Galvanize is doubling down on its decarbonization efforts by raising $370 million to target investments in buildings where it sees potential to deploy its strategy.
The Galvanize Real Estate Fund I, now closed, has fetched commitments from pension funds, banks and their clients, RIAs, family offices, foundations and other institutional investors.
So far, the fund has already invested in 15 buildings through 11 cities in the country, accounting for 2.4 million square feet. Galvanize did not reveal any specific regions that it is targeting, but Real Estate Fund 1 is seeking commercial buildings that are "undercapitalized" in areas experiencing high growth and tight supply.
Joseph Sumberg, head of real estate and managing partner at Galvanize Real Estate, argued to GlobeSt. in January, that decarbonization could lead to strong bottom lines. The goal is to buy properties, work toward decarbonization, improve the valuation of the assets and then sell them to reap the profits.
"GRE's strategy demonstrates a different role for sustainability, one that places it at the center of profit generation and product differentiation," Katie Hall, co-chair and CEO, Galvanize, said in a statement after closing the fund.
"In an environment where the combined impact of rising electricity prices and market volatility is accelerating, there is a large and ongoing opportunity for the team to leverage decarbonization as a driver of value creation."
Galvanize has set a couple of goals: take all of its properties to reach decarbonization of 153% in its initial portfolio and achieve net zero emissions within three years.
When evaluating buildings with decarbonization potential, the company sits down with an in-house team of scientists, policy experts and climate technologists. Galvanize reduces emissions by implementing climate-friendly efforts such as electrification, energy reduction and solar.
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