Nuveen Green Capital Supplies $38M C-PACE Loan on D.C. Medical Building

Developer Redbrick LMD has secured $37.6 million of Commercial Property Accessed Clean Energy (C-PACE) debt for its newly built outpatient medical and community services building in Washington, D.C., Commercial Observer has learned.

Nuveen Green Capital (NGC) in partnership with DC Green Bank originated the C-PACE loan to facilitate energy savings for the St. Elizabeths East campus in Southeast D.C., completed in 2023. The financing will help the building save more than $45,000 a year on utility costs through more energy-efficient heating, cooling and lighting systems while also refinancing past construction debt, according to NGC.

“Through cost-effective C-PACE financing, the sponsor will realize significant long-term savings while driving economic growth,” Ryan Doyle, senior director of originations at NGC, said in a statement. “This closing is a powerful example of how C-PACE can benefit property owners and developers in the D.C. area and  beyond.” 

Located at 2700 Martin Luther King Jr. Avenue SE in Washington D.C’s Congress Heights neighborhood, the St. Elizabeths East property is anchored by nonprofit health care provider Whitman-Walker Health. The campus, which is named after acclaimed black journalist Max Robinson, helped nearly double Whitman-Walker’s capacity, with the organization now serving more than 15,000 patients a year, according to NGC.

Other tenants at the St. Elizabeths East campus include GW Cancer Prevention and Wellness  Center, Advanced Technical Center, Labcorp, New Hampshire Medical Supply and the Academy of Hope.

“Healthy communities are resilient communities, and this financing is helping to build a better future on the St. Elizabeths East campus,” Brandi Colander, CEO of D.C. Green Bank, said in a statement. “PACE financing is helping to cut operational costs for this highly efficient building, ensuring that Whitman-Walker can put more resources into serving the local community.” 

Tom Skinner, managing partner at Redbrick LMD, said in a statement that the C-PACE refi brings a “stable, long-term capital structure that ensures continuity for Whitman-Walker and the Wards 7 and 8 residents who depend on it.”

Berkadia arranged the financing with a D.C. metro team led by Brian Gould and Natalie Hershey.  

Gould said in a statement the deal provided “long-duration, fixed-rate capital” that helps enhance its overall financing package. The property’s location in a federally designated Opportunity Zone also provides tax incentives. 

Andrew Coen can be reached at acoen@commercialobserver.com.