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Blog | 4 min read
Financing tool accelerates sustainable growth in Richmond
April 14, 2026
The Commercial Property Assessed Clean Energy (C-PACE) program is a financing tool created by the federal government to aid property owners in funding upfront costs of qualified energy, water, resilience and public benefit projects. This program is currently being introduced to the Greater Richmond area, as it supports the region’s efforts in building environmentally conscious developments while increasing access and affordability to interested buyers.
The fixed-rate loan covers 100% of eligible hard and soft project costs, financing through property tax assessments with the municipal government after purchasing. The flexible structure of the loan allows property owners to take out long-term financing without worrying about selling before it’s paid off.
The first use of the C-PACE program in the region is taking place in the City of Richmond. The project, a former tower occupied by Dominion Energy, marks a significant step towards the future of sustainable developments in Greater Richmond as C-PACE elevates Greater Richmond’s strategic advantage for economic opportunities in real estate. It also encourages reinvestment in long-term communities and advances the city’s forward-thinking approach to cost-effective urbanization.
Virginia PACE Authority
Virginia’s local C-PACE programs are led by the Virginia PACE Authority (VPA), who provides sustainable real estate solutions to commercial businesses, property owners, local governments and contractors statewide with the support of private capital investors. The authority has successfully helped various regions in Virginia finance through C-PACE, including Northern Virginia, the Shenandoah Valley, the Chesapeake area and now Richmond. VPA helps facilitate financing for energy-efficient projects mentioned below that support Greater Richmond’s clean energy goals.
Who is eligible?
- Office, retail, warehouse, data centers, private educational facilities, hotels and motels, multifamily residential (five or more units), and other property types are eligible to participate. In addition, facilities that can receive assessments on their properties such as non-profit, educational and religious institutions are eligible.
What kinds of projects are eligible?
- Energy efficiency: lighting upgrades, HVAC equipment, building controls, building envelope, elevator/escalator upgrades, hot water heaters, energy recovery systems, pool pumps
- Water conservation: water conserving fixtures, gray water systems, cooling tower water recovery, water meters, process water use reduction, irrigation control system, rain harvesting system, efficient hot water boilers
- Renewable energy: solar thermal hot water system, photovoltaic (PV) systems, battery storage with PV, biomass technologies, cogeneration (CHP), fuel cells, wind turbines, E.V. charging stations
The loan term is usually around 25-30 years, or equal to the life of the financed equipment. It typically covers 30-35% for new construction and 50-100% for renovations, helping fund various high-efficiency energy efficiency and water conservation efforts that can increase property value and resiliency.
Dominion Energy tower renovation
The VPA is putting their program into action with the region’s first project right in downtown Richmond. Douglas Development is taking the lead on the redevelopment of an office tower previously occupied by Dominion Energy at 707 E. Main Street with the C-PACE loan to aid in building sustainable infrastructure. The tower will be transformed into an AC Hotel by Marriott with 210 hotel rooms on the lower floors and 288 apartments on the upper floors, as well as a restaurant on the ground floor.
“We are honored to partner with the City of Richmond and Virginia PACE on Richmond’s first CPACE-financed project. This financing makes possible a development that will reinvigorate the downtown area, provide essential housing and hospitality services, and preserve the city’s urban and historic fabric.”
Isaac Rudin
Capital Markets and Investments Manager, Douglas Development
This $158 million revitalization project anticipates creating 573 jobs and providing $3.3 million in total energy savings with 922,340 kWh saved annually and 654 metric tons of CO₂ avoided each year. Financed by Nuveen Green Capital (NGC), the $38.1 million C-PACE loan will support renewable energy enhancements such as exterior LED lighting, low-flow plumbing and energy efficient HVAC systems. The loan funding will provide property owners with access to cost-effective energy upgrades while supporting long-term investment in real estate for the city.
“C-PACE connects sustainability goals with real-world investment. This program supports Mayor Danny Avula’s vision for thriving neighborhoods, sustainable infrastructure and an inclusive economy by helping property owners improve building performance, reduce environmental impact and contribute to long-term community vitality.”
Laura Thomas
Director of the City of Richmond’s Office of Sustainability
About The Author
Nicole Preisner is the Director of Business Development for the Greater Richmond Partnership, where she leads lead generation and business development efforts to attract new companies within the region’s target industries. She holds a degree in Applied Economic Management from Virginia Tech and brings experience from workforce development and regional association management through her time with the Irrigation Association, as well as local economic development as former Business Development Coordinator for the Town of Ashland, Virginia.
