Jessica Bailey

Describe the past 12 months in one word, then tell us the key lending opportunities you and your team have uncovered. 

Transformational. We’ve seen C-PACE go from a niche financing mechanism to a mainstay in the CRE industry amid an elevated rate environment. In the last 12 months, NGC has originated nearly $1.5 billion in C-PACE capital, and we’ve closed two of our largest deals ever.

What property sector is most advantageous for C-PACE financing and why?

C-PACE can really offer value for all asset classes. The entire real estate sector has been facing numerous challenges throughout the last year — maturing debt, tighter credit conditions and elevated interest rates — but hospitality was hit particularly hard. In volatile environments, C-PACE emerged as an alternative solution to provide vital capital, especially with its ability to recapitalize CRE projects up to three years post-completion. This has been especially valuable for hotel owners who have recently completed construction projects and are looking to improve cash flow or refinance existing debt with better terms.

Are rate cuts the silver bullet we’ve been waiting for to solve all woes? Discuss.

Rate cuts, while certainly impactful, are not a silver bullet for solving all the challenges in the CRE finance industry. Lower rates can reduce borrower costs, increase investment and improve cash flow, but it doesn’t address all the complexities of the market, such as
supply-and-demand dynamics and evolving tenant preferences. Rate cuts also don’t automatically make borrowing easier — credit standards may stay tight as economic uncertainty persists. Rate cuts are a positive step forward, but not a cure-all.

How does distress continue to play out in 2025, and how can lenders best protect themselves?

C-PACE is uniquely positioned to provide relief in the case of distress, for properties on which qualifying work was completed in recent years to provide cash flow to get them through a difficult period. C-PACE can fully or partially refinance out senior lenders who need to liquidate their positions on projects, as our capital is intended to be patient. C-PACE can also provide working capital to otherwise healthy projects that need a longer runway to reach stabilization. As a smaller part of capital stacks, at NGC we are very interested in maintaining strong relationships with the senior lenders on our properties and we work closely with them to achieve the best outcome for the property. 

Tougher market: Global Financial Crisis or these past four years?

The last four years have been challenging, but the GFC seemed more severe with a slower recovery. These past four years were tough, but as a C-PACE lender, it offered opportunities to dive into the complexities across varying circumstances in the CRE market — supply chain disruptions, construction delays, return-to-office uncertainty. While we are looking forward to some calmer waters, the past few years opened up some interesting opportunities for us.

Tell us about a deal you’re especially proud of this past year.

We are proud that NGC recently closed on the second-largest C-PACE financed transaction to date on 200 Park, a pre-eminent trophy asset in San Jose, Calif. On this landmark deal, the sponsor leveraged C-PACE’s flexible, attractive financing structure to deploy $220 million in C-PACE capital for the Jay Paul-designed, LEED Gold-certified tower. $220 million in C-PACE financing was used to recapitalize the iconic building’s extensive sustainability and resiliency measures.

What will C-PACE lending volume look like in New York City in 2025?

We are encouraged by the recent improvements to the NYC C-PACE guidelines, and cautiously optimistic that this new launch of the guidelines has made a program that will be robust. NGC is actively working on multiple C-PACE deals for New York, and we have plenty of demand from property owners across the city and across all asset types seeking C-PACE as an accretive financing vehicle.

Lightning Round:

AI: Helpful or fad?

Both — but not going anywhere. While elements of it are a fad, and it’s certainly seen buzzword overload, there’s no putting the genie back in the bottle. AI serves as a catalyst for innovation and is transforming many industries through efficiency and automation.

Who will win the presidential election (not who you want to win)? 

My hunch is Kamala. 

How many days are you in the office today?

It really depends. I travel a lot to our different markets and split my time between our NYC and Connecticut offices. 

Pref equity or mezz?

Neither. C-PACE!

Class B office: Tear down and start over, or convert?

Convert. Retrofitting existing buildings is the quickest and most cost-effective way to accelerate decarbonization in the built environment.

Song title that encapsulates your current mindset?

“Long Live” by Taylor Swift. 

Dream dinner date?

Bruce Springsteen.