Historic project marks the largest C-PACE financed deal in Nevada and the second largest in the country
DARIEN, Conn., Aug. 26, 2024 /PRNewswire/ — Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions, announced today that it has closed on the financing of $190 million in C-PACE capital for the Virgin Hotels Las Vegas. The project marks the first C-PACE financed deal in Clark County, as well as the largest in Nevada, and second largest C-PACE financed deal in the country to date.
Virgin Hotels Las Vegas, a Curio Collection by Hilton property, is a resort and casino in Paradise, Nevada, just one mile east of the Las Vegas Strip and five minutes from the airport. The 29-acre property boasts 1,503 rooms and suites, over 130,000 square feet of indoor and outdoor meeting and convention spaces, a day spa, outdoor pools, 24-hour gaming, 12 restaurants and bars, plus music venue The Theater.
C-PACE, which stands for Commercial Property Assessed Clean Energy, provides flexible financing solutions for new, ongoing, or recently completed commercial real estate projects. Available in 40 states and Washington D.C., C-PACE has grown in popularity in the commercial real estate market as an attractive financing mechanism, particularly in a capital constrained market.
C-PACE financing was used to recapitalize recently completed improvements to the hotel, including HVAC upgrades, LED lighting upgrades, window replacements, water-saving plumbing upgrades, building control system, pool and spa improvements and desert landscaping. The borrower was motivated to use C-PACE to refinance existing senior and mezzanine loans, in order to de-lever the property.
Cory Jubran, Senior Director, Originations, Nuveen Green Capital said, “We could not be prouder to have partnered with HRHH PropCo, LLC to recapitalize the impressive Virgin Hotel Las Vegas – the largest C-PACE transaction in Nevada, and the second largest-ever C-PACE financed deal in the country. As the C-PACE industry continues to scale exponentially, both in how often it is being utilized, as well as in deal size, this underscores how impactful and cost-efficient it can be to finance projects pre-, mid-, or post-construction.”
“This was an important part of our go-forward strategy, said Cliff Atkinson, President of Virgin Hotels Las Vegas. “C-PACE decreased our cost of capital, which will provide tremendous value to all stakeholders, and the Nuveen Green Capital team was a pleasure to work with.”
This notable deal is part of a larger trend in C-PACE financing that is impacting the West Coast, as well as the commercial real estate industry overall as an increasing number of owners and developers are turning to it as a cost efficient and flexible financing tool. As C-PACE continues its growth trajectory as an alternate form of debt in a capital constrained market, through the leadership of Cory Jubran, Senior Director, Originations and Aidan McLaughlin, Director, Originations, NGC has closed a cumulative $440 million in C-PACE financing for projects across the west coast over the past 12 months.
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for over $1 trillion in assets under management. Established in 2015 by the C-PACE industry’s founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water, and resiliency performance of their property. For more information, visit www.nuveen.com/greencapital.
About Virgin Hotels Las Vegas owned by JC Hospitality LLC (owner of HRHH Propco, LLC)
Virgin Hotels Las Vegas is an integrated resort that delivers a vibrant and lively environment for travelers and locals alike. The off-Strip resort features 1,503 Chambers and suites across three towers, a 60,000-square-foot casino and sportsbook, and a five-acre desert pool oasis. The property boasts several dynamic spaces for live music and entertainment, including the 4,600-capacity theater operated by AEG Presents, the intimate 24 Oxford showroom, The Shag Room, a unique and sexy cocktail lounge, and the multi-functional Event Lawn. Touting an exceptional portfolio of 12 food and beverage venues, Virgin Hotels Las Vegas is home to famed restaurants like the legendary Nobu, Michael and David Morton’s ONE Steakhouse, Kassi Beach House and Beach Club experience, Pizza Forte by the Ferraro Family and more. Virgin Hotels Las Vegas is part of the Curio Collection by Hilton and has been consecutively awarded the AAA Four Diamond Award since its first year of operation. For more information, visit www.virginhotelslv.com.
Media Contact:
Jamie McCorry
Nuveen Green Capital
959-261-8689 | [email protected]
SOURCE Nuveen Green Capital
