DARIEN, Conn., Aug. 26, 2024 /PRNewswire/ — Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions, announced today that it has closed on the financing of $190 million in C-PACE capital for the Virgin Hotels Las Vegas. The project marks the first C-PACE financed deal in Clark County, as well as the largest in Nevada, and second largest C-PACE financed deal in the country to date.
Virgin Hotels Las Vegas, a Curio Collection by Hilton property, is a resort and casino in Paradise, Nevada, just one mile east of the Las Vegas Strip and five minutes from the airport. The 29-acre property boasts 1,503 rooms and suites, over 130,000 square feet of indoor and outdoor meeting and convention spaces, a day spa, outdoor pools, 24-hour gaming, 12 restaurants and bars, plus music venue The Theater.
C-PACE, which stands for Commercial Property Assessed Clean Energy, provides flexible financing solutions for new, ongoing, or recently completed commercial real estate projects. Available in 40 states and Washington D.C., C-PACE has grown in popularity in the commercial real estate market as an attractive financing mechanism, particularly in a capital constrained market.
C-PACE financing was used to recapitalize recently completed improvements to the hotel, including HVAC upgrades, LED lighting upgrades, window replacements, water-saving plumbing upgrades, building control system, pool and spa improvements and desert landscaping. The borrower was motivated to use C-PACE to refinance existing senior and mezzanine loans, in order to de-lever the property.
Cory Jubran, Senior Director, Originations, Nuveen Green Capital said, “We could not be prouder to have partnered with HRHH PropCo, LLC to recapitalize the impressive Virgin Hotel Las Vegas – the largest C-PACE transaction in Nevada, and the second largest-ever C-PACE financed deal in the country. As the C-PACE industry continues to scale exponentially, both in how often it is being utilized, as well as in deal size, this underscores how impactful and cost-efficient it can be to finance projects pre-, mid-, or post-construction.”
“This was an important part of our go-forward strategy, said Cliff Atkinson, President of Virgin Hotels Las Vegas. “C-PACE decreased our cost of capital, which will provide tremendous value to all stakeholders, and the Nuveen Green Capital team was a pleasure to work with.”
This notable deal is part of a larger trend in C-PACE financing that is impacting the West Coast, as well as the commercial real estate industry overall as an increasing number of owners and developers are turning to it as a cost efficient and flexible financing tool. As C-PACE continues its growth trajectory as an alternate form of debt in a capital constrained market, through the leadership of Cory Jubran, Senior Director, Originations and Aidan McLaughlin, Director, Originations, NGC has closed a cumulative $440 million in C-PACE financing for projects across the west coast over the past 12 months.
