SkyREM Makes A Difference

SkyREM is a diversified, real estate owner and developer, focused on long term assets which have upside. Today, our business is focused primarily on extremely well located large industrial assets which are dedicated to manufacturing, logistics and warehousing. Additionally, we own, operate and develop government, technology, medical/biotech, and necessary retail. Nearly all the assets we own and operate are mission critical and an integral part of our tenants’ business operations, and/or their mission in the case of key government uses — they could not operate or accomplish their mission without occupying our buildings.

SkyREM’s Beginnings

My first transaction in real estate began in August 1985, when I purchased a vacant uninhabitable building in the Bedford Stuyvesant section of Brooklyn, NY. Since then, my moral compass has steered me towards activities that have a positive social impact. I converted the building into a home for the developmentally disabled and leased the building to Independent Living Association, a not for profit that operates the facility. I still own that property today, having renewed and extended the initial 20-year lease. We are actively involved in supporting the activities of this organization, as well as many others in areas that. We make an annual grant to them through our private 501(c)(3) not-for-profit, Northern Charitable Foundation, helping them to continue and expand their important work- substantially increasing our grant in light of the recent epidemic. I recently had the pleasure of meeting with and personally delivering our support to the executive director, Arthur Palevsky, who has run the organization for many years.

An extensive and diverse portfolio

Our portfolio is clustered in desirable high growth areas, from northern Connecticut, throughout the east coast down to Florida and well into the Midwest, all located in critical areas on major thoroughfares. I am proud that nearly all the properties that we own fulfill a positive social impact, such as our Department of Homeland Security facilities that are dedicated to public safety, as well as our GSA Department of Labor job training program which we built, and a mission critical facility for the State Police of Pennsylvania, to name but a few.

Our industrial facilities fulfill an important mission for all our corporate partners, from storm window manufacturing for Pella Windows for the entire state of Florida, non-slip carpet manufacturer in Atlanta, roofing materials, storage and logistics in South Carolina, multiple logistics companies in North Carolina which serve food security, food pallets for distribution, FedEx and many more. In Virginia, we have an extensive portfolio, including but not limited to a major pillow manufacturer that we house, on a long-term basis and we’re currently doubling the size of their facility, SKF precision parts manufacturing for jet engines to produce the newest and most efficient engines, headquarters buildings for important divisions of CCL label, Fiskars, Sports Direct, Medline, TJ Maxx Home Goods. We also have significant development land holdings and many new state-of-the-art, cutting-edge facilities in advanced planning stages.

Environmentally conscious with every project

We remain cognizant of the environmental concerns we all face and have built a sister company, Sky Power, LLC, to integrate renewable energy into our existing portfolio and provide sustainability, resiliency and reliability solutions to our corporate clients. Corporate tenants desire this focus, as many of them have sustainability and carbon reduction requirements, however they do not have the expertise or desire to implement or fund this substantial investment. Our commitment allows us to deploy large amounts of capital in the field of renewables and sustainability on behalf of our corporate tenant partners, and to invest in this field on a stand-alone basis as well. This has recently resulted in the completion of four large solar power plants — two in New Jersey and two in Connecticut- which supply nearly all of the onsite power needs to the tenants in these extremely large facilities — we have many others being developed.

Making a positive social and environmental impact in not a new “ESG” mandate that I recently adapted like so many “me too” companies. Making a positive impact and giving back has been the only way we have worked for over 35 years. It is nothing new for SkyREM and something that we are continually refining and improving. We are constantly striving to provide the best and most cost efficient solutions to our corporate partners, always providing them best in class value-add solutions, while simultaneously supporting those in need and less fortunate.

Developments Over Demolition

The majority of our real estate activity is existing structures — the energy inputs to construct these substantial properties, which are often in irreplaceable locations, has already been expended — thousands of tons of steel, millions of cubic yards of dirt moved, electrical connections, not to mention untold multitudes of trucks to deliver the supplies and prepare the sites. The structures are all sound and kept by our asset management team in better-than-new condition. The financial and environmental cost to improve an existing structure is extremely modest compared to new development and is usually located in a much better area than “new development”. The cost to the corporate partner of occupancy is also substantially less than new construction. Endless new development, unless necessary is a zero-sum gain- new construction, can be harmful to the environment when all the actual environmental costs are accounted for. If we look into the future, we can see a world with greater efficiency, conservation, and re-use of resources. Endless building and demolition are not the way to go.

Take a quick look at Florence Italy- many of the apartment structures are about 500 years old and in great condition, thanks to lasting construction techniques and reasonable upkeep. The Uffizi Gallery, home to one of the most glorious art collections in the world, was originally built between 1560 and 1581 as an office building. Think about all the environmental cost saved by not demolishing and rebuilding this truly glorious building.

There is a constant race for more energy resources, consumption, destruction, and a search for the magic bullet that does not exist, that will solve all our problems. Imagine a more efficient world with less waste of energy and other resources and a cleaner, healthier world for all. RE-USE, REPURPOSE, RECYCLE — it seems simple! We all need a common will to accomplish this in the best way possible, as well as the political will to implement it.

Existing structures are not always able to accommodate the needs of our evolving society and economy, so in order to facilitate greater efficiency for the needs of a growing population, SkyREM has selectively acquired land to construct new structures that will offer best in class efficiency, integrated automation technology to reduce the building footprint and optimize utilization, as well as integrated renewables that will offer a NET ZERO energy consumption. All of the above will offer a better quality of life for the people employed by our corporate partners and a substantial ahead-of-the-curve to offer value-add solutions going forward.

Broad and long-term range of experience

We are not new to the business as many others are — when retail was hot, they developed retail, then it was offices, now logistics are on trend, so many have jumped on the bandwagon. These “mercenaries” are a major contributor to waste and overbuilding with many operating without values or long-term vision.

That is how we are different- SkyREM will always supply the best solution at the most favorable pricing with the least environmental impact and the greatest environmental benefit to likeminded corporate and government partner. The definition of “long-term assets with upside”- a result of we are, what we do, and how we partner with our long-term business partners and communities.