150 Milford Road in East Windsor — Courtesy: Galvanize Real Estate
By Joshua Burd
Galvanize Real Estate has made its second acquisition in New Jersey with plans to significantly reduce carbon emissions at the 608,000-square-foot warehouse in East Windsor.
The firm, a platform of billionaire investor Tom Steyer and an affiliate of Galvanize Climate Solutions, said its efforts at 150 Milford Road will include reducing operational emissions and electrifying the property’s heating and cooling systems. It’s also planning a series of value-add upgrades, seeking to capitalize on the building’s location off New Jersey Turnpike Exit 8 and the ability for tenants to access the region’s ports.
The facility is the third acquisition in GRE’s growing real estate portfolio, which includes a 245,000-square-foot industrial building in Salem County’s Oldmans Township that it acquired earlier this year. Terms were not disclosed.
“We believe that 150 Milford serves as a perfect complement to our existing portfolio along the I-95 corridor,” said Joseph Sumberg, managing partner and head of Galvanize Real Estate. “We’re delighted to grow our New Jersey presence and build a pipeline of resilient energy-efficient assets in markets with strong real estate fundamentals.”
GRE noted that its plans for the building could eliminate some 65,000 metric tons of carbon dioxide equivalent over 30 years, which translates to nearly 8,502 homes’ energy use for one year. It also said 150 Milford’s current tenant has stated sustainability goals and expressed an interest in deploying solutions that reduce the building’s operating costs and carbon footprint.
The real estate firm’s investment professionals will do so in tandem with a team of in-house scientists, climate technologists and policy experts.
“150 Milford leverages more than 600,000 square feet of rooftop space to provide the in-place tenant with onsite renewable power,” said Nicolette Jaze, head of ESG and sustainability, Galvanize Real Estate. “It also takes advantage of a rich community solar program to distribute renewable energy to the local utility. In addition, we intend to electrify the property where possible with the conversion of fossil fuel-fired systems to air sourced heat pumps for heating and cooling.”
The firm cited data from the U.S. General Services Administration showing that, on average, buildings with higher energy performance are expected to save $1.64 per square foot in total annual expenses compared to legacy stock buildings.
“This acquisition aligns well with our strategic vision of investing in high-potential industrial assets in prime markets,” said Nadine Anderson, vice president of acquisitions at Galvanize Real Estate. “Central New Jersey’s attractive solar programs, robust logistics network and growing demand for industrial space make this property an ideal addition to our portfolio.”
Galvanize buys 245,000 sq. ft. South Jersey warehouse, eyeing major decarbonization strategy
