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alvanize Real Estate has acquired a 608,000-square-foot industrial property at 150 Milford Road in East Windsor Township, New Jersey. The facility is leased to National Tree Co., a specialist in artificial Christmas trees and holiday decorations.

    The seller was AXA Real Estate, which bought the property in 2021 for approximately $114.2 million from Dermody Properties. Galvanize plans to make sustainable modifications to optimize energy efficiency, generate renewable power, and increase the asset's value.

    Specifically, the company will utilize the building's rooftop space to provide onsite renewable power and participate in a local community solar program. Additionally, they will electrify the property by converting fossil fuel-fired systems to air-sourced heat pumps for heating and cooling. These upgrades aim to reduce National Tree Co.'s scope 3 emissions and meet sustainability goals.

    This acquisition is part of Galvanize's strategy to find properties suitable for value enhancement through decarbonization. The company has made similar investments in Maryland and New Jersey, with a focus on traditional value-add investing complemented by decarbonization and resiliency improvements.

    According to Nadine Anderson, vice president of acquisitions at GRE, "New Jersey is an attractive market for our approach." Galvanize Climate Solutions, the parent company of GRE, focuses on returns from the transition to sustainable energy.

    Studies have shown that buildings with higher energy performance can save up to $1.64 per square foot in total annual expenses compared to legacy buildings. The General Services Administration has found that high-performance buildings operate more efficiently and better than industry benchmarks, making them a cost-effective option for investors.