Galvanize Ramps Up $1.85 Billion Plan for Commercial Real Estate
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The asset management firm co-founded by billionaire investor Tom Steyer has acquired a portfolio of seven industrial properties in the Chicago area.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — The asset management firm co-founded by billionaire investor Tom Steyer has acquired a portfolio of seven industrial properties in the Chicago area. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The deal, which is part of Galvanize’s plan to allocate a total of $1.85 billion to buildings that it can decarbonize and then resell at a profit, adds 730,000 square feet to the investment firm’s portfolio, it said on Thursday. After the purchase, Galvanize will hold real estate covering more than 2.3 million square feet of property. Joseph Sumberg, a former Goldman Sachs Group Inc. banker who runs Galvanize Real Estate, says he and his team are “seeing profitable results” in the strategy. Once flipped, properties have lower energy bills and can be let at higher rents than Galvanize had expected, he said, while declining to provide financial details.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.“We’re able to acquire assets significantly below replacement cost and be able to invest in comprehensive value add plans,” he said.Steyer, who’s long embraced capital allocations that favor low-carbon outcomes, is the co-founder of Galvanize together with Katie Hall. Last year, they were joined by Biden-era climate diplomat John Kerry. Steyer, whose net worth is estimated at $4.7 billion, announced in November that he was taking a leave of absence as co-chair as he runs for governor of California.The firm is pursuing such deals even as many other US investment managers are pulling back, largely in response to the anti-green rhetoric of the Trump administration. Galvanize’s strategy is to replace energy-inefficient roofs, add solar panels, and upgrade older mechanical systems, with a goal of reducing on-site emissions by up to 148% over the portfolio’s 2025 baseline.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.