Nuveen Green Capital and Brandywine Realty Trust announced the closing of $87.3 million in C-PACE financing, which includes $30 million of capital for future tenants at 3151 Market Street in Schuylkill Yards, the latest addition to West Philadelphia’s life sciences and mixed-use development hub. Financing is administered by the Philadelphia Energy Authority.
The transaction represents the largest C-PACE financing in Pennsylvania’s history and the first for a publicly traded real estate investment trust (REIT) in recent history.
C-PACE financing positions Brandywine Realty Trust to continue executing its vision for Schuylkill Yards, a 14-acre mixed-use, transit-oriented development located in Philadelphia’s University City submarket. 3151 Market is a recently completed 494,530-square-foot, 12-story lab and office building designed for flexibility, sustainability and high-performance use. Refinancing the project enables Brandywine to preserve conventional debt capacity at this LEED Platinum building (certification pending).
“We were thrilled to partner with Brandywine Realty Trust on this innovative property, which will continue building momentum in this Philadelphia neighborhood while catalyzing life sciences development in the city,” said Mike Doty, senior director of originations at Nuveen Green Capital. “By utilizing C-PACE to recapitalize the project post-completion, the Sponsor will preserve liquidity while supporting sustainable building development.”
“C-PACE provided the right financing at the right time for 3151 Market,” said Tom Wirth, chief financial officer, Brandywine Realty Trust. “Working with the Philadelphia Energy Authority affirmed our continued investment in West Philadelphia at Schuylkill Yards, and we’re pleased with how this partnership with Nuveen can help our future tenants make the most of this LEED Platinum-certified building.”
C-PACE-financed sustainability measures include upgrades to the building envelope, lighting and HVAC systems, and water conservation measures.
“This record-setting, $87 million deal is noteworthy not only for its size. As the first C-PACE financing for a real estate investment trust, this project affirms that Philadelphia’s C-PACE program is resonating with institutional owners as well as private investors,” said Lisa Shulock, PEA Director of Commercial Programs. “Retroactive financing for 3151 Market reflects growing confidence in C-PACE as a flexible capital solution and signals its expanding role in today’s commercial real estate market.”
Completed and ready for occupancy, 3151 features state-of-the-art lab and office space, premier amenities and a prime location at the center of the region’s flourishing life science and tech ecosystem.
