Greenworks Lending from Nuveen has provided $28 million in C-PACE financing for the renovation of 730 Third Avenue in Midtown Manhattan. The note represents one of the first loans to be closed under the City’s recently launched NYC Accelerator PACE Financing program.
The loan backs a $120 million renovation plan revealed earlier this year. Greenworks is one of the 10 pre-qualified lenders listed for New York City’s C-PACE program, along with Petros PACE Finance, which provided the first green financing of its kind for 111 Wall St. back in June.
Purchased in 1973 by Nuveen Real Estate’s parent company TIAA, the 27-story Plaza District tower houses the corporate headquarters of both Nuveen and TIAA. The 665,000-square-foot property is just a five-minute walk from Grand Central Terminal and incorporates nearly 20,000 square feet of retail.
A sustainable overhaul
The physical absence of employees in Manhattan’s skyscrapers has allowed landlords to bring their assets up to date, as redevelopments gained popularity during the pandemic. Nuveen is aiming to making its $133 billion portfolio operationally net zero carbon by 2040, Brian Wallick, director at Nuveen’s New York Office Investments, said in a prepared statement.
With Taconic Partners as development advisor, the Gensler-designed renovation of 730 Third Avenue includes a 7,000-square-foot landscaped terrace on the 22nd floor, as well as two private terraces on the 13th and 19th floors. The property will also gain a new food hall, fitness center, sky lounge and double-height lobby.
Energy-efficient measures financed by C-PACE include the use of View Glass—smart windows that adjust automatically according to the sun—lighting upgrades and new roof insulation. The sustainable features will reduce the building’s carbon emissions and help the property avert roughly $100,000 in fines annually, under the Climate Mobilization Act’s Local Law 97.