Investment firm, Nuveen, secures $785 million for its third Commercial Property Assessed Clean Energy (C-PACE) lending fund, broadening the scope of sustainable finance in the real estate sector.

In a significant stride towards sustainable real estate financing, Nuveen Green Capital's C-PACE Lending Fund III has raised $785 million, increasing Nuveen's total C-PACE assets under management to over $6 billion[1][2]. This fund, which supports energy efficiency, water conservation, and climate resiliency projects in commercial real estate, is making a tangible difference in the fight against climate change.

The fund's projects contribute directly to sustainability goals by reducing carbon footprints and resource use[1]. Socially, it provides long-term, stable investment opportunities for institutional investors, particularly insurance companies, aligning financial returns with environmental, social, and governance (ESG) criteria[1][2].

C-PACE (Commercial Property Assessed Clean Energy) is a state-level public-private financing program that allows building owners to access low-cost, long-term capital for improvements tied to energy and water savings, as well as climate resilience measures[1][2]. These financing terms are more favorable than mezzanine debt or equity, helping accelerate retrofit projects that reduce environmental impact.

By providing institutional investors access to investment-grade, fixed-income assets with definable positive environmental impacts, Nuveen Green Capital drives capital towards green infrastructure while meeting insurers’ needs for long-duration, risk-adjusted returns[2]. This approach also helps reshape commercial real estate lending by integrating sustainable objectives into financial performance, advancing broader ESG priorities in the real estate sector[1].

Nuveen Green Capital's efforts have yielded impressive results. Their C-PACE financings have saved 585 megawatt hours of energy, equivalent to over 407,000 acres of forest in carbon emissions[1]. Moreover, these financings have supported the creation of over 2,100 housing units and saved more than 461 million gallons of water[1].

Nuveen, with assets under management totalling $325 billion for more than 125 global insurance clients, is a leader in the field[1]. Notably, NGC is the first to securitize commercial PACE assets and launch a private fund series[1]. As of the end of 2024, NGC has issued more than $3 billion through securitizations and private funds[1].

Interestingly, 93% of Nuveen's insurance clients consider or plan to consider environmental and social impact in their investment decisions[1]. Nuveen Green Capital manages over $3 billion in assets within the C-PACE space, demonstrating a commitment to sustainable real estate financing.

In conclusion, Nuveen C-PACE Lending Fund III is aiding environmental outcomes by enabling sustainable building upgrades, water conservation, and climate resilience, while offering social benefits through stable, impact-driven investment opportunities aligned with growing institutional demand for green finance[1][2][3]. This fund is a testament to Nuveen's leadership in the sustainable real estate financing sector and its commitment to environmental, social, and governance priorities.

References: [1] Nuveen. (2021). Nuveen Green Capital Launches C-PACE Lending Fund III. Retrieved from https://www.nuveen.com/en/newsroom/press-releases/nuveen-green-capital-launches-c-pace-lending-fund-iii

[2] Nuveen. (2020). Nuveen Green Capital Secures $785 Million for C-PACE Lending Fund III. Retrieved from https://www.nuveen.com/en/newsroom/press-releases/nuveen-green-capital-secures-785-million-for-c-pace-lending-fund-iii

[3] Nuveen. (2021). Nuveen Green Capital Financings Save Energy, Water and Reduce Carbon Emissions. Retrieved from https://www.nuveen.com/en/newsroom/press-releases/nuveen-green-capital-financings-save-energy-water-and-reduce-carbon-emissions

The C-PACE Lending Fund III, managed by Nuveen Green Capital, is making a significant impact on the environment by supporting energy efficiency, water conservation, and climate resilience projects in commercial real estate, thereby reducing carbon footprints and resource use.
The social impact of Nuveen Green Capital's initiatives extends to providing long-term, stable investment opportunities for institutional investors, especially insurance companies, thereby aligning financial returns with environmental, social, and governance (ESG) criteria.
In line with the growing demand for green finance, Nuveen Green Capital's efforts in sustainable real estate financing, such as the C-PACE Lending Fund III, are driving capital towards clean energy projects, contributing to the advancement of environmental-science and mitigating climate-change effects.
The increasing focus on sustainable living has led 93% of Nuveen's insurance clients to consider or plan to consider environmental and social impact in their investment decisions, demonstrating a shift towards responsible investing in the home-and-garden, lifestyle, and real-estate sectors.
By investing in sustainable real estate through their C-PACE Lending Fund III, Nuveen Green Capital is not only playing a pivotal role in combating climate-change but also positioning themselves as a trailblazer in sustainable finance and investing, contributing to the overall finance industry transformation and the promotion of a greener planet.

Investment firm, Nuveen, secures $785 million for its third Commercial Property Assessed Clean Energy (C-PACE) lending fund, broadening the scope of sustainable finance in the real estate sector.