real estate.
“C-PACE has become increasingly competitive as a debt product because we take a bottoms-up, long-term view of the underlying property,” Cooley said.
NGC has recently deployed C-PACE financing for a range of uses across the multifamily sector. Last week, NGC provided Millennium Partners with $281 million in C-PACE financing to recapitalize a 317-unit condominium component of a mixed-use tower in Boston. The deal took place under the PACE Massachusetts program.
At the start of this year, NGC provided the largest C-PACE financing in history for an office-to-residential conversion project in Washington, D.C. Post Brothers received $465 million from NGC along with a $110 million senior loan from Mavik for a 530-unit community known as The Geneva. Cooley said NGC is seeing increasing demand for this type of financing for conversions across the country.
C-PACE can play different roles depending on the structure of a multifamily capital stack, Cooley said. Banks tend to view C-PACE providers similarly to syndication partners, while non-bank lenders tend to view the financing as a super-senior A-note. For borrowers, the structure can provide additional flexibility and optionality as a project progresses.
On a smaller scale, Nuveen Green Capital closed on the first C-PACE deal in Idaho in February 2025 for Madison Station. Sweetwater Cos. is developing the 360-unit community, which received $15 million in C-PACE financing as part of a nearly $30 million financing package. The C-PACE component was used in lieu of a typical bank A-note, helping reduce the weighted cost of construction debt.
The broader C-PACE market has also expanded further this year. Anne Hill, senior vice president of Bayview PACE, wrote in a recent MHN Viewpoint that total market originations reached about $1.56 billion in the first half of 2026, more than double what it was during that same period in 2025.
