C-PACE Picks up Momentum in California as Owners Seek Durable Solutions
As a measured recovery takes hold across commercial real estate, California is starting to see liquidity return and transactions re-emerge, with C-PACE financing picking up steam.
Sponsors are becoming more constructive in pricing and lenders are showing greater willingness to engage, according to Cory Jubran, senior director of West Coast originations at Nuveen Green Capital.
Jubran said the clearest pickup is in Los Angeles, the Bay Area and San Diego, where well-located assets with credible business plans are drawing renewed interest. Plus, more deals are being underwritten heading into 2026.
"In that environment, C-PACE has continued to gain momentum as a capital source, particularly for recapitalizations and balance sheet optimization, because it can provide long-term, fixed-rate proceeds that complement senior debt and help lower the blended cost of capital," Jubran said.
With the C-PACE market now exceeding $10 billion in cumulative originations, Nuveen has closed more than $1 billion in West Coast C-PACE financings over the past two years.
"We expect adoption to keep growing across California as owners look for durable, execution-certain financing solutions while capital markets remain selective," he said.
That dynamic was apparent in the $33.4 million C-PACE financing deal arranged by JLL, which involved the recapitalization of Depot and Atlas, a creative office campus in Los Angeles' West Adams neighborhood.
"Using C-PACE post-construction, the sponsor was able to pay down existing debt and generate meaningful savings, positioning the property with more flexibility and a stronger long-term capital structure," Jubran explained.
Source: GlobeSt/ALM