In the first multifamily C-PACE deal completed in New York City, North Bridge ESG LLC announced the closing of $8.5 million in C-PACE financing to support infrastructure upgrades at Herald Towers, a three-tower apartment complex located at 50 West 34th St. in Midtown Manhattan, measuring nearly one million square feet.
C-PACE will enable upgrades to enhance operational efficiency, reduce energy consumption and align the property with New York City’s long-term sustainability and carbon-reduction goals under Local Law 97. The financing will help modernize energy systems across the residential portion of property, which comprises 690 residential units.
North Bridge’s C-PACE financing brings long-term, fixed-rate capital into the structure at a significantly lower cost than other forms of subordinate financing, enabling the sponsor to pursue critical infrastructure upgrades.
Building owner JEMB Realty is deploying C-PACE to replace aging heating and cooling systems with electrified, high-efficiency equipment that reduces both carbon emissions and operating expenses while improving long-term building performance and ultimately increasing collateral value. In 2019, New York City enacted Local Law 97, establishing some of the nation’s most comprehensive building emissions standards. C-PACE helps owners integrate energy efficiency and decarbonization upgrades into their capital plans by financing up to 100% of eligible hard and soft costs.
“This transaction signals the growing institutional acceptance of C-PACE as a credit solution that supports long-term asset value,” said Laura Rapaport, founder and CEO at North Bridge. “This financing demonstrates how New York City’s C-PACE program can meaningfully contribute to the City’s electrification and retrofit goals and support significant building improvement projects.”
