JEMB Realty’s Herald Towers has achieved a significant milestone by securing New York City’s first multifamily C-PACE financing. This $8.5 million deal, provided by North Bridge ESG LLC, will fund crucial infrastructure upgrades at the three-tower apartment complex in Midtown Manhattan, paving the way for greener and more efficient building operations.
Key Takeaways
- Herald Towers is the first multifamily property in New York City to utilize C-PACE financing.
- The $8.5 million financing will support the replacement of aging HVAC systems with high-efficiency, electrified equipment.
- The upgrades aim to reduce carbon emissions, lower operating expenses, and enhance long-term building performance.
- This transaction highlights the growing acceptance of C-PACE as a valuable credit solution for real estate assets.
Greening Midtown Manhattan
The financing is earmarked for substantial infrastructure improvements at Herald Towers, located at 50 W. 34th St. JEMB Realty is leveraging C-PACE to replace outdated heating and cooling systems with modern, electrified, and high-efficiency equipment. This strategic move is designed to significantly reduce the building’s carbon footprint and operational costs, aligning with New York City’s ambitious Local Law 97 targets.
A New Era for C-PACE in Multifamily
Laura Rapaport, founder and CEO of North Bridge, emphasized the significance of this transaction. "This transaction signals the growing institutional acceptance of C-PACE as a credit solution that supports long-term asset value," Rapaport stated. She further highlighted the program’s potential, noting, "This financing demonstrates how New York City’s C-PACE program can meaningfully contribute to the city’s electrification and retrofit goals and support significant building improvement projects."
The investment is expected not only to improve the environmental performance of Herald Towers but also to enhance its overall building performance and increase its collateral value in the long run. This pioneering deal sets a precedent for other multifamily properties in the city looking to finance similar green upgrades.