2C — June 17 - July 21, 2022 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
www.marej.com
O wners , D evelopers & M anagers
Zamora brokers transaction Marcus & Millichap executes sale of apt. bldg.
eal estate is directly in the crosshairs of the war on climate change. By Joe Holman, WITHUM Real estate portfolio emissions considerations for fund managers R
may get excluded from more and more investor allocations. In 2019, real estate account- ed for 16% of GHG emissions in the United States, mak- ing it a primary target for institutional investors. Given its oversized contribution to climate change, real estate investors ask managers to reduce their emissions from utilities and HVAC sources (scopes 1 and 2 emissions). These investors also wanted to understand how buildings minimize energy usage if man- agers set emissions targets or favor “green” buildings, such as LEED-certified buildings or those that use renewable energy in their investment selection process. Commercial real estate en- ergy usage is easily compara- ble from building to building. ENERGY STAR ® is a govern- ment-backed Environmental Protection Agency (EPA) ini- tiative widely used in the U.S. for rating a building’s energy performance. The Carbon Risk Real Estate Monitor (CRREM) and GRESB (Global Real
Estate Sustainability Bench- mark) are other benchmarks used to compare a property’s energy efficiency. Having readily accessible benchmark data makes it easy for inves- tors to model portfolio invest- ments and see which funds are best at managing energy usage and are most in line with their emissions targets. In closing, real estate is an easy target for investors com- mitted to reducing portfolio emissions. Fund managers that recognize the importance of emissions can make their funds more attractive to insti- tutional investors by paying attention to emission data. By doing so, fund managers will attract institutional investors and reduce their energy costs, which is a win-win proposition. 1 The Net Zero Asset Man- agers Initiative – An interna- tional group of asset managers committed to supporting the goal of net-zero greenhouse gas emissions. Joe Holman is principal and practice leader, ESG Services at Withum. MAREJ
The reasons why are very straightfor- ward. In- stitutional asset own- ers are go- ing net-zero, real estate is a significant
Joe Holman
404 Stegman
source of Greenhouse Gas (GHG) emissions and net-zero is a fixed, definable target. Real estate investors com- mit to reducing their portfolio emissions in support of the Paris Agreement. For ex- ample, 236 asset managers with $57.5 trillion in assets are signatories of the Net Zero As- set Managers Initiative 1 and have committed to achieving net-zero alignment by 2050 or sooner. Firms like Allianz Real Estate have committed to reducing emissions by 25% by 2025 across their $85 billion global real estate portfolio. Fund managers who do not measure portfolio emissions
JERSEY CITY, NJ — Mar- cus & Millichap announced the sale of 404 Stegman, a 12-unit
also secured an all cash buyer, a private investor. The building is located at 404 Stegman in the West Side of Jersey City. It was built in 1929 and sits along the Light Rail station. Marcus & Millichap, Inc. is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory ser- vices with offices through - out the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices. MAREJ
apartment property lo- cated in Jer- sey City. The as- set sold for $2.275 mil- lion. Jonathan Zamora , an investment
specialist in Marcus & Mil- lichap’s New Jersey office, had the listing to market the property on behalf of the seller, a private investor. He Jonathan Zamora
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