Nuveen Green Capital and Brandywine Realty Trust recently closed an $87.3 million C-PACE financing for 3151 Market Street in Philadelphia, marking the largest such transaction in Pennsylvania’s history. More notably, the deal represents the first time a publicly traded REIT has utilized C-PACE financing at this scale.

C-PACE allows owners to finance energy efficiency and sustainability improvements through long-term, fixed-rate capital that is senior to equity but does not disturb existing mortgage debt. Unlike traditional refinancing, this structure enables targeted capital deployment directly into the physical asset without resetting the broader capital stack.

Institutional participation in C-PACE reflects growing recognition that building performance is no longer a secondary consideration. Energy efficiency, operating cost reduction, and asset longevity are increasingly underwritten as structural drivers of value rather than discretionary upgrades.

This transaction signals that alternative capital tools are becoming normalized within institutional underwriting frameworks, particularly when they support long-term asset durability.

➤ TAKEAWAY

C-PACE is transitioning from a specialty product into a core capital tool for institutional owners focused on asset resilience.