Our Investment Approach
GKE is focused on acquiring strategically located, environmentally impacted real estate that has been discounted well below fair market value.
While practicing environmental law for over 25 years, Mr. Goldstein has forged important relationships among local and federal government regulators advocating Brownfield redevelopment. Through these channels, GKE can source undervalued investment opportunities while coordinating entitlement strategies to address affordable housing, renewable energy, and other underserved needs for stakeholders in the local community where these environmentally impaired sites exist. This process allows the fund to acquire seemingly undesirable properties at costs well below market comparables, cost-effectively reposition them to their originally unimpacted value, attract viable purchasers, and exit with an attractive yield to our investors.
The US EPA, defines a "Brownfield" as “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” GKE’s principals believe that this is the most favorable economic climate since the advent of environmental regulation in the late 1970s to implement a real estate investment strategy focused Brownfields.
GKE focuses on properties which are eligible for Brownfield Site Rehabilitation Act (BSRA). This act offers tremendous incentives to developers seeking to remediate and develop these stigmatized properties. Placement in the program provides eligibility for corporate income tax credits. In scenarios where the end-use incorporates affordable housing or a quality health care provider, properties within the BSRA are eligible for tax credits which provide up to 90% reimbursement for environmental remediation and horizontal development costs.
In addition to the value added through successful environmental remediation, GKE harnesses the multitude of federal and state sponsored incentives designed to encourage the remediation of environmentally impacted properties. These include but are not limited to the following:
- Bond financing
- Grants
- Impact fee waivers
- Infrastructure improvements funded by third-parties
- Loan guarantees
- Low interest loans
- Property tax abatements
- Tax credits (other than BSRA)
- Tax refunds
- Zoning enhancements
Targeted Acquisitions
Genres of properties which are typically eligible for the BSRA typically, but not exclusively, include:
- Agricultural sites
- Automotive dealerships
- Automotive facilities
- Dry-cleaning facilities
- Gas stations
- Golf courses
- Landfills
- Manufacturing facilities
- Nurseries
- Power plants
- Wastewater treatment plants
Geographic Focus
GKE has a primary focus on the acquisition of properties in states within the geographic boundaries of EPA Zone IV. These include:
- Alabama
- Florida
- Georgia
- Kentucky
- Mississippi
- North Carolina
- South Carolina
- Tennessee
Learn More About Our Community Friendly Approach to Investing
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