Galvanize Real Estate, the real estate arm of Galvanize Climate Solutions, on Thursday said it acquired a 245,000-square-foot industrial asset located at One Gateway Blvd. along the Interstate 95/Interstate 295 corridor in Pedrickstown. 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.
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 Blvd. 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.
“We acquired One Gateway for its strong real estate fundamentals and profitable decarbonization potential,” Joseph Sumberg, managing partner & head of Galvanize Real Estate, said. “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.
“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,” Nicolette Jaze, head of ESG & sustainability, Galvanize Real Estate, said.
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.
