West Philly Project Gets $11M In C-PACE Renovation Funding: The Philadelphia Deal Sheet
July 09, 2025 | 5:21 p.m. ET Noah Zucker, Philadelphia
CRE sustainability efforts are facing a period of uncertainty after the Trump administration’s tax bill was passed last week, but capital is still flowing into energy-efficient construction projects in Philadelphia.
Malvern Treatment Centers, which serves patients struggling with addiction, plans to open a fourth location in a 138K SF building at 3905 Ford Road in Wynnefield Heights after construction wraps up this December.
Property owner BG Capital utilized the Philadelphia Commercial Property Assessed Clean Energy program to borrow nearly $11M from Nuveen Green Capital to install an energy-efficient HVAC system and LED lighting.
The financing was arranged by the Philadelphia Energy Authority, which manages the Philadelphia C-PACE program.
BG Capital bought the property for $10.8M in June 2022.
The building was constructed in 1965. It started its life as the West Park Hospital, which was consolidated into the Thomas Jefferson University Hospital system in 1987. Jefferson sold the property for almost $2.7M in 2005, according to city property records.
It eventually housed a residential treatment program run by Wordsworth Academy, a private school for youth with special needs. The location shut down in 2016 after a 17-year-old staying there died following a physical altercation with staff, PhillyVoice reported.
SALES
Realterm purchased an 8.1-acre industrial outdoor storage property outside Harrisburg. The site at 6330 Basehore Road in Mechanicsburg, which is fully leased to Ryder Truck Rental, includes a 7K SF maintenance shop.
LEASES
Lehigh Valley Health Network extended its lease at the Cedar Crest Professional Park at 1255 S. Cedar Crest Blvd. in Allentown. Their contract for 100K SF was set to expire at the end of last year but has now been extended through March 2027, Morningstar Credit reported.
Korman Communities is almost ready to start leasing apartments at its AVE Navy Yard complex in South Philadelphia, a collaboration with Ensemble Investments and Mosaic Development Partners. Move-ins will begin this fall. Interested renters can sign up for early information through the AVE Living website.
CONSTRUCTION AND DEVELOPMENT
Seaford City Council in Delaware has approved developer David Perlmutter’s plans for a 194-unit, mixed-use project on the site of a defunct power plant, Morning Star Publications reported.
PEOPLE
FCA Architects Director of Urban Planning and Design Eric Galipo has joined the Design Advocacy Group’s steering committee, the firm announced in a LinkedIn post.
It is encouraging to see C-PACE financing continuing to support energy-efficient renovations, especially for projects that deliver both community and environmental benefits. As sustainability standards become more important, understanding the cost of an EPC in London can also help property owners plan for energy compliance and long-term efficiency improvements.
Renovation funding like this is a great example of how strategic investment can breathe new life into existing properties and property management. Upgrading commercial and mixed-use buildings not only improves energy efficiency and tenant experience but also strengthens long-term real estate value. Projects backed by sustainable financing create benefits for investors, property owners, and the surrounding community alike. Great to see continued investment in revitalizing urban properties.
Interesting to see how C-PACE financing is supporting the renovation of older commercial properties while improving energy efficiency. Investments in upgrades like modern HVAC and LED systems can create long-term value for property owners and tenants. For businesses looking at suitable commercial property options, corporate letting London can also be an important part of finding the right space for their needs.
Great to see projects like this receiving funding for energy-efficient renovations. Sustainable investment not only improves buildings but also creates long-term value for owners and communities. Working with experienced property management services uk can also help ensure these upgraded properties are maintained efficiently and continue delivering strong performance for years to come.