Berkadia has arranged $37.6 million in Commercial Property Assessed Clean Energy (C-PACE) financing for 1201 Sycamore, an outpatient medical and community services facility in the Congress Heights neighborhood of Southeast Washington, D.C. The property is positioned on the St. Elizabeths East Campus and is described as a trophy outpatient and community-focused asset.
The C-PACE loan was secured on behalf of the sponsorship team composed of Redbrick LMD and Gragg Cardona Souadi, both based in Washington, D.C. Nuveen Green Capital provided the C-PACE financing, which carries a 28-year term under the District of Columbia's PACE framework. DC Green Bank serves as the administrator of the DC PACE program, overseeing implementation of the local initiative that supports energy- and sustainability-focused investment.
The Berkadia DC Metro office led the capital placement effort. Managing Director Brian Gould and Associate Director Natalie Hershey spearheaded the financing assignment, with support from Senior Managing Director Patrick McGlohn, Vice President Patrick Cunningham and Senior Director Hunter Wood. According to Gould, the C-PACE execution supplies the borrower with long-duration, fixed-rate capital that enhances the overall Opportunity Zone capital stack for the project while aligning with its sustainability objectives.
1201 Sycamore was completed in 2023 and comprises a 117,075-square-foot medical and community services facility. The property forms part of the broader redevelopment activity within the St. Elizabeths East Campus in Washington, D.C., serving outpatient healthcare users and community-serving functions. The facility is professionally managed by J Street Companies, which provides property management services for the asset.
The transaction underscores the use of C-PACE financing as a tool to support long-term, fixed-rate capital for healthcare and community facilities, particularly those located in Opportunity Zones and aligned with local clean energy and sustainability goals. By structuring the financing through Nuveen Green Capital under the DC PACE program, the sponsors are able to integrate energy-related improvements and sustainability priorities into their capital structure for 1201 Sycamore, while extending the duration of the financing to match the long-term nature of the asset.
