The commercial real estate-focused arm of Galvanize, a global asset manager centered on decarbonization, has raised $370M in equity to target buildings where it can juice returns by reducing properties’ carbon footprints.
150 Milford Road, a 608K SF industrial asset acquired by Galvanize in late 2024.
The San Francisco-based firm, founded by billionaire Tom Steyer and storied investment adviser Katie Hall, raised the capital via a mix of pension funds, banks, family offices and foundations, according to a release. It now has a total investment capacity of $1B after chipping in $15M of its own cash and taking out more than $500M in loans.
“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,” Hall, co-chair and CEO at Galvanize, said in a statement.
Galvanize has allocated less than half of its spending capital so far, Bloomberg reported.
The company’s subsidiary, Galvanize Real Estate, will deploy the funding to target undercapitalized commercial buildings in high-growth U.S. markets. It has so far invested in 15 properties totaling 2.4M SF across 11 cities.
“We are honored by the confidence such a diverse set of investors has placed in the Galvanize Real Estate team,” Galvanize Real Estate Head and Managing Partner Joseph Sumberg said in a statement.
The firm selects and acquires buildings where it believes its decarbonization strategies, which include on-site renewable energy generation, energy-efficiency retrofits and electrification, will reduce energy costs and increase net operating incomes.
Galvanize aims to create a net-zero portfolio of existing multifamily, industrial, self-storage and student housing within three years in markets including the Pacific Northwest, Colorado, California, Arizona and Texas, Bloomberg previously reported.
Galvanize Real Estate made its first purchase, an 84K SF industrial property at 6610 Amberton Drive in Elkridge, Maryland, in April 2024, and acquired two New Jersey warehouses a few months later.
In 2025, it acquired a five-property industrial portfolio in Maryland and a seven-property industrial portfolio in Illinois.
Galvanize and its investors see the strategy as a hedge against rising energy costs, which is particularly relevant in light of the widening Middle East conflict kicked off by the U.S. and Israel’s attack on Iran last weekend.
“There’s a lot of uncertainty with respect to what happened this weekend,” Sumberg told Bloomberg. “One thing that is probably certain is that energy prices are not going down as a result of it.”
