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Wafra Capital Partners and Nightingale Properties have secured New York’s first C-PACE loan.
The $89M loan, financed by Petros PACE Finance, will be used to retrofit the development duo's new purchase, 111 Wall St., an office building spanning 1.2M SF across 25 floors, the lender announced Wednesday.
C-PACE loans are low-cost, long-term debt provided to commercial landlords to upgrade their building's energy systems. The $89M is the largest in the country, according to Petros.
"This transaction is a transformational event for the C-PACE industry because it officially launches potentially the largest C-PACE market in the country, New York City,” Petros PACE Finance CEO Mansoor Ghori said in a release. “We anticipate a ripple effect across the country as available capital increases and the benefits of the program become more widely known.”
The developers also recently secured $500M in acquisition and construction debt for the building the team bought in January from SKW Funding, PIMCO, Oaktree Capital and Bain Capital.
Local Law 97, passed in 2019, requires building owners to slash their carbon footprint by 40% of their 2005 emissions by 2030 and 80% by 2050. Landlords can give their buildings green face-lifts through retrofitting or other methods, like using renewable energy in buildings, Green Tech Media reports.
The measure has faced widespread scrutiny from the real estate world and beyond since it passed. During a Bisnow event last month, Douglas Durst said the law "punished developers who had already invested in making their buildings green.
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