Galvanize Real Estate Acquires First Asset in Pioneering Profitable Decarbonization Strategy

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.

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.