Acquisition and Investment
Acquisition and Investment

Crown West buys Denver's Plaza Quebec for $10.25M

by Michael Wayne

In it's fourth Denver area acquisition this year, Crown West Realty has purchased the Plaza Quebec office building in Centennial, Colo., for 10.25 million from Principal Financial Group.

Grubb & Ellis' Ryan Stout and Nate Bradley have been hired to lease the property.

The three-story office building is located at 6025 Quebec St. and contains 94,400 square feet. Built in 1984, it is currently 93 percent occupied and will have over 20,000 square feet of space available for lease in 2008 and 2009.

Address: 6025 Quebec St., Centennial, Colo.

Size: 94,400 square feet

Built: 1984

Read More »
Acquisition and Investment

Crown West acquires Union Plaza for $17.4M

by Michael Wayne

Crown West Realty has acquired the Union Plaza office building in the Denver, Colo., suburb of Lakewood for $17.4 million from ACF Property Management Inc.

The 140,671 square foot office building is located at 200 Union Blvd. and is currently more than 90 percent occupied. Current tenants include First American Real Estate Tax Service, CPA Gibson Steven and Distributed Generation Systems. Crown West plans to upgrade the building's interior and exterior.

Lakewood is located approximately 8 miles southwest of Denver and has a population of 140,671.

Address: 200 Union Blvd., Lakewood Colo.

Read More »
Acquisition and Investment

Crown West acquires Atlanta office park

NORCROSS, GA - Crown West Realty, LLC has acquired the Northwoods Commons flex/office complex in the Atlanta suburb of Norcross, GA., from Chicago-based Rushmore Properties for an undisclosed price.

Thomas Shafer of Resource Real Estate Partners represented Rushmore while Crown West was self-represented.

Built in 1986, the three-building complex is located at 4940-5000 Peachtree Industrial Blvd., and contains 101,000 square feet. It's currently 57 percent leased with major tenants including BravePoint, Inc., an information technology company, Advanced Control Systems and Delta Environmental Consultants.

Crown West plans to renovate and upgrade the interior and exterior of the property, which will continue to be leased and managed by Resource Real Estate Partners.

Rushmore acquired the property in June 2004.

Norcross is located roughly 20 miles north of Atlanta.

Read More »
Acquisition and Investment

Crown West Doubles NC Portfolio With $61M Buy

CLAYTON, NC - New York City-based Crown West Realty LLC has acquired the 1.1-million-sf Carolinas Distribution Center distribution warehouse and cold storage complex at 1053 Shotwell Rd. for $61.25 million. The property was acquired from Fulcra Enterprises.

Originally developed by Winn-Dixie Stores to be used as a regional distribution complex in 1998, the property is a four-building facility that may be expanded by approximately 300,000 sf. Located between Interstate 40 and Interstate 95, it provides access to the entire eastern seaboard.

Crown West asset manager Ed Gargiulo tells that the acquisition price was $38 per sf for the dry warehouse space, $87 per sf for the freezer space and $1 per sf for the excess land. The property was acquired at an overall 7.5% cap rate. "The warehouse distribution market is healthy and getting healthier," Gargiulo says. "We love the location of this property."

It is currently 98% leased to tenants, including Hallmark Cards Inc., Smithfield Foods Inc., Kuehne + Nagel Inc. and HBI Priority Freight. Locally based Colliers Pinkard will handle the leasing and management of the center. No decisions have yet been made about whether new space will be constructed, although it is unlikely the space will be developed speculatively, Gargiulo says.

With the acquisition, Crown West more than doubles its North Carolina portfolio. The company plans to acquire other industrial and office acquisitions in the Southeast. "We think Carolinas Distribution Center is a great platform to expand in the area," he says.

Read More »
Acquisition and Investment

Crown West acquires Buildings in Phoenix, Denver, sells another

Journal of Business

SPOKANE - Crown West Realty LLC of Spokane, says it has bought two office buildings in Denver and Phoenix, the latter one with a partner, for a combined $28.7 million. Additionally, it says it has sold a building in Phoenix for $29.4 million.

Crown West teamed up with The Traveler's Companies Inc., of St. Paul, Minn., for the third time in the last three years to acquire the latest property it bought, the two-story, 109,000-square-foot Corporate Center in Phoenix. The purchase represents its 17th acquisition in the Phoenix market since 2001. The Corporate Center had a 45 percent occupancy rate at the time it was sold, which fits with Crown West's overall strategy, says Bob Olshan, vice president and head of Crown West's Phoenix office. Olshan says that the company's leasing and management teams should have the building fully occupied within 12 months.

Crown West sold the Foothills Corporate Center II, in Phoenix, for $29.4 million, two years after acquiring the 145,000-square-foot office and data center for $16 million. It recently was able to bring the occupancy rate there to 100 percent, up from 84 percent when it bought the building, Olshan says.

Separately, Crown West says it has completed the purchase of an 11-story office building in Denver for $17.4 million. Major upgrades are planned for that 156,000-square-foot structure, it's fourth acquisition in Denver since 2005.

