J
ay Paul Company has secured a $200 million C-PACE financing deal from Nuveen Green Capital to fund its 19-story office building at 200 Park Avenue in San Jose. The 971,000-square-foot tower was completed last year next to CityView Plaza, a stalled development project that Jay Paul is seeking to revive. Newmark is now marketing the vacant office space for lease, with brokers Phil Mahoney and Mike Saign holding the listing.
The C-PACE financing program allows building owners to borrow at low rates to make energy upgrades, which helped attract Nuveen Green Capital's investment. This type of financing provides money to landlords for energy-efficiency improvements without being a traditional loan. Instead, it's a property tax assessment paid back over time at a fixed rate.
The deal indicates that Nuveen Green Capital believes Jay Paul can fully lease its offices in Downtown San Jose, where office vacancy rates were 35.6% earlier this year. Jay Paul Company has developed 12 million square feet of offices in Silicon Valley and owns properties in other major cities, including Santa Cruz, San Diego, and Austin, Texas.
