Galvanize Real Estate Acquires First Asset in Pioneering Profitable Decarbonization Strategy
26 Abril 2024 - 5:00AM
Business Wire
Strategy uses proprietary technology with the
aim of optimizing energy efficiency and electrification, generating
power, and increasing asset value
Galvanize Real Estate (“GRE”), the sustainable real estate
strategy of global investment firm Galvanize Climate Solutions
(“Galvanize”), today announced its acquisition of an 84,000 sq. ft.
industrial asset located at 6610 Amberton Drive in the
Baltimore-Washington corridor. Centrally located near I-95, the
Baltimore Washington International Airport, and the Port of
Baltimore, the building marks the first acquisition in GRE’s
portfolio. The investment is the first of an industrial aggregation
strategy within infill Baltimore-Washington corridor.
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6610 Amberton Drive is an 84,000 sq. ft.
industrial asset in the Baltimore-Washington corridor. Centrally
located near I-95, the Baltimore Washington International Airport,
and the Port of Baltimore, the building marks the first acquisition
in Galvanize Real Estate's portfolio. (Photo: Business Wire)
GRE’s sustainable real estate strategy aims to invest in and
decarbonize properties while improving cash flow and increasing
asset value. It believes the Amberton asset presents significant
decarbonization potential through rooftop solar, mechanical
upgrades, and other energy-efficient improvements.
Founded in October 2022, GRE intends to tie a portion of its
long-term incentive allocation to the achievement of predefined,
quantifiable sustainability goals. This differentiated approach
aligns investor interests with sustainable performance and
distinguishes GRE within the industry.
“I’m thrilled that GRE has made its first investment in the
Baltimore-Washington corridor, a target market for us due to its
strong real estate fundamentals and sustainability factors,” noted
Joseph Sumberg, Managing Partner & Head of Galvanize Real
Estate. “The team can’t wait to begin executing on our business
plan, which will include profitably decarbonizing the
property.”
Estimates indicate that 80% of buildings that will be standing
in 2050 have already been built, yet there are currently only eight
industrial and multifamily buildings considered verified net zero
in the US. GRE views this as a significant opportunity to acquire
inefficient assets and invest in their decarbonization as part of a
traditional value-add strategy.
GRE investment professionals have access to a team of in-house
scientists, climate technologists, and policy experts who help to
evaluate each property’s decarbonization potential. In addition, a
team of external partners helped to conduct thorough evaluations at
the Amberton property. Together, they project a minimum 95%
reduction in baseline emissions through solar power,
electrification, and energy reduction initiatives. The firm also
projects that an additional 43% in emissions reduction could be
achieved through tenant partnership.
Both tenants of the fully leased asset have stated
sustainability goals and an interest in pursuing solutions which
reduce their costs and carbon footprints.
“We believe the sustainability potential at this property is an
exciting start for our plans to profitably decarbonize the built
environment,” said Nicolette Jaze, Head of ESG &
Sustainability, Galvanize Real Estate. “Amberton has numerous
opportunities to reduce energy demand, eliminate natural gas, and
leverage an otherwise underutilized rooftop to produce onsite
renewable energy. We look forward to collaborating with our
mission-aligned tenants, which could result in significant savings
and meaningful environmental and social impact.”
“6610 Amberton is a great representation of our acquisition
strategy. It is a supply-constrained infill asset at the heart of
the Baltimore-Washington corridor, which we believe we are
acquiring below replacement cost at an attractive initial yield,”
said Rachel Reardon, Vice President, Acquisitions, Galvanize Real
Estate. “We also target to increase the value through capital
investment and marking to market the leases. As the first of many
in the corridor, we are very excited to demonstrate our value-add
approach, including profitable decarbonization.”
Assuming a fully invested strategy, GRE believes it can execute
a comprehensive sustainability program that could eliminate the
combined emissions equivalent to all the residential real estate in
Green Bay, WI and Boulder, CO for one year.
In the past twelve months, GRE announced several key hires
including Alex Munoz (VP, Asset Management), Allison Fremed (Chief
Operating Officer), Nadine Anderson (VP, Acquisitions), and Rachel
Reardon (VP, Acquisitions). Of its team of eight real estate
professionals, five previously worked together at Goldman
Sachs.
About Galvanize Climate Solutions
Galvanize Climate Solutions (“Galvanize”) is an investment firm
focused on decarbonization across all sectors of the economy. It
invests across asset classes including venture capital and growth
equity, public equities, and real estate, which in aggregate
generate investment insights across the climate value chain. The
firm believes that impact and returns are inextricably linked. Its
team of climate technologists, data scientists, and policy and
market development experts further positions Galvanize to
capitalize on the economic, financial, and regulatory tailwinds
driving decarbonization. Founded in 2021 by proven investors Tom
Steyer and Katie Hall, Galvanize has offices in San Francisco, New
York, and London.
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