Read More »
Acquisition and Investment

Corporate Center Attracts $17M From Crown West

By Amy Wolff Sorter
August 29, 2007

PHOENIX - In a value-add play, Crown West Realty LLC, headquartered in New York City, and Travelers Cos. Inc. joined forces to acquire the 109,332-sf Corporate Center. The partnership acquired the 45%-occupied back-office building for $17.3 million, with plans to lease up and stabilize the northwest-side building.

Bob Olshan, vice president with Crown West and head of the Phoenix office, says the asset at 10400 N. 25th Ave. was brought to the joint venture's attention by the local office of CB Richard Ellis Co., which represented Scottsdale-based seller International Capital Partners. "This was a well-located property in great condition, with very little capital improvements needing to be done," Olshan explains. "The value-add to us is that it's more than 50% vacant. It's a lease-up play for us."

Mike Sawyer, director, and Tim Whittemore, senior director with Cushman & Wakefield of Arizona Inc.'s Phoenix office, had the leasing assignment when ICP owned the building, and Olshan says they'll continue working on filling it up. He points out that the departure of Hartfolrd Insurance Co.'s western regional office in June 2007 left a whole floor vacant, which is something the buyer knew when it went under contract. "We're looking either for a full-floor tenant, or we can break it up," Olshan says.

He tells that Crown West's relationship with Travelers of St. Paul is opportunistic, rather than goal-driven. "When a deal makes sense to both of us, we do it," he says adding that the partnership has no acquisitions or disposition in the pipeline.

The joint venture acquired two assets in late 2004. These were 11 buildings totaling 440,000 sf in Arizona Business Park between Bell and Greenway roads and Interstate 17, and the 234,282-sf Camelback Center at 2355 E. Camelback Rd. Crown West and Travelers sold Camelback Center earlier this year for $325 per sf.

In acquiring Corporate Center, the buyer assumed an existing loan representing a 65% LTV. Barry Gable, Mindy Korth and Mark Dancer of CBRE's Phoenix office represented ICP. Jerry Noble, Pat Devine and Greg Mayer, also with CBRE's Phoenix office, negotiated on behalf of the joint venture.

Read More »
Acquisition and Investment

One Cherry Center sells for $17.4M

The Denver Business Journal

DENVER - Crown West Realty LLC continues shopping for properties in metro Denver.

The Spokane, Wash., company has acquired the One Cherry Center office building at 501 S. Cherry St. in Glendale for $17.4 million.

CMD Realty Investment Fund III was the seller. The fund is part of Chicago-based CMD Realty Investors Inc., a private investor in office properties with a nationwide portfolio.

Located near the upscale Cherry Creek North neighborhood, One Cherry Center includes 155,717 square feet of space. The 11-story building was completed in 1986.

Crown West plans major upgrades to its latest Denver acquisition, which is 83 percent occupied by tenants such as W.E. Kieding Interior Architects, The Colorado Health Foundation and The Denver Hospice (formerly Hospice of Metro Denver). The new owner will redevelop common areas such as the main plaza and lobby.

One Cherry Center is Crown West's fourth Denver-area acquisition since 2005. The company also owns the following local properties:

- Corporate 25, 7200 S. Alton Way, Centennial -- 132,800-square- foot office building.

- Orchard Plaza, 8745-8775 E. Orchard Road, Greenwood Village -- 157,450-square-foot office/industrial "flex" property in the Denver Tech Center.

- Golden Ridge I & II, 500-560 Golden Ridge, Golden -- Built in 2000 and 2001, Golden Ridge includes a total of 100,800 square feet of industrial space near Interstate 70 and Highway 40.

Formed in 1996, Crown West is a subsidiary of New York City investment firm Petrus Partners Ltd. Crown West has offices in Greenwood Village, Phoenix and New York, as well as Spokane. Crown West-Petrus manages a $125 million investment fund, and owns and manages 8 million square feet of office and industrial space nationwide.

Crown West has hired Jamie Gard, Nathan Johnson and Austin Kane at Denver-based Frederick Ross Co. to lease space at One Cherry Center.

Read More »
Acquisition and Investment

Crown West Sells 144,910-SF Foothills

By Amy Wolff Sorter
July 23, 2007

PHOENIX - A value-add investor headquartered in New York City sold the 144,910-sf Foothills Corporate Centre II to a TIC buyer from Los Angeles, receiving $29.5 million in the process. Crown West Realty LLC disposed of the two-building, class A office asset following a two-year hold complete with lease-up.

"This was purely a rent roll play for us. The property had about 25,000 sf that had been vacant since the building was completed in 2000," Bob Olshan, vice president and southwest region head of Crown West, tells He says that Crown West extended AT&T's lease, which included a 5,000-sf tenant give-back in the center at 14601 and 14605 S. 50th St. "That allowed us to complete a 30,000-sf lease with Alaska Airlines. Plus we made an early renewal with Global Crossing," Olshan adds.

