Bank Hapoalim, Nuveen Green Capital Lend $100M on Las Vegas Resi Tower 

Southern Land Company has landed $100 million of construction financing to build a multifamily tower in Las Vegas, Commercial Observer can first report.

Bank Hapoalim provided  a $50 million senior loan and Nuveen Green Capital (NGC) originated a $50 million Commercial Property Assessed Clean Energy (C-PACE) loan for the developer’s planned 272-unit Capella project in Downtown Las Vegas. The 22-story development is slated for completion next year in the 61-acre Symphony Park master-planned neighborhood that was built at the site of a former rail yard. 

Michael Doty, senior director, originations, at NGC, said the C-PACE portion of the financing was funded at a 24 percent loan-to-cost ratio, which will provide more flexibility to fund other expenses tied to the property. The C-PACE loan will also finance energy and water efficiency measures associated with the building.

Doty predicted that the project is poised for success given the strong population growth Las Vegas has experienced in recent years. Major employers based nearby include Ultimate Fighting Championship, Draft Kings, J.P. Morgan Chase, Morgan Stanley and accounting firm EY, formerly known as Ernst & Young. 

“A lot of the newer product on the multifamily front that’s been delivered in Las Vegas is garden style and a little bit more remote than real urban neighborhoods,” Doty told CO. “We think that this product, both from a view standpoint and a neighborhood standpoint, sets itself apart from other multifamily that’s being or has recently been developed in Las Vegas.”

Doty added that the track record of Southern Land Company was also a draw for Nuveen after it also lent $40 million of C-PACE financing for the developer’s 329-unit multifamily project in Philadelphia. 

Located at 277 Promenade Place, the Capella project will include 17,000 square feet of ground-floor retail space. Community amenities will feature a spa with two saunas, a pool lounge with cabanas, two fitness centers and coworking space. 

Aaron Schneider, director of capital markets at Southern Land Company, said in a statement that partnering with NGC for the Capella project was a “natural fit” given the financial advantages for property owners who utilize the C-PACE program.

“C-PACE financing provides a cost-effective pathway to achieving our goals of developing exceptional properties while also driving positive impact within the surrounding community,” Schneider said. “We value our relationship with NGC and look forward to continued collaboration on future projects.”

Officials at Bank Hapoalim did not immediately return a request for comment. 

Andrew Coen can be reached at acoen@commercialobserver.com