The only other C-PACE loan to close in New York was a $28 million transaction from Nuveen Green Capital (formerly Greenworks Lending) a subsidiary of Nuveen, in September 2021 for energy-efficient improvements at 730 Third Avenue that include installing smart windows that automatically adjust in response to sunlight. New York state’s C-PACE program does not have the same problems as New York City with electrification guidelines. Adams administration officials said it will become authorized once the City Administrative Procedure Act rulemaking process has been completed where there will be an opportunity for public comments.Īustin-based Petros surpassed $1 billion in directly originated and balance-sheet-funded C-PACE transactions since inception in 2016 last November, which includes four deals in New York state, Ghori said. Officials for New York City Mayor Eric Adams’ administration said there has never been a 100 percent electrification standard for new construction projects since the program is not currently authorized. “One of the deals that we’ve been looking at was a LEED Platinum building, but we were disqualified from the PACE program because it had a gas furnace.” “The reality is these buildings are going to be built anyway with fossil fuels, but they won’t allow us at this point to be eligible for PACE financing because if they don’t have 100 percent electrification then they’re disqualified,” Ghori said. Other cities like Seattle also have strict fossil fuel usage standards, but Ghori said only New York has the 100 percent electrification rule. Thirty-eight states and the District of Columbia have passed laws enabling C-PACE in recent years, according to the nonprofit association PACENation.Ī bigger barrier preventing C-PACE from soaring in New York City, according to Ghori, is the program’s guidelines, which require 100 percent electrification with no fossil fuels permitted. The 111 Wall Street deal for Nightingale Properties and Wafra Capital Partners (now called InterVest Capital Partners) involves a renovation of the former 25-story Citibank building that included retrofitting for energy efficiency upgrades.Ĭ-PACE is a form of financing allowing property owners to obtain funding in exchange for certain energy-efficient building improvements. Mansoor Ghori, CEO and co-founder of Petros PACE Finance, said a big stumbling block that has prevented a true takeoff in New York City is the municipal government not permitting new construction or gut rehabilitation projects to be eligible for C-PACE loans, with only renovations currently allowed.
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