The result was that buyer, FORT Properties Inc., ended up with a stable class A asset. Olshan notes that AT&T's lease expires next year, but he doesn't anticipate the company going anywhere. "It's their redundant facility. They'd have to build another before they could take this one off line," he says, adding that 8,500 sf comes up for renewal in 2010, the most activity that will be seen until 2017.

When Crown West acquired the property in late 2005 for $16 million, occupancy was 82%. At the recent closing, the center was 100% occupied.

According to Chris Toci with Cushman & Wakefield of Phoenix Inc., the center's month-long marketing period attracted more than a dozen offers. "FORT is new to the area, and had been aggressively trying to make their way into Phoenix," says Toci, the seller representative. "They liked the asset, loved the location and liked the fact it was a very stable rent roll with good credit."

Toci, who worked with Cushman & Wakefield's Ted Harrison, Dave Seeger and Karsten Peterson, says that Foothills Centre II is FORT's first area investment, and the company is looking for other assets.

Read More »
Acquisition and Investment

Crown West Realty Enters DC Market With $14M Buy

By Erika Morphy
July 6, 2007

GAITHERSBURG, MD - Crown West Realty, a subsidiary of New York City investment firm Petrus Partners Ltd., has made its first purchase in the DC market with its acquisition of 704 Quince Orchard Rd. for $14.3 million from New Boston Fund.

A 77,000-sf, class A, fully occupied building, 704 Quince Orchard Rd. sits in the heart of Maryland's Biotech and Medical Technology Corridor, which is one reason why the company chose it as its foundation for a future Washington area portfolio, Ed Gargiulo, asset manager for Crown West Realty, tells

Also, he says, Greater DC area growth is moving at a rapid pace and the I-270 corridor, from Bethesda to Frederick, is poised to capture a great deal of it. "While there is clearly rent growth happening in Bethesda, we expect Gaithersburg to see some benefit from this going forward."

Even though the building is nearly fully occupied by such tenants as Ace*Comm Corp., Guru Inc., FOI Inc., and Weichert, Gargiulo says upcoming availabilities have been identified as one avenue for future value-add. "There is going to be some roll-over as well as opportunity to put together larger blocks of space for tenants."

The company is looking at other properties on Rockville Pike, he adds. Likely, its next purchase will be at a higher dollar amount than the $14 million it paid for 704 Quince Orchard Rd. Crown West Realty's sweet spot, he says, is usually between $20 million to $50 million. The Quince Orchard Road building was something a departure for the firm in that respect, he adds. "It is a good building for us to use to penetrate the market, get our feet on the ground and develop relationships."

The company has identified a few select markets in which to expand. Besides Washington, DC's suburbs, it is also looking at Phoenix; Denver; Raleigh and Durham, NC; Atlanta; and the Chicago suburbs. All have been at least initially penetrated except for Chicago, Gargiulo says. "We are not interested in being a single asset owner in any market."

Read More »
Acquisition and Investment

Downtown Building Sells for $69 Million

By Andrew Johnson
July 2, 2007
The Arizona Republic

PHOENIX, AZ - A Spokane, Wash - based real estate investment firm has paid $69.25 million for a 26-story office tower on Central Avenue, the second such transaction to occur in Phoenix's Central Corridor in the last month.

Crown West Realty LLC bought Phoenix Corporate Tower, 3003 N. Central Ave., from San Francisco-based Krausz Co. Inc.

"That is truly a strong statement not just for the (central business district) but for all of Arizona, that you have institutional investors looking in what was once a lagging market," said Charles Miscio, first vice president with CB Richard Ellis' Phoenix office, and broker of the deal.

Krausz, which bought the building in 1990, according to Maricopa County property records, made a $40.6 million profit on the sale, Miscio said.

The sale closed last week, he added.

In early June, real estate investment firms from California and Colorado paid $70.3 million for Great American Tower, a 24-story office building at 3200 N. Central Ave. The tower is only two-blocks from the property that just sold.

Recent sales in the Central Corridor show potential for resurgence in an office market that has historically lagged behind the Camelback Corridor, Scottsdale Airpark and downtown Phoenix markets in terms of rental rates, occupancy and overall activity.

The corridor still faces roadblocks in lifting occupancy rates, Miscio said, including light-rail construction and a lack of retail and housing.

"It's still a 9-to-5 workplace," he said. "Not many people are living, entertaining and playing within the (central business district) market, which in my opinion will change."

The price Crown West Realty paid for Phoenix Corporate Tower - which was 85.5 percent leased at the time of the sale - represents a rental rate of about $25 per square foot, Miscio said.

Newly released data from Cushman & Wakefield of Arizona Inc. shows the average rental rate in midtown Phoenix's office market to be $23.12 per square foot.

The 445,811-square-foot building's anchor tenant is the law firm Fennemore Craig PC, which occupies about 128,000 square feet, Miscio said.

Krausz invested about $30 million in the tower while it owned the building, including adding about 62,000 square feet by converting exterior balconies into interior space, Miscio said.

Crown West Realty plans to add retail space to the building's first floor and turn some of the vacant space into smaller office suites, said Bob Olshan, vice president of Crown West Realty.

Read More »