Nuveen Green Capital Closes First-Ever C-PACE Transaction in the State of Idaho

$15 million in C-PACE capital to finance Madison Station, new multifamily development in Rexburg, Idaho

Darien, CT (February 18, 2025) – Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions, announced today that it has closed on $15 million in C-PACE financing for Madison Station, a new 360-unit multifamily development. The closing marks the first-ever C-PACE financed transaction in the state of Idaho. NGC partnered with Sundance Bay to provide a nearly $30 million financing package.

Madison Station is a planned, 360-unit multifamily project developed by Sweetwater Companies (“Sweetwater”), located at 577 Trejo Street in Rexburg, Idaho, near Brigham Young University’s Idaho campus. The project will feature one and two-bedroom apartments, various modern amenities, and will provide much-needed housing for young families and students. Sweetwater recently completed phase I of the project, delivering 144 units. With this successful C-PACE closing, construction is now underway on phase II to complete the remaining 216 units.

C-PACE, which stands for Commercial Property Assessed Clean Energy, provides flexible financing solutions for new, ongoing, or recently completed commercial real estate projects. Available in 40 states and Washington D.C., C-PACE has grown in popularity in the commercial real estate market as an attractive financing mechanism.

$15 million in C-PACE financing will be utilized to fund the building envelope, including the roofing, windows, and insulation, as well as the lighting, water conservation measures, boiler, and HVAC for the project. By leveraging C-PACE, the sponsor was able to reduce overall project costs for the second phase of their development.

Ryan Nelson, Founder and Managing Partner of Sweetwater Companies, said, “We are proud to have partnered with the expert team at Nuveen Green Capital to close the first C-PACE transaction in the state of Idaho. By utilizing C-PACE through NGC, we were able to significantly reduce the weighted cost of construction debt for the project. The NGC team was incredibly responsive, collaborative, and instrumental in ensuring a seamless closing process. We look forward to working with them on future transactions!”

Added Danny Kirkpatrick, Vice President of Investments at Sundance Bay, “Sundance really enjoys working with Nuveen Green Capital and C-PACE financing. It allows us to be more competitive and tailor our financing to meet our clients’ needs. We have a philosophy that optimizing the project for the borrower’s profit is in our best interest, as we strive to build relationships with happy borrowers. We have financed Sweetwater’s developments in the past and would love to work with them on future projects as well. This was a good experience. I won’t hesitate to call Nuveen Green Capital in the future.”

Bret Stoddard, Rexburg Building Official and C-PACE administrator, added, “It was a pleasure to work with NGC to see the first C-PACE project in our state come to fruition. We’re confident this will lead to many more commercial owners and developers leveraging the Idaho C-PACE program when building their capital stacks. By utilizing C-PACE’s innovative structure, Sponsors can build more sustainably to realize significant cost efficiencies – benefiting their bottom line as well as their local community.”

Aidan McLaughlin, Director of Originations said, “We are excited to have closed the first C-PACE financed transaction in Idaho. This landmark project is further evidence of C-PACE’s expansion as a cost-effective financing solution across the U.S. It was an honor to work with Sundance Bay and Sweetwater on this project, which will provide a new, modern, energy-efficient residence option to the growing community. This transaction is a great example of using C-PACE in lieu of a typical bank A-note, leveraging C-PACE’s low interest rate and borrower and lender-friendly paper to provide a valuable alternative to bank debt. We look forward to many future closings in the great state of Idaho!”

This notable deal is part of a larger trend in C-PACE financing that is impacting the Western U.S., as well as the commercial real estate industry overall, as an increasing number of owners and developers are leveraging C-PACE as a cost-efficient and flexible financing tool. To date, NGC has surpassed $3 billion in total cumulative originations volume.