Another Entry Into the Multifamily EV Charging Melee

A Texas-based company called Amperage Group, apparently was formed in September 2022 and playing off the electrical term in its name, announced the launch of Amperage Capital, “backed by a number of large Dallas family offices.” The company will invest in designated electric vehicle (EV) charging spaces in multifamily developments by paying for construction costs and charging equipment, according to a press release.

“In order for electric vehicles to be widely adopted, there needs to be a solution for the 44 million Americans who live in apartment communities,” CEO Farrukh Malik said in prepared remarks. “Currently, over 90% of electric vehicle owners charge their cars at home. However, apartment residents often have to share charging stations, which can lead to a frustrating customer experience and prevent them from fully benefiting from electric vehicle ownership.”

CRE has seen growing activity on the EV charging front, with examples like charging equipment reseller agreements, seed funding for companies focused on multifamily EV charging, and installation of public-access charging stations near commercial real estate properties.

But Amperage Capital has taken a focus that may be a first in the industry. To date, electric vehicle chargers in shared spaces have tended to be non-designated access. A parking lot will have perhaps a handful of spots with charging equipment. When it comes to charging outlets, the term “designated charging spots” has tended to mean parking spots intended for any EV and not to be used by conventional internal combustion vehicles.

Given the relatively low number of EVs on the road, this is not surprising. But there is growing adoption of the technology. While in 2021 fully electric vehicles were 3.2% of all car sales, that grew to a 5.8% share in 2022, according to a Wall Street Journal report.

That doesn’t mean in the immediate future virtually all vehicles will be electric. As regulations and strategic plans of manufacturers will push that number upward, there is still a much larger number of fossil-fueled vehicles on the road. However, the growth will begin to make limited numbers of charging stations in multifamily properties — and everywhere else — more difficult to manage. What happens on the first day when there are more EV owners looking to charge their cars at the same time than there are charging stations?

“To address this issue, we believe that apartment residents should have access to designated home charging spaces, rather than relying on shared charging stations,” Malik said. The company claims that personally designated charging needs 10 times the investment of shared spaces, although the company doesn’t explain the math behind the calculations. That figure, though, combined with the long-term nature of financial return, makes such expense difficult for multifamily owners to justify.

Amperage Capital would provide complete funding for designated charging and would take on the “management, design, construction, permits and implementation of the entire process.” And, presumably, the compensation.