Tom Steyer’s Galvanize makes third real estate grey-to-green deal

Taking control of high-emitting assets in order to reduce their carbon footprint has long been seen as an important investment strategy, but few such ‘grey-to-green’ plays have come to market. Galvanize Climate Solutions, founded by veteran alternatives investor and one-time presidential candidate Tom Steyer, aims to acquire and decarbonize properties in the industrial and residential sectors. The strategy has inked its third deal, acquiring 150 Milford Road, a 608,000 square foot industrial property in New Jersey, with plans to dramatically reduce on-site emissions. The targeted $500 million Galvanize Real Estate fund will link 30% of its carried interest to meeting impact goals.

Galvanize treats decarbonization as another way to raise asset values. The property’s more than 600,000 square feet of rooftop space can provide tenant with renewable power, according to Galvanize’s Nicolette Jaze. “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.”