Energy Rights and Power Production, Chris Pawlik @ EPR Squared

Chris Pawlik, co-founder of EPR Squared, explains the concept of energy producing retail realty and how the company offers a sale leaseback of energy rights to property owners. By developing energy rights behind the meter, property owners can decrease operating expenses and increase net operating income. The agreements typically last around seven years, and EPR Squared provides a percentage rent to the property owner based on the revenue generated from the power. The company targets projects with a minimum size of 30,000 to 50,000 square feet, but is also developing an energy rights portal to accommodate smaller projects.

 

Takeaways

• EPR Squared offers a sale leaseback of energy rights to property owners, allowing them to decrease operating expenses and increase net operating income.
• The agreements typically last around seven years, and property owners receive a percentage rent based on the revenue generated from the power.
• EPR Squared targets projects with a minimum size of 30,000 to 50,000 square feet, but is developing an energy rights portal to accommodate smaller projects.
• The real estate market conditions, such as interest rates and leasing activity, can impact the adoption of EPR Squared's services.

Chapters

 

00:00 Introduction and Company Overview

00:49 Explanation of EPR Squared

04:02 Sale Leaseback of Energy Rights

05:54 Revenue Sharing Agreement

08:25 Duration of Agreements

09:57 Impact of Real Estate Market on EPR Squared

14:54 Market Potential and Location

17:03 Comparison to Other Financing Options

20:56 Longevity of Solar Equipment

21:08 Customer Acquisition

23:29 Surprises in the Business

28:52 Impact of Real Estate Market on EPR Squared

32:48 Minimum Size for EPR Squared Projects

34:42 Energy Rights Portal

---

This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry.

Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/

Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases