DARIEN, Conn., Dec. 5, 2018 /PRNewswire/ -- Greenworks Lending, a specialty finance company dedicated to commercial property assessed clean energy (C-PACE), today announced the closing of a corporate investment totaling $40 million from CarVal Investors. In addition, CarVal Investors has committed to provide Greenworks Lending with at least $250 million in capital to support the generation and funding of large-balance C-PACE assets.
- $40 million will fuel growth in existing and new markets.
- Partnership supports Greenworks Lending's leading C-PACE origination and underwriting platform with up to $250 million in funding for large assets.
- Greenworks Lending to benefit from CarVal Investors' clean energy, commercial real estate and mezzanine lending expertise.
- Institutional funding from CarVal Investors speaks to the quality of Greenworks' C-PACE origination platform.
Two of CarVal Investors' investment strategies include commercial real estate credit and renewable energy. "Greenworks Lending's ability to generate quality assets through C-PACE-financed projects across the nation represents a strong opportunity in areas we know well," stated Jerry Keefe, principal at CarVal Investors. "They are industry founders and leaders with a proven platform and we are excited about the opportunity for CarVal to support the growth of Greenworks Lending."
Greenworks Lending is a privately held firm founded by Jessica Bailey and Alexandra Cooley who nurtured the then-nascent commercial PACE industry at the Connecticut Green Bank prior to forming Greenworks in 2015 to scale nationally. The company helped to establish Commercial PACE as an asset class via the industry's first rated Commercial PACE securitization ($75 million) in 2017 and has just this week closed a $150 million securitization with TIAA/Nuveen.
"CarVal's investment in Greenworks comes at an exciting moment for Greenworks Lending and the industry as a whole. The success of the platform we've built over the past several years has demonstrated the power of this type of financing for commercial building owners. This partnership with CarVal will allow us to double-down on what's working, expand our footprint and ultimately enable more commercial building owners to access clean energy and improve their buildings," notes Jessica Bailey, co-founder and CEO.
The partnership with CarVal will significantly expand Greenworks' leadership position in the C-PACE market by enabling the firm to offer financing for larger projects. Demonstrating the power of this partnership, upon securing the relationship with CarVal, Greenworks Lending was able to offer a new 600-unit multifamily development in Dayton, Ohio, funding to support a multitude of energy-saving measures being designed into the project.
"In the past 12 months, Greenworks Lending has seen demand for large-balance C-PACE financing increase significantly," stated Bailey. "The CarVal investment will help us take advantage of the interest in this part of the market while continuing to deliver our financing to as many commercial property owners as possible on a national scale."
C-PACE makes it possible for owners of commercial properties to obtain low-cost, long-term financing for energy efficiency, water conservation, renewable energy projects and more. The program starts with state government policies that classify clean energy upgrades and above-code new installations as a public benefit – such as a new sewer, water line or road. These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically 20-plus years). The assessment transfers on sale and can be passed through to tenants where appropriate.
About Greenworks Lending:
Greenworks Lending provides financing to commercial property owners to make their buildings more energy efficient and/or install clean energy systems through a structure called Property Assessed Clean Energy (PACE). Based in Connecticut, Greenworks Lending was founded by developers of the most successful state commercial PACE program in the country. The combined impact of the firm's financing has improved countless properties in more than a dozen states while generating a carbon offset equivalent to protecting a land mass of 26 square miles into forest for 20 years.
About CarVal Investors:
CarVal Investors is a leading global alternative investment fund manager. Since 1987, CarVal has invested $110 billion in 5,300 transactions across 79 countries. CarVal has a long history of successful energy and power investments and is an innovator in structuring partnerships in the renewables industry. For more information, visit www.carvalinvestors.com.
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SOURCE Greenworks Lending