Greenworks Lending, a national lender for commercial PACE (C-PACE) projects, announced today it has closed the nation’s first rated securitization of exclusively C-PACE assets. The $75 million issuance was arranged by Guggenheim Securities and TIAA Investments (an affiliate of Nuveen) was the lead investor. Morningstar Credit Ratings, LLC, rated the securitization.
This securitization is a first for the C-PACE market, which has financed nearly $500 million in clean energy infrastructure for over 1,000 commercial buildings across the nation. C-PACE is a local financing option approved by municipalities to promote private investment in renewable energy, energy efficiency, and water conservation for commercial properties. C-PACE works for commercial buildings of all types, including retail, office, agricultural, industrial, multifamily, and nonprofit-owned properties.
Greenworks Lending, led by Co-founders Jessica Bailey and Alexandra Cooley, has financed C-PACE projects in seven states and has grown steadily since launching in 2015.
“This is a milestone moment for the commercial PACE market, as well as for Greenworks Lending,” said Jessica Bailey, Co-founder and CEO of Greenworks Lending. “We built our company with the goal of bringing capital to building owners who want to improve their properties and reduce their energy consumption. This deal is an important step in furthering that mission, while also promoting smart solutions to climate change and spurring local economic development.”
“We are pleased with the opportunity to invest in this PACE securitization,” said Chris Miller, Director, Private Investments at TIAA Investments. “We believe this investment benefits from an exclusive focus on commercial properties, property level cash flows that are senior to mortgage debt and strict underwriting criteria.”
Greenworks and Morningstar anticipate C-PACE securitizations picking up in the coming months and years. “We see a tremendous amount of investor interest in the C-PACE market,” said Vickie Tillman, President of Morningstar Credit Ratings. “Being part of the first transaction in this growing asset class provides us with a great opportunity to provide the market with insightful analysis and thought leadership.”
David Gabrielson, Executive Director of PACENation said, “The PACE market has been anticipating the first commercial PACE securitization and it’s no surprise that Greenworks Lending is behind it. The Greenworks leadership team has played an important longstanding role developing commercial PACE opportunities and we congratulate them on this milestone for our market and applaud their success.”
Get the monthly "PACE Market Updates" newsletter
Join our list of over 5,500 insiders and receive the latest news and updates on the PACE market -- delivered to your email.