Record-Breaking: TMG Partners Secures $172M C-PACE Financing in Oakland, Largest Ever in US Office

TMG Partners has successfully secured a remarkable $172 million in C-PACE financing for 300 Lakeside Drive, a sprawling 910,000-square-foot office building situated in Oakland, California, that was built in 1961. This transaction, achieved through collaboration with GreenRock Capital and KeyBanc Capital Markets, is the largest C-PACE loan ever recorded for a U.S. office property.

Transformative Financing for Oakland's Prominent Office Tower

300 Lakeside Drive, an acquisition by TMG Partners from Rockpoint Group and The Swig Co. in 2020, is already known for its significant impact in the area. It is part of a larger $449.8 million portfolio transaction that includes the nearby Kaiser Center Mall, an office and retail asset spanning 128,700 square feet.

Funding Property Upgrades and Enhancements

The $172 million in C-PACE financing is poised to fuel a series of transformative upgrades at 300 Lakeside Drive. This includes a comprehensive HVAC system overhaul, improvements to enhance energy efficiency through envelope sealing, initiatives for water conservation, and a full seismic retrofit. Such enhancements are vital to the evolution of this 29-story office tower, which is further characterized by 46,541-square-foot floorplates, 17,000 square feet of retail space, and a sprawling 3.5-acre rooftop garden.

C-PACE Takes Center Stage

In the face of evolving economic dynamics, such as rising interest rates and a more constrained availability of traditional debt options, C-PACE financing shows there is opportunity. Chris Robbins, Managing Principal at GreenRock Capital, highlighted C-PACE financing as a mainstream solution within commercial real estate markets.