At a glance
- The financing covers 881,427 square feet at 1011 Springdale Road in East Austin, Commercial Observer reported.
- For construction lenders sizing Austin office exposure, the deal is a delivery-stage take-out: fixed-rate C-PACE retires the bank construction loan on a substantially completed asset still in lease-up.
- Cory Jubran, senior director of originations at Nuveen Green Capital, said the long-term, fixed-rate terms gave the borrower room to work through lease-up.
Jay Paul Company refinanced the construction loan on its Springdale Green office campus in Austin with $227.5 million of C-PACE debt from Nuveen Green Capital, the largest C-PACE loan in Texas history.
The financing covers 881,427 square feet at 1011 Springdale Road in East Austin, Commercial Observer reported. The proceeds reimburse energy and water efficiency improvements already installed at the property.
For construction lenders sizing Austin office exposure, the deal is a delivery-stage take-out: fixed-rate C-PACE retires the bank construction loan on a substantially completed asset still in lease-up.
Cory Jubran, senior director of originations at Nuveen Green Capital, said the long-term, fixed-rate terms gave the borrower room to work through lease-up. "This allows the sponsor time to effectuate their business plan," he said. Leasing in Austin has picked up over the last six months, with about 1 million square feet signed by technology and defense sector tenants along with chip manufacturers, he said.
Nuveen financed $68.6 million of C-PACE through the same authority for a Fredericksburg hotel and retail project in October, as Private Real Estate Daily previously reported.
Reported by the Real estate debt desk from Commercial Observer. Published . Corrections