The $1.3 trillion investment management arm of TIAA secured the capital for its third C-PACE Lending Fund. C-PACE is a lending program enabled by state governments that allows building owners and developers to secure upfront financing for green construction or energy upgrades, then repay the debt over time through “benefit assessments” on their property’s tax bill (see related, “Calvert Impact rolls out second ‘cut carbon note’ for green building upgrades“).
Nuveen’s lending fund allows institutional investors to invest in C-PACE loans and securitizations. Nuveen did not disclose the LPs in the fund.
Strategic evolution
The new capital brings Nuveen’s C-PACE assets under management to $6 billion. It launched a dedicated C-PACE fund strategy in 2017 and became one of the first institutions to securitize C-PACE loans. Nuveen says the strategy last year alone conserved more than 460 million gallons of water and 585 megawatt-hours of energy and created 2,100 new housing units.
Last year, Nuveen partnered with Canada’s CDPQ on a $600 million financing initiative that combines C-PACE lending with senior bridge and construction loans for green commercial real estate development.
