Philadelphia Multifamily Property Lands $40M in C-PACE Financing

Image courtesy of Harry Strauss via pixabay

The Philadelphia Energy Authority, Nuveen Green Capital and Southern Land Company have landed a $40 million Commercial Property Assessed Clean Energy financing for a multifamily project.

Backing a 329-unit Philadelphia property, the financing marks Pennsylvania’s largest C-PACE deal yet.

Situated in the Callowhill neighborhood at 499 North 5th Street, the 12-story project will include some 15,000 square feet of retail space. The building will feature energy efficient design elements like sustainable roofing, insulation, windows, lighting and HVAC and water conservation measures.

Amenities will include a fitness center, rooftop deck, business center, co-working spaces and covered parking.

In prepared remarks, Emily Schapira, president and CEO of PEA, said the financing brings Philadelphia’s C-PACE projects to a combined total exceeding $160 million.

State law clears path for PACE

The project was eligible for C-PACE funding due to Senate Bill 635, which created an opportunity for multifamily commercial buildings to gain C-PACE financing, as well as Act 43 of 2022 which expanded upon Act 30 of 2018 to permit C-PACE financing for commercial projects in Pennsylvania. The same act allows for funding of multifamily commercial buildings comprised of five or more units, as well as indoor quality and building resiliency improvements.

In the midst of economic uncertainty, C-PACE financing is allowing developers and owners to continue their momentum on viable projects. Demand for the securitizations is expected to remain at an all-time high throughout this year as more states expand upon their current legislation.

Currently more than 37 states have adopted C-PACE enabling legislation. Proponents argue that its expansion nationally could help ease the affordability and housing shortage crises.

Last year a 125-unit mixed-use project in California was able to land $22.4 million in C-PACE financing, provided by StoneHill. The community will have 10,000 square feet of commercial space paired with one-, two- and three-bedroom affordable homes.