Nuveen Green Capital Provides $173M C-PACE Loan for Miami Condos
Key Takeaways
- •Nuveen Green Capital closed a $173 million C-PACE loan for Shoma Bay condominiums.
- •The project is located in North Bay Village between Miami and Miami Beach.
- •C-PACE financing enables energy improvements through property tax assessments with long-term repayment.
Nuveen Green Capital has completed a $173 million C-PACE financing for a condominium project in the Miami metropolitan area, marking a significant deployment of sustainable construction capital in South Florida's residential market.
The loan supports the Shoma Bay development located in North Bay Village, a small municipality situated between Miami and Miami Beach. Commercial Property Assessed Clean Energy financing, known as C-PACE, enables property owners to fund energy efficiency and renewable energy improvements through long-term assessments on their property tax bills.
Ryan Doyle, a key figure at Nuveen Green Capital, participated in structuring the transaction. The financing mechanism has gained traction in Florida as developers seek alternative capital sources for projects incorporating sustainable building features and energy-efficient systems.
The Shoma Group is developing the condominium project, which will benefit from the specialized financing structure. C-PACE loans typically offer advantages including longer repayment terms than conventional construction financing and non-recourse structures that reduce developer risk.
Florida has emerged as one of the most active C-PACE markets in the United States, with municipalities across the state enabling the program. The financing tool has proven particularly attractive for large-scale residential developments where upfront costs for high-performance building systems can be substantial.
Nuveen Green Capital, a division of Nuveen Real Estate which manages over $150 billion in assets globally, specializes in providing capital for energy-efficient and sustainable real estate projects. The firm has become a leading C-PACE lender nationally, deploying billions in financing across commercial and residential developments.
North Bay Village's location offers developers access to both Miami and Miami Beach markets while maintaining a distinct municipal identity. The area has seen increased development activity as land becomes scarcer in core Miami neighborhoods and developers seek waterfront opportunities.
The transaction reflects broader trends in South Florida real estate, where sustainability features are increasingly standard in new construction rather than premium additions. Rising energy costs and insurance premiums have made energy-efficient building systems more economically compelling for developers and eventual unit buyers.
C-PACE financing differs from traditional loans by transferring with the property upon sale and being repaid through property tax bills rather than requiring separate debt service payments. This structure can improve project cash flows during lease-up or sales periods.
The $173 million commitment represents one of the larger C-PACE transactions in Florida's residential sector, demonstrating institutional capital providers' growing comfort with the financing mechanism for substantial condominium developments in high-value coastal markets.
