By Joshua Burd
Valley National Bank has announced a new partnership to fund up to $100 million in permanent loans to help builders meet various environmental, social and governance standards.
The lender on Thursday said it was teaming with the Community Preservation Corp. for the initiative, which recently closed its first loan linked to so-called ESG goals. On Aug. 9, Valley provided $1.9 million in financing to 1 Solstice Lane LLC in Geneva, New York, for a 12-unit apartment complex that was completed in January, featuring multiple electric vehicle charging stations, highly efficient heat pump systems for heating, cooling and hot water and a rooftop solar array sized to cover all electricity used by the property.
The loan was made through Community Preservation Corp.’s Sustainable Mortgage Program.
“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,” said Christopher J. Coiley, Valley Bank’s head of commercial real estate lending. “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.”
The platform comes as part of Valley’s ongoing moves geared toward sustainability, the bank said, citing the creation of its own ESG Council in early 2020 to convene leaders across the organization to help guide such efforts. Since that time, Valley said it has made significant strides in its ESG-related initiatives.
Community Preservation Corp., for its part, is a financing and advisory firm that has funded more than 11,000 sustainable, high-performance multifamily units since launching its sustainability platform.
“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,” said Sadie McKeown, CPC’s president. “As an institution that shares our commitment to ESG principals, Valley was a natural fit for this partnership. 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.”
The building at 1 Solstice Lane is net zero in terms of energy consumption versus energy generated by the project, according to a news release. As Valley noted, the increased comfort and reduced utility costs associated with its green features have helped drive the successful lease-up of the facility.
“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, the developer of 1 Solstice Lane.
