EMPIRE STATE REALTY TRUST ANNOUNCES COMMUNITY SOLAR PROJECT AT 500 MAMARONECK; WILL GENERATE MORE THAN DOUBLE THE BUILDING'S ENERGY NEEDS
Empire State Realty Trust (NYSE: ESRT) announced a community solar project at its office property, 500 Mamaroneck Avenue, Harrison, N.Y. This initiative will require zero capital investment from ESRT and is expected to generate substantial revenue over the next 25 years, with over 40% of credits used for powering the building. The project includes a parking canopy solar array, an 8.2-MWh battery storage system, and 80 EV charging stations. This sustainable move is anticipated to enhance tenant experience and support ESRT's goal of achieving net-zero carbon emissions by 2035.
- Zero capital investment needed for the solar project.
- Estimated stable cash flow generation over 25 years.
- Project expected to produce more than double the building's annual energy usage.
- Enhances tenant experience with EV charging stations and battery storage.
- None.
Project requires zero capital investment, will attract tenants, and benefit shareholders and the environment
NEW YORK, April 7, 2022 /PRNewswire/ -- Empire State Realty Trust (NYSE: ESRT) shared plans today for a community solar project at their 287,351 square foot office property at 500 Mamaroneck Avenue in Harrison, N.Y. The innovative property improvement will serve as a new revenue source, contracted for the next 25 years, with approximately forty percent of the monetary credits generated by the project allocated towards the ongoing cost to power the Westchester office building. The rest of the credits will be available to local residents to share in the solar project's benefits, which include electricity cost savings. To be completed at no cost to ESRT, the project will feature a new parking canopy solar array that will provide year-round elemental shelter for roughly 500 vehicles, an 8.2-MWh battery storage system, and approximately 80 electrical vehicle (EV) charging stations for tenant convenience.
"Companies look to ESRT to help them achieve critical sustainability goals which attract and retain employees who value environmental leadership and action," said Anthony E. Malkin, ESRT chairman, president, and CEO. "This project helps ESRT meet our sustainability objectives, contributes renewable power to our community, will help to attract tenants, and benefit our shareholders."
"Tenants of 500 Mamaroneck have a leg up to achieve their goals simply through their tenancy in the building. The property is now uniquely positioned to reach some of real estate's most aggressive ESG targets, to improve the tenant experience, and to generate an innovative new source of cash flow," said Dana Robbins Schneider, ESRT senior vice president of sustainability, energy, and ESG. "This community solar and storage project at 500 Mamaroneck will cost ESRT zero capital investment, generate stable, positive free cash flow over a 25-year period, and improve 500's competitive position."
ESRT's diverse portfolio benefits from both its Manhattan properties like the Empire State Building and suburban buildings like 500 Mamaroneck Avenue where this project is set to produce more than double the building's annual energy usage. The project is just another way that ESRT innovates to achieve its sustainability goals, which include a target of net-zero carbon emissions for its entire portfolio by 2035.
"For many of our team members, sustainability and healthy buildings are important," said Edward G. O'Connor, partner at PKF O'Connor Davies, LLP, a tenant at 500 Mamaroneck. "We are proud to lease from a landlord who prioritizes energy efficiency and appreciate the fact that local renewable solar power is generated on site at 500 Mamaroneck."
The inclusion of battery storage and electrical vehicle (EV) charging stations ensures reliable power for resilient service and the ability to support the increased demand of EV transportation at no additional cost to tenants. The project is among the first installations in the state to incorporate the innovative mix of community solar, storage, and EV charging.
ESRT will partner with PowerFlex, a provider of onsite renewable energy solutions, to complete this project. PowerFlex is a subsidiary of EDF Renewables North America, a market-leading independent power producer and service provider with 35 years of experience. This project was a part of NYSERDA's NY-Sun Program, which supports the affordability and growth of solar energy implementation across the state.
"We are excited to work with ESRT to provide a comprehensive energy solution that incorporates multiple low-carbon energy technologies. By combining solar, storage, and EV charging solutions, ESRT demonstrates its strong commitment to sustainability with a holistic and forward-looking view. Additionally, ESRT not only increases its own resiliency, but also shares the financial and environmental benefits of renewable energy with its surrounding area through community solar," said Raphael Declercq, executive VP of onsite solutions & strategy, EDF Renewables North America.
More information about 500 Mamaroneck Avenue and ESRT's leadership in ESG can be found online.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and manages a well-positioned property portfolio of office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. Owner of the Empire State Building, the World's Most Famous Building, ESRT also owns and operates its iconic, newly reimagined Observatory Experience. The company is a leader in healthy buildings, energy efficiency, and indoor environmental quality, and has the lowest greenhouse gas emissions per square foot of any publicly traded REIT portfolio in New York City. As of Dec. 31, 2021, ESRT's portfolio is comprised of approximately 9.4 million rentable square feet of office space, 700,000 rentable square feet of retail space and 625 units across two multifamily properties. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, Twitter and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of words such as "assumes," "believes," "estimates," "expects," "intends," "plans," "projects" or the negative of these words or similar words or expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond ESRT's control and could materially affect actual results, performance or achievements. Such factors and risks include, without limitation, the current public health crisis and economic disruption from the COVID-19 pandemic, a failure of conditions or performance regarding any event or transaction described above, regulatory changes, and other risks and uncertainties described from time to time in ESRT's and ESROP's filings with the SEC, including those set forth in each of ESRT's and ESROP's Annual Report on Form 10-K for the year ended December 31, 2021, under the heading "Risk Factors." Except as may be required by law, ESRT and ESROP do not undertake a duty to update any forward-looking statement, whether as a result of new information, future events or otherwise.
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FAQ
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