Galvanize Real Estate (“GRE”), the sustainable real estate strategy of global investment firm Galvanize Climate Solutions (“Galvanize”), has announced the acquisition of a 245,000 sq. ft. industrial asset at One Gateway Boulevard along the I-95/I-295 corridor in Southern New Jersey. Ideally situated near the Port of Philadelphia and midway between Washington, D.C., and New York City, this building marks the second addition to GRE’s expanding asset portfolio.
Galvanize’s sustainable real estate strategy focuses on investing in and decarbonizing industrial, residential, student housing, and self-storage properties while enhancing cash flow and asset value. GRE believes One Gateway Boulevard has significant decarbonization potential and aims to reduce the property’s operational emissions to achieve a 100% GHG emissions reduction from a baseline. GRE plans to add rooftop solar panels and implement other energy-efficient improvements to boost the asset’s net operating income (NOI).
“We acquired One Gateway for its strong real estate fundamentals and profitable decarbonization potential,” stated Joseph Sumberg, Managing Partner & Head of Galvanize Real Estate. “GRE has gained significant momentum since our first property acquisition in April. We’re excited to enter the New Jersey market and look forward to deploying sustainability technologies to profitably decarbonize the property.”
Currently, there are only eight industrial and multifamily buildings verified as net-zero in the US. GRE sees 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 work with a team of in-house scientists, climate technologists, and policy experts to assess each property’s decarbonization potential. Since the property is currently vacant, GRE plans to collaborate with the future tenant to implement solutions that reduce both the building’s operating costs and carbon footprint.
“One Gateway is a particularly exciting acquisition: the property requires a roof replacement and has an aging solar array. We believe this building might have moved away from renewable energy sources, and we are excited to revitalize it,” said Nicolette Jaze, Head of ESG & Sustainability, Galvanize Real Estate.
GRE’s business plan includes value-add improvements to the asset and aims to reduce on-site carbon emissions by up to 42-173% from the property’s baseline. This would be achieved through a series of initiatives with strategic solar and decarbonization partners, potentially avoiding approximately 20,000 metric tons of CO2e over 30 years, equivalent to nearly 2,700 homes’ energy use for one year.
“One Gateway exemplifies our acquisition strategy. It is a well-located vacant asset that we believe we are acquiring below replacement cost,” said Nadine Anderson, Vice President of Acquisitions, Galvanize Real Estate. “One Gateway embodies both our value-add and decarbonization strategies through the lease-up opportunity at a low-emissions asset.”
