Tesseract Capital Group (TCG) is an opportunistic commercial real estate investment company headquartered in San Francisco, CA. Its core business focuses on the acquisition, redevelopment, and management of multifamily apartment assets throughout California. Since 2005, the principals of TCG have successfully completed 70 transactions and hold ownership interests in over 1,000 multifamily units nationwide. The team comes from an amalgamation of complimentary real estate backgrounds, including: construction, property management, brokerage, lending, securities, and private equity.
We spoke with Derek Flores, president of construction and development at Tesseract Capital Group, about the opportunities for EV charging in multi-unit dwellings.
What does Tesseract Capital Group do, and how does it factor sustainability into its mission?
We are a commercial real estate private equity company, and we focus on the acquisition redevelopment in management of multi-tech assets throughout California. Basically, we acquire apartment buildings and then we redevelop them to re-position them.
We believe that we can develop, build and rehabilitate housing in a way that is sustainable. It’s choosing something as small as energy efficient fixtures, or it could be something as large as putting a solar panel system on the property that would offset 100% use of electrical consumption at that asset. In fact, the majority of our properties have solar panels.
Why did you decide to incorporate multi-unit development electric vehicle charging stations into your properties?
We wanted to position our assets to be technology forward. As electric vehicles become more and more popular, chargers are an important incentivizing amenity for our residents.
Like someone will say, “Hey, I want to move here because there are chargers in this complex and other complexes don’t have them,” and that can give us a competitive advantage while being sustainable.
How did you navigate the process of acquiring electric vehicle charging?
Before this project, we had zero knowledge about EV charging infrastructure and the process. In terms of getting them installed, the process was pretty straightforward and actually was facilitated by our solar panel contractor, who provided us with options.
Customer service and reliability were the most important factors when it came to evaluating the different options. We realize this is a newer technology and any kind of tech can face issues. So it’s about how little we can have these issues come up and when they do come up, how good the support team is to help us get through these issues.
In the end, our solar partner recommended EV Connect because of ease of use at the user end, ease of implementation, and reputation.
Where does having EV chargers place you among the competition?
I think we’re ahead of the competition, especially with the type of assets we focus on. We’re not doing Class A high-rise luxury apartments in downtown San Francisco, but for what we work with, we definitely have an advantage against our competitors because we have an understanding of the need for the sustainably produced energy and EV cars.
Where do you see opportunities for growth in placing EV stations at multi-unit dwellings (MUDs)?
Definitely, there’s a lot of room for growth here as the popularity of EV cars increases. Everyday working class families live at our properties and as they start to acquire electric cars, they’re going to need places to charge.
We see EVs as the direction transportation is going toward, and it aligns with our company mission of sustainably preserving the environment. We’re very supportive of the EV movement and we’re committed to having the infrastructure available to support that growth.