Energy Rights and Power Production, Chris Pawlik @ EPR Squared

Real Angle: Building Success in Commercial Real Estate

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

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