The relationship will support commercial real estate financing for new construction tied to ESG principles.
Partners announce first ESG loan closing for Net Zero Energy, multifamily project in Geneva, NY.
Valley National Bank announced a new partnership with The Community Preservation Corporation (CPC) to fund up to $100 million in permanent loans that meet various Environmental, Social and Governance (ESG) standards such as green building practices and reduced emissions. CPC and Valley are working to intentionally address the impacts of climate change through the mortgage process by incenting developers to reach further with a lower rate and higher leverage.
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On August 9, 2022, Valley closed its first ESG-linked loan through its new partnership with CPC. The $1.9 million loan was provided to 1 Solstice Lane LLC in Geneva, New York through the CPC’s Sustainable Mortgage Program. 1 Solstice Lane is a 12-unit apartment complex which was completed this past January. It has received multiple sustainable incentives from NYSERDA and NYSEG programs. The property has multiple EV charging stations, is employing highly efficient heat pump systems for heating, cooling and hot water, and has a rooftop solar array sized to cover all electricity used by the building making this project Net Zero Energy. The increased comfort and reduced utility costs associated with these features has helped drive the successful lease-up of the facility.
“As one of the premier regional banks in the country with more than 90 years of service, we understand the critical role we play in creating a sustainable future throughout the communities we serve,” remarked Christopher J. Coiley, Valley Bank’s Head of the Commercial Real Estate Lending Group. “In CPC, we’ve found the perfect partner to help us fulfill that promise. As we move forward, we’ll continue to work with aspiring and innovative entrepreneurs who are making a positive impact on the local community and helping us create a more sustainable future for everyone.”
“Decarbonizing the built environment through the financing of sustainable and affordable housing is a critical part of CPC’s mission as a nonprofit housing finance company. As an institution that shares our commitment to ESG principals, Valley was a natural fit for this partnership,” said Sadie McKeown, President of The Community Preservation Corporation. “With such a prevalent influence over the economics and condition of our housing stock, the lending industry has a tremendous opportunity to take the lead in advancing practices and policies that improve the financial and physical quality and sustainability of the buildings and communities in which we live and work.”
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“From a developer perspective it is exciting to work with lending and origination partners who understand the financial benefits of sustainable design and construction,” said Solar Village Company partner Ryan Wallace, developer of 1 Solstice Lane.
Valley is committed to building a responsible and sustainable future for the communities it serves. In recent years, the Bank has dedicated significant resources to making ESG a strategic priority. In early 2020, the Bank created an ESG Council to bring together leadership across the entire organization to provide direction to its ESG efforts. Since that time, Valley has made significant strides forward in its ESG-related initiatives. You can learn more about Valley Bank’s cultural, social and environmental initiatives by reading its ESG Report.
A certified carbon neutral company, CPC is committed to financing, advising on best practices, and advocating for solutions and policies to decarbonize the built environment and increase investments in the green economy. Since launching its sustainability platform, the company has financed over 11,000 sustainable, high-performance multifamily units, inclusive of approximately 1,540 units over the past fiscal year. As part of its commitment to advocacy and knowledge sharing, CPC has created a variety of publicly available resources including comprehensive guides to financing high-performance buildings, and regularly convenes webinars and other public forums to support and promote energy efficiency and decarbonization in the multifamily sector.
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