Bakersfield, CA – August 2024
Adler Realty Investments has sold its 1,000-kilowatt solar power plant at the Cal Twin Towers office complex in Bakersfield, California. This project, one of three solar plants constructed by Adler, was sold to the current owner of the office building. The buyer, who acquired the office complex in 2020, recognized the financial benefits of owning their power source and providing lower utility costs for the property.
In 2016, Adler Realty Investments began exploring energy efficient retrofits and the potential to build solar plants at its properties. After careful analysis of the financial and environmental benefits, Adler identified three of its office properties and constructed solar facilities at each of them. The plants were designed to provide for 75-80% of the power being utilized at those properties. The Cal Twin Towers office complex emerged as a prime candidate, with its extensive parking area and Bakersfield’s reliable sunny weather. The complex provided an ideal setting for a parking canopy-mounted solar system. The other two projects located in Calabasas and Agoura Hills also benefited from the new solar facilities.
The financial outcomes were impressive. Investors recovered their initial investment within a year, benefiting from federal tax credits and accelerated depreciation. They also enjoyed substantial annual returns that exceeded expectations. Tenants benefited from clean energy at rates 10% lower than the local utility company rate, and 380 shaded parking spaces—a welcome relief in the heat of California’s Central Valley. The communities where the facilities are located were provided with a clean and renewable energy source resulting in a reduction of greenhouse gas emissions.
“We are pleased with the success of our solar projects and the innovation our team implemented,” said Mike Adler, CEO of Adler Realty Investments. “ It is not often that you can make improvements which not only benefit your tenants and investors, but also have a positive and lasting effect on the environment. We recommend that other real estate developers explore the benefits of solar energy.”
