SkyREM: A Year-in-Review of a Successful 2021
I am extremely proud of what turned out to be a very busy but very successful year for SkyREM in 2021. The company brought the total portfolio under its management to some 10 million square feet, with two million square feet coming from purchases of existing buildings and more space coming from the purchase of several development sites.
In a bit more detail, SkyREM acquired two assets on large plots of land, one in South Carolina and one in Virginia, totaling 536,000 square feet with long-term, single-tenant leases in place and room left over for further expansion. In North Carolina, it acquired a 185,000-square-foot warehouse facility, a 102,000-square-foot industrial building, a 100,000-square-foot Landair Logistics industrial building, and 360 acres of land with 1.6 million feet of industrial space potential. SkyREM purchased a 148,000-square-foot facility in South Carolina, a 58,000-square-foot facility in Tennessee, a 485,000-square-foot manufacturing and warehouse facility in Wisconsin, and a 330,000-square-foot food packaging plant in Iowa. In Pennsylvania, the company purchased an 11,000-square-foot property in Philadelphia that houses a CVS pharmacy, and it purchased two facilities in King of Prussia and two facilities in Langhorne. The two King of Prussia facilities include a 50,000-square-foot building housing a Lockheed Martin branch and an 8,500-square-foot facility housing offices of the United States Postal Service. The two facilities in Langhorne include a 15,000-square-foot building housing a Keller Williams and an 8,700-square-foot facility housing a Davita Dialysis medical office. SkyREM also purchased 80 acres of land in upstate New York that are adjacent to the 254-acre plot already under its ownership.
We also started building three state-of-the-art buildings in North Carolina and Virginia. The two projects in North Carolina are in the final stages of pre-construction and are expected to be completed in the third quarter of 2022. The project in Virginia will see the expansion of our 300,000-square-foot facility by an additional 244,000 square feet. It is scheduled to be completed by the fourth quarter of 2022.
After investing further in our one-million-square-foot Quartermaster project in South Philadelphia, we signed four new tenants. Indego Bike Share, Philadelphia’s public bike-sharing system, leased 28,000 square feet, while Prosperity Home Mortgage leased 2,000 square feet. JC Consulting leased 10,000 square feet, and Premier Physical Therapy leased 8,700 square feet.
In addition, thanks to a variety of upgrades and equipment replacements, many existing tenants expanded or renewed their leases.
We conducted a full evaluation of our portfolio to assess the feasibility of providing solar energy to our existing tenants. We already have five megawatts installed and operational on the roofs of the buildings under our ownership. We are in the pre-construction stage for more than ten megawatts for existing tenants, and we plan to initiate a number of sustainable energy projects in 2022 to expand our renewable footprint. This is a crucial strategy that will lower our tenants’ electric bills while also helping us meet our social and environmental goals. We are particular excited about this, and our corporate tenants share that excitement as well. Many of them have sustainability and carbon reduction requirements but do not have the expertise or ability to actually finance or bring such a significant investment to life. We are able to assist them by deploying large amounts of capital on their behalf while we invest in this field on a standalone basis as well.
Excited for 2022
Despite Covid-19 and the various challenges of the year, SkyREM was really able to thrive this past year. I am very proud of that, proud of what we stand for, and eager to see what 2022 has in store. Stay tuned.