Galvanize Buys Suburban San Jose, Calif., Industrial Portfolio

Global asset manager Galvanize — through its sustainable real estate strategy Galvanize Real Estate (GRE) — recently acquired a four-property industrial portfolio located in Milpitas, Calif. This purchase marks GRE’s entry into California and expands its U.S. portfolio to 3.5 million square feet.

“Located in the East Bay, the Milpitas Portfolio brings together several of the qualities we look for as we continue to grow GRE’s nationwide industrial portfolio — proximity to fast-growing advanced manufacturing hubs, a skilled labor pool, access to major transportation networks and constraints on new supply,” said Nadine Anderson, managing director of acquisitions at GRE. “We are excited to enter this market with the acquisition of four assets, which we intend to make higher-performing, higher-power and more attractive to tenants.”

Incorporating 300,000 square feet of suburban San Jose industrial space(opens in new tab) located in an infill submarket in the Interstate 880 East Bay corridor, the four-property portfolio will be undergoing some enhancements. Specifically, GRE has a business plan that centers on a series of initiatives to improve energy efficiency and reduce emissions. These include the installation of behind-the-meter solar energy generation — expected to generate more than 1,000 MWh of energy per year — as well as battery storage and electric vehicle charging infrastructure.

The solar installation would mark GRE’s first deployment of a behind-the-meter renewable energy program. Overall, the upgrades are estimated to reduce the properties’ annual operational carbon emissions by approximately 279 metric tons. The cumulative effect over 30 years is estimated to avoid the equivalent emissions produced by burning 2,433,795 pounds of coal.

“California’s longstanding climate leadership aligns closely with GRE’s approach to profitable decarbonization,” said Nicolette Jaze, head of sustainability at GRE. “As the state continues to advance a cleaner future for its residents and businesses, we intend to build on that strong foundation through practical improvements that reduce the Milpitas Portfolio’s carbon emissions, while strengthening the assets for the long term.”