Galvanize Climate Solutions’ Real Estate Strategy Acquires Second Asset

Galvanize’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 (“GRE”), the sustainable real estate strategy of global investment firm Galvanize Climate Solutions (“Galvanize”), today announced its acquisition of a 245,000 sq. ft. industrial asset located at One Gateway Boulevard along the I-95/I-295 corridor in Southern New Jersey. Centrally positioned near the Port of Philadelphia and halfway between Washington, D.C. and New York City, the building is the second addition to GRE’s growing asset portfolio.

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One Gateway Boulevard (Photo: Business Wire)

Galvanize’s sustainable 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 One Gateway Boulevard meets its criteria for significant decarbonization potential as it seeks to reduce the operational emissions of this property and achieve 100% GHG emissions reduction over a baseline; GRE expects to add rooftop solar and make other energy-efficient improvements to increase the asset’s net operating income (NOI).

“We acquired One Gateway for its strong real estate fundamentals and profitable decarbonization potential,” noted Joseph Sumberg, Managing Partner & Head of Galvanize Real Estate. “GRE has been experiencing great momentum since closing on its first property in April. We’re thrilled to enter New Jersey and look forward to deploying sustainability technologies to profitably decarbonize the property.”

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 collaborate with a team of in-house scientists, climate technologists, and policy experts who help to evaluate each property’s decarbonization potential. As the property is currently vacant, GRE plans to work with the future tenant to deploy solutions that both reduce the building’s operating costs and carbon footprint.

“One Gateway is a particularly exciting acquisition: the property is in need of a roof replacement but has an aging solar array. We believe this building would have been transitioned away from renewable energy sources and we are excited to give it new life,” 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 42-173% over the property’s baseline, achieved through a series of initiatives with strategic solar and decarbonization partners. This could amount to approximately 20,000 metric tons of CO2e avoided over 30 years or the equivalent of nearly 2,700 homes' energy use for one year.

“One Gateway is a great representation of our acquisition strategy. It is a well-located vacant asset, which we believe we are acquiring below replacement cost,” said Nadine Anderson, Vice President, Acquisitions, Galvanize Real Estate. “One Gateway embodies both our value-add and decarbonization strategies through the lease-up opportunity at a low emissions asset.”

About Galvanize Climate Solutions

Galvanize Climate Solutions (“Galvanize”) is an investment firm focused exclusively 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 position Galvanize to capitalize on the economic, financial, and regulatory tailwinds driving decarbonization. Founded in 2021 by acclaimed investors Tom Steyer and Katie Hall, Galvanize has offices in San Francisco, New York, and London.

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