Greenworks Lending, the Darien-based provider of funding to energy performance-enhancing commercial, multifamily and nonprofit real estate projects, has been acquired by Nuveen for an undisclosed amount.
The deal marks a milestone for the rapidly growing commercial property assessed clean energy (C-PACE) industry, according to Greenworks.
C-PACE provides property owners and developers access to low-cost, long-term, fixed-rate financing for energy efficiency, water conservation, resiliency and renewable energy projects. The sector surpassed $2 billion in transactions in 2020.
Nuveen, based in Chicago, is the investment manager of TIAA. As of Dec. 31, it had $1.2 trillion in assets under management as well as operations in 27 countries.
Founded in 2015 by CEO Jessica Bailey and CIO Ali Cooley, Greenworks Lending has scaled rapidly by providing financing to commercial property owners and developers across 24 states.
The Darien firm said in a statement that the acquisition provides it with the capital stability and springboard to further scale its business, as well as access to additional markets through Nuveen”™s extensive real estate portfolio, municipal expertise and overall strong brand.
The acquisition also provides Nuveen a foothold in this nascent and rapidly growing C-PACE market, addressing an increasing demand from investors for alternative ESG (environmental, social, and corporate governance) income.
“Greenworks was established with the mission to mitigate climate change by providing attractive capital to property owners to promote clean energy,” Bailey said. “C-PACE brings benefits to local businesses, energy security, and the environment.
“In Nuveen,” she continued, “we”™ve found the ideal partner with a shared philosophy who will allow us to expand access to C-PACE financing for more property owners in more states. Nuveen”™s diversified investment expertise in private credit, real estate and municipal finance, global reach, and 50-year heritage of responsible investing will allow us to accelerate and amplify our mission.”
“Greenworks is a pioneer in developing and scaling C-PACE as a cost-efficient marketplace solution for property owners and municipalities to pursue energy efficiency solutions for their commercial buildings,” Nuveen CEO Jose Minaya said.
“The company is a triple-win demonstration of doing well by doing right: Investors get access to attractive yields, borrowers get a net reduction in operating costs through the utility savings, and the environment benefits too.”
