CDPQ, Nuveen Launch $600 Million Real Estate Financing Program

In an all American affair, Caisse de dépôt et placement du Québec (CDPQ), a global investment group based in Canada, and Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions in the US, have announced the launch of $600 million integrated sustainable commercial real estate financing program.

This innovative offering combines Commercial Property Assessed Clean Energy (C‑PACE) financing and senior bridge and construction financing aimed at the U.S. commercial real estate (CRE) market. CDPQ is an institutional investor that manages several public and parapublic pension plans and insurance programs in the Canadian province of Quebec.

The competitive, single-source program will provide a substantial source of flexible, committed, and discretionary capital for new large-scale construction and bridge financings across key asset classes and markets.

The program will offer a turnkey solution while also driving the adoption of sustainability measures in commercial buildings. As a leading provider of C‑PACE across the US, NGC will act as the primary sourcing agent for the integrated financing program.

Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ, said that developing greener buildings and reducing the carbon footprint of the built environment can create significant value.

He said that through this distinctive financing program, we are able to accelerate the implementation of environmentally sound measures for commercial real estate owners and developers.

“We are excited to combine our long-term capital with Nuveen Green Capital’s extensive expertise to offer a sustainable integrated financing solution that fully aligns with CDPQ’s climate strategy and commitment to decarbonise the real economy,” Cormier added.

Jessica Bailey, President and CEO, Nuveen Green Capital, said that CDPQ’s strong commitment to sustainability and track record of innovation aligns very well with their mission.

“This program represents another exciting milestone for the C‑PACE industry and Nuveen Green Capital. We are thrilled to be working with CDPQ to build this one-stop shop for bridge and construction loans to meet the growing need for commercial real estate financing,” Jessica added.

C-PACE

Aligned with the UN Sustainable Development Goals (SDGs), C‑PACE is a US commercial real estate financing initiative to promote a cleaner and safer built environment. In the 40 states where it is offered, commercial property owners can obtain accretive, long-term financing for energy efficiency, renewable energy, water conservation and climate resiliency measures for new development, renovation, or post-construction recapitalisation projects. 

Since its founders launched the first successful C-PACE financing program in 2014, NGC has been at the forefront of establishing the asset class. Today, the U.S. C‑PACE market surpasses over $7 billion in financing activity across over 2,300 projects. In 2023, NGC provided 41% of the total C-PACE originations volume.