The Paramount, a premiere concert venue in the City of Baltimore, is the recipient of the largest C-PACE financed deal to close under the Maryland C-PACE statewide program, MDPACE. MDPACE is administered by Abacus Property Solutions and sponsored by the Maryland Clean Energy Center. The $26 million project includes energy efficiency upgrades to the 82,000 square foot entertainment venue that is currently under construction. This project underscores the C-PACE program’s commitment to environmental sustainability and economic efficiency. Nuveen Green Capital, a registered capital provider in the Maryland PACE program, provided the C-PACE financing for the project. C-PACE financing was utilized mid-construction to bridge the project to completion by filling a gap in the capital stack.
The C-PACE funded measures are projected to save the Paramount an estimated 24,523,781 KWh of energy, 6,914 gallons of water, and 13,974 metric tons of CO2. This largest C-PACE funded project in the state is a huge victory for the MDPACE program.
“We are pleased the Paramount project is taking advantage of this funding mechanism to include energy efficiency upgrades during construction,” said Abby Johnson, President of Abacus Property Solutions. “And we are excited that Nuveen Green Capital, who has been a key supporter of C-PACE, has been a driver in the rejuvenation of this building in the City of Baltimore.
C-PACE provides commercial property owners and developers access to attractive financing for sustainable commercial real estate projects. C-PACE is private capital which is repaid as a benefit assessment on the property. C-PACE assessments have closed alongside hundreds of banks, debt funds, life insurance companies and other lenders throughout the country to complete development capital stacks.
Nuveen Green Capital, a leader in sustainable commercial financing solutions and a registered capital provider for the Maryland C-PACE program, provided the C-PACE financing for the project. C-PACE capital was strategically utilized mid-construction to bridge the project to completion by filling a gap in the capital stack.
“Closing the largest C-PACE deal in Maryland to date is a testament to the flexibility and scale of the financing mechanism,” said Ryan Doyle, Senior Director of Originations at Nuveen Green Capital. “By strategically deploying C-PACE mid-construction, we were able to fill a gap in the capital stack. This milestone underscores the vital role C-PACE can play in keeping complex development projects moving forward – especially in today’s challenging capital environment.”
Building improvements financed using C-PACE can be completed with minimal up-front, out-of-pocket costs to property owners and can generate positive cash flow upon completion. The results may include reduced energy or other operating costs, improved business profitability, increased property value and improved resiliency to the real estate.
According to Katherine Magruder, Executive Director of the Maryland Clean Energy Center (MCEC), “The Paramount Theater project is a great example of how commercial property assessed clean energy (CPACE) financing can be used to finance new construction. The energy saving measures implemented in the building help with cost control and reduces environmental impact of the project over time.” , “and hundreds of projects across the state have used this financing advantageously to pay for improvements on buildings and facilities.”
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