Historic record volume in the Texan C-PACE programme
Jay Paul Company has closed a 227.5 million dollar C-PACE (Commercial Property Assessed Clean Energy) financing for the Springdale Green office campus in Austin. The debt facility serves to replace a previous construction loan for the 881,427 square foot site. It represents the largest C-PACE loan in the history of the state of Texas, exactly a decade after the programme was launched by the Texas PACE Authority (TX-PACE).
The campus is located at 1011 Springdale Road in East Austin. From 1948 to 1992, the site served as a tank farm, before Jay Paul Company submitted plans for the redevelopment to the City of Austin in May 2020. The main buildings were completed almost two years ago. The loan will primarily recapitalise energy and water efficiency measures already implemented across the property.
Flexibility for lettings in Austin
Cory Jubran, Senior Director of Originations at Nuveen Green Capital, explained that the long-term fixed-rate structure provides the borrower with the necessary leeway to achieve full occupancy across the campus. Despite general challenges in the Austin office market, momentum has noticeably picked up over the past six months. During this period, around one million square feet was let to tenants from the semiconductor manufacturing, technology, and defence sectors. The financing gives the sponsor the required time to execute its business plan in a targeted manner.
Nick Zolintakis, Chief Investment Officer at Jay Paul Company, pointed out that the transaction provides the Springdale Green project with a value-enhancing financing structure. He highlighted the role of Nuveen Green Capital, which navigated the Texan regulatory process on schedule.
Dub Taylor, Director of the Texas PACE Authority, emphasised that the 227.5 million dollar transaction demonstrates the maturity of the Texan PACE programme. The agreement shows how innovative financing models can create value well beyond the construction phase of a property.
- —Financing volume: 227.5 million dollars
- —Property: Springdale Green Campus (881,427 square feet)
- —Location: 1011 Springdale Road, East Austin
- —Purpose: Replacement of the construction loan and recapitalisation of efficiency measures
