HOUSTON, Sept. 18, 2024 (GLOBE NEWSWIRE) — Lone Star PACE, a leader of Texas’ Commercial Property Assessed Clean Energy (C-PACE) program, helped arrange $40 million in C-PACE financing for the revitalization of ViVa Center, a 2.3-million-square-foot technology hub in Houston, supporting the development of data centers aimed at driving the growth of AI.
The 774,000-square-foot facility at 11445 Compaq Center West Drive is part of the recently rebranded ViVa Center, which was originally the headquarters for Compaq Computer and later acquired by Hewlett-Packard Enterprise. This turnkey data center will cater to hyperscale users in the cloud computing and artificial intelligence sectors.
Financing proceeds will be used to install sustainable building components to Phase 1 of the data center development. Improvements include energy-efficient windows, LED lighting, advanced HVAC systems, and high-efficiency plumbing upgrades.
Lee McCormick, president of Lone Star PACE, said: “We are thrilled to have partnered with VivaVerse Solutions on this much-needed project. Demand for data center infrastructure has exploded amid a rise in data consumption and technological innovation, and it’s exciting to see C-PACE play a role in meeting that need.”
C-PACE allows property owners to access low-cost, long-term financing for energy and water conservation systems at commercial buildings. Property owners can use C-PACE to finance new construction, building retrofits or recapitalizations.
Nuveen Green Capital served as the capital provider for the project, which involves retrofitting an existing building. Phase 1 is scheduled for completion this fall.
Sean Ribble, senior director of originations at Nuveen Green Capital, said: “We are proud to expand our partnership with Lone Star PACE by providing $40 million in C-PACE capital to VivaVerse Solutions for the deep retrofit of their data center. In a capital-constrained market, more owners and developers are recognizing the value of C-PACE as a flexible, cost-efficient financing solution for commercial real estate projects of all asset classes. We look forward to supporting many more C-PACE deals across Texas as the platform continues its expansion as a more mainstream financing option.”
At full build-out, the ViVa Center development will offer 250 megawatts of power, a dedicated chilled water plant and a natural gas pipeline for energy generation.
Freddy Vaca, president of VivaVerse Solutions, stated: “At ViVa Center, our commitment to technological innovation and forward-thinking design drives the integration of state-of-the-art building systems. Partnering with Nuveen Green Capital and Lone Star PACE has been instrumental in aligning our advanced sustainability objectives with our investment returns, setting a new benchmark for efficiency and performance in data center development.”
About Lone Star PACE
Lone Star PACE serves as a program administrator for city and county Commercial Property Assessed Clean Energy (C-PACE) programs in Texas. We help local governments, economic development corporations, chambers of commerce and trade associations promote business growth and conservation by facilitating C-PACE projects with property owners, PACE lenders, contractors and other stakeholders. Our goal is to promote sustainability and increased property values while positively impacting cash flow and utility savings for property owners.
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for over $1 trillion in assets under management. Established in 2015 by the C-PACE industry’s founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water, and resiliency performance of their property. For more information, visit www.nuveen.com/greencapital.
About VivaVerse Solutions
VivaVerse Solutions is redefining the former HPE/Compaq Computer campus as a cutting-edge hub for next-generation applications, specializing in AI, blockchain, and High-Performance Compute solutions. Their ambitious plans include state-of-the-art facilities designed to transform the Texas data center landscape, setting new benchmarks for energy efficiency and operational reliability. With the data center market projected to reach $340.2 billion by 2024, VivaVerse Solutions is positioned to offer unparalleled facilities to top-tier AI hyperscalers. For more information, visit www.vivaversesolutions.com.
Media Contact
Olivia Lueckemeyer
Director of Marketing & Media Relations at Lone Star PACE
Olivia@LoneStarPACE.com
A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/205b0de7-1500-44f8-88c9-7b1f160a6f1c
