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Valley Bank and The Community Preservation Corporation Commit Up to $100 Million to Finance ESG Loans Focused on Sustainability
The relationship will support commercial real estate financing for new construction tied to ESG principles. Partners announce first ESG loan closing for Net
About this update from Valley National Bancorp
[{"type":"text","content":"\nThe relationship will support commercial real estate financing for new construction tied to ESG principles.\n\nPartners announce first ESG loan closing for Net Zero Energy, multifamily project in Geneva, NY.\n\n WAYNE, N.J.--(BUSINESS WIRE)--\nValley National Bank (NASDAQ:VLY) today 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.\n\nOn 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.\n\n“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.”\n\n“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 partnersh...