(Bloomberg) -- The real estate division of Tom Steyer’s Galvanize Climate Solutions LLC has made its third acquisition in just over six months, purchasing a New Jersey property as it builds a portfolio of assets targeted for decarbonization.
Galvanize Real Estate bought a 608,000-square-foot industrial asset in central New Jersey, at 150 Milford Road along the Interstate 95 corridor, for an undisclosed sum, according to a statement on Friday.
The property has “significant decarbonization potential,” and GRE plans to slash the building’s operational emissions by replacing fossil fuel-fired systems with heat pumps powered by on-site solar energy, it said.
Steyer, a billionaire investor known for his green focus, is one of many trying to assess how Donald Trump’s election win will alter the landscape for firms like his. For now, the verdict is that the president-elect’s anti-green rhetoric is unlikely to upend the logic of investment in climate-friendly projects.
“It doesn’t change the overall math and the secular trend,” said Joseph Sumberg, a former Goldman Sachs Group Inc. managing director who now oversees Steyer’s real estate unit. “Tenants generally want lower operating expenses in a quieter, more efficient building that works better,” which is what green upgrades achieve.
Steyer’s real estate division plans to spend $1.85 billion over the next three years, with the money earmarked for energy efficiency and constructions that are better able to withstand extreme weather. That’s as insurers increasingly turn their backs on properties deemed vulnerable to the fallout of climate change.
GRE is currently targeting investments in New York, New Jersey, California, Maryland and Massachusetts. The company said improvements to the 150 Milford Road building will cut on-site emissions by as much as 324% over the baseline.
“This acquisition aligns well with our strategic vision of investing in high-potential industrial assets in prime markets,” said Nadine Anderson, vice president for acquisitions at GRE, in a statement. “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.”
(Adds comment from head of real estate in fifth paragraph.)
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