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Nuveen Green Capital funds $93.4M C-PACE loan for W Hotel conversion
The C-PACE financing is part of a broader capital stack that includes $20 million in senior debt and $104.6 million from equity, bridge loans, and other sources.
Nuveen Green Capital is providing a $93.4 million Commercial Property Assessed Clean Energy, or C-PACE, loan to help fund the redevelopment of the former Erieview Tower in downtown Cleveland into the W Cleveland hotel, according to Commercial Observer.
ErieView Development will use the financing for the adaptive reuse of the 40-story, 1964-built building, and plans to add hotel rooms plus 215 apartments on upper floors. Chris Ellis, senior director of originations at NGC, said the borrower chose to use the maximum allowable C-PACE proceeds under Ohio law to reduce costs and avoid a future refinance.
Ellis also pointed to C-PACE’s fit for conversions, saying older buildings typically fall short of current energy codes and require updates to additional components. He said the deal is the largest C-PACE transaction closed in Ohio to date, and he expects the tool to remain relevant for adaptive reuse projects across the Midwest.
In addition to the C-PACE loan, the project secured $20 million of senior financing from CNB Bank. ErieView Development also obtained $104.6 million from a mix of equity sources, bridge loans tied to tax credits for maintaining historical aspects, a loan from Cuyahoga County, and incentives from the Cleveland-Cuyahoga County Port Authority, with the hotel and apartments targeted for completion in late 2027.