- Nuveen Green Capital provided $227.5M of C-PACE debt to Jay Paul Company, the largest C-PACE loan in Texas history, refinancing a construction loan on the 881,427 SF Springdale Green campus.
- The long-term, fixed-rate financing gives the sponsor room to lease up a campus finished less than two years ago and recapitalizes energy and water efficiency upgrades already installed.
- The deal arrives a decade after Texas’ first TX-PACE financing and as Austin leasing picks up, with about 1M SF signed by tech, defense and chip tenants over six months.
Jay Paul Company has closed $227.5M of C-PACE debt on its Springdale Green office campus in Austin, the largest such loan in Texas history, according to Commercial Observer.
Nuveen Green Capital provided the financing, which refinances a construction loan on the 881,427 SF project.
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Why C-PACE Fit
Nuveen Green Capital’s Cory Jubran, a senior director on its originations team, told Commercial Observer that long-term, fixed-rate debt gives the sponsor flexibility to lease up. The campus was substantially finished within the past two years.
The loan recapitalizes water and energy efficiency upgrades already installed at the property, Jubran said.
The Site
Springdale Green sits on Springdale Road in East Austin. An industrial tank farm occupied the East Austin site between 1948 and 1992.
Jay Paul Company pitched the office project to the city in May 2020.
Austin Leasing Picks Up
Jubran described a tough Austin office market that has improved lately. About 1M SF has been signed over the past six months by technology and defense tenants and chip manufacturers.
The C-PACE loan buys the sponsor time to land the right user for the property, he said.
Zoom Out
C-PACE has been a go-to tool for efficiency-linked capital. We covered how 179D tax break expiration has not yet changed financing or retrofit decisions, according to lenders and advisers.
Why It Matters
Texas’ largest C-PACE loan arrived ten years after its first. Dub Taylor, who leads the Texas PACE Authority, said the deal reflects TX-PACE’s progress.
Jay Paul’s chief investment officer, Nick Zolintakis, called the structure accretive in a statement.
What’s Next
Watch whether other owners of recently finished Texas office buildings use C-PACE to refinance construction debt while leasing catches up.
