Galvanize Climate Solutions’ Real Estate Strategy Acquires Third Asset

The firm’s pioneering real estate strategy leverages proprietary technology with the aim of optimizing energy efficiency savings, generating renewable power, and increasing asset value

Galvanize Real Estate has acquired 150 Milford Road, a 608,000 sq. ft. industrial asset in Central New Jersey (Photo: Galvanize Real Estate)

Press Release – November 22, 2024 – NEW YORK – Galvanize Real Estate (“GRE”), the sustainable real estate strategy of investment firm Galvanize Climate Solutions (“Galvanize”), today announced its acquisition of a 608,000 sq. ft. industrial asset located at 150 Milford Road (“150 Milford”) along the I-95 corridor in Central New Jersey. Well-located in proximity to strategic logistics infrastructure including interstate highway systems, deep-water cargo ports, intermodal terminals, and air freight capabilities, 150 Milford provides access to critical supply chains and distribution solutions. The building is the third acquisition in GRE’s growing real estate portfolio.

Galvanize’s real estate strategy is focused on investing in and decarbonizing industrial, residential, student housing, and self-storage properties while improving cash flow and increasing asset value. GRE believes 150 Milford meets its criteria for significant decarbonization potential as it seeks to reduce the operational emissions of this property and achieve more than 100% greenhouse gas emission reductions over its baseline.

“We believe that 150 Milford serves as a perfect complement to our existing portfolio along the I-95 corridor,” notes Joseph Sumberg, Managing Partner & Head of Galvanize Real Estate. “We’re delighted to grow our New Jersey presence and build a pipeline of resilient energy efficient assets in markets with strong real estate fundamentals.”

According to the US General Services Administration, on average, buildings with higher energy performance are expected to save $1.64 per square foot in total annual expenses compared to legacy stock buildings. GRE views this as a significant opportunity to acquire inefficient assets and invest in their decarbonization and onsite renewable energy generation as part of a traditional value-add strategy.

GRE investment professionals collaborate with a team of in-house scientists, climate technologists, and policy experts who help to evaluate and execute each property’s decarbonization potential. 150 Milford’s current tenant has stated sustainability goals and expressed an interest in deploying solutions that reduce the building’s operating costs and carbon footprint. GRE is excited to offer its tenants solutions to help address Scope 3 emissions, meaning those which companies are indirectly responsible for through their value chains, and therefore challenging for tenants to mitigate.

“150 Milford leverages more than 600,000 square feet of rooftop space to provide the in-place tenant with onsite renewable power. It also takes advantage of a rich community solar program to distribute renewable energy to the local utility. In addition, we intend to electrify the property where possible with the conversion of fossil fuel fired systems to air sourced heat pumps for heating and cooling,” said Nicolette Jaze, Head of ESG & Sustainability, Galvanize Real Estate.

GRE’s business plan includes value-add improvements to the asset and a reduction of on-site carbon emissions by up to 266-324% over the property’s baseline, achieved through a series of initiatives with strategic solar and decarbonization partners. This could amount to approximately 65,000 metric tons of CO2e (carbon dioxide equivalent) avoided over 30 years or nearly 8,502 homes’ energy use for one year.

“This acquisition aligns well with our strategic vision of investing in high-potential industrial assets in prime markets,” said Nadine Anderson, Vice President, Acquisitions, Galvanize Real Estate. “Central New Jersey’s attractive solar programs, robust logistics network, and growing demand for industrial space make this property an ideal addition to our portfolio.”

About Galvanize Climate Solutions

Galvanize Climate Solutions (“Galvanize”) is an investment firm focused on generating long-term value from the energy transition. Founded in 2021 by Katie Hall and Tom Steyer, and led by co-executive chairs Hall, Steyer, and Secretary John Kerry – Galvanize invests across asset classes including venture capital and growth equity, public equities, and real estate, to accelerate commercially competitive solutions, products, and services. Built by investors and operators with decades of experience scaling multibillion dollar strategies, Galvanize is structured to identify and execute on investment opportunities across all sectors of the economy faster than others. Its model pairs best-in-class institutional investment talent with domain expertise across technology, science, market development, policy, geopolitics, and other factors shaping climate landscape.