The recently closed transaction involved a hotel located at 2217 Northwest Miami Court in Miami. This hotel spans a total area of 141,758 square feet. The loan, valued at $30,008,300, was obtained through a recapitalization process. The loan terms are set for a duration of 30 years, with a fixed rate self-amortizing structure. Additionally, the loan includes a capitalized interest period of 3 months.

Summary of transation details

• Property Type: Hotel
• Transaction Amount: $30,008,300
• Address: 2217 Northwest Miami Court, Miami
• Market: Miami
• Square Footage: 141,758

Nuveen Green Capital, represented by Kaitlyn Kennedy and Jonathan Kloos, acted as the lender for this transaction. The hotel's landlords are Bryan Davis and Quadrum Global. Nuveen Green Capital specializes in sustainable financing solutions, including C-PACE (Commercial Property Assessed Clean Energy). They provided a C-PACE funding of just over $30M, which was secured by the recently constructed Arlo Wynwood Hotel in Miami.

The C-PACE proceeds were used to retroactively finance extensive energy efficiency measures that had been implemented in the hotel. These measures included enhancements to the HVAC system, lighting, water conservation, and building envelope. By utilizing C-PACE funding, the hotel was able to increase its operating reserves, and the sponsors could recover their equity.

C-PACE allows commercial property owners and developers to access long-term, low-cost, fixed-rate financing for sustainability initiatives in various projects, including new development, retrofit projects, and recapitalization. For the Arlo Wynwood Hotel project, Nuveen Green Capital collaborated with developer Quadrum Global and the Florida Development Finance Corporation to secure $30M in C-PACE financing, as part of the $83.5M total investment in the new development.

The current economic uncertainties have caused significant disruption in the commercial real estate market. In response, C-PACE financing offers an attractive option for ongoing or recently completed construction projects to recapitalize and bridge the gap to stabilization. The C-PACE proceeds can be utilized to cover construction cost overruns, replenish operating reserves, accommodate total debt payments during stabilization, and even pay down or restructure existing debt.

For more information about C-PACE and Nuveen Green Capital's sustainable financing solutions, visit nuveen.com/greencapital.