Acquisition and Investment
Acquisition and Investment

Crown West Puts Up $69M for 450,000-SF Office

By Amy Wolff Sorter
June 28, 2007

PHOENIX - Crown West Realty, LLC has added the 450,000-sf Phoenix Corporate Tower to its portfolio, paying $69.25 million to long-time owner, San Francisco-based Krausz Co. Inc. The 40-year-old building was 83% leased at sale time.

Phoenix Corporate Tower, located at 3003 N. Central Ave., is in line for a major upgrade to the exterior, plaza, lobbies and other common areas, according to a press release about the sale. Crown West did not return telephone calls by press time to comment on the acquisition and the value-add plan.

The 26-story tower's major tenants include Fennemore Craig PC, Littler Mendelson Bacon & Dear PLLC, Winslow Orcutt Partnership and Clifton Gunderson LLP. CB Richard Ellis senior vice president Keith Lambeth and first vice president Charles Miscio will handle leasing. The quoted rate is $22 per sf.

The acquisition is Crown West's 15th in the area since 2001. In the press release, Bob Olshan, vice president of the Spokane, WA-based Crown West and Phoenix office head, North Central Avenue's renaissance, as well as that of the CBD, was a mitigating factor in the acquisition "The influx of residential developments, educational facilities and retail amenities is making Central Avenue an increasingly attractive and cost-effective alternative for office tenants," he says.

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Acquisition and Investment

$18M Buy Marks Crown West's Market Entrance

By Natalie Keith
June 13, 2007

ATLANTA, GA - Crown West Realty, LLC, with offices in Denver and New York City, has entered the market with the $18.1 - million acquisition of the 196,000 - sf Cobb Corporate Center office park. The property, located at 350-450 Franklin Road immediately northwest of the South Marietta Parkway exchange on Interstate 75, consists of five single-story flex office buildings.

Among reasons for the acquisition is its location. The property has access to Interstate 285, Interstate 75, US 41 and GA 120 and is located in Cobb County, which is home to more than 100 Fortune 500 companies.

Crown West Realty Eastern US asset manager Ed Gargiulo tells that the property is 73% occupied. "We're a value-add buyer that looks for properties that are capital constrained of where there is significant vacancy," he says.

Resource Management Partners will handle leasing and management of the property. Crown West is planning to improve the appearance of the property with capital improvements, such as improvements to the building's exterior and upgrades to the landscaping and parking lot. Current tenants include Ford Motor Co., Avnet Inc. and Acuity Specialty Products Group Inc.

Gargiulo adds that Crown West plans to acquire more property in the Atlanta area. "We look at markets that have struggled in the past but are showing signs of turning around," he says. "Other markets where we've had success are Phoenix, Denver and Raleigh/Durhan."

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Acquisition and Investment

Crown West Sells 112,800-SF Flex Industrial

By Amy Wolff Sorter
May 10, 2007

PHOENIX - After a three-year hold and repositioning, a local company has sold the 112,800-sf Lakeview Business Center. The five-building flex industrial project was acquired for $13.5 million by a San Mateo, CA private investment group.

Crown West Realty had boosted the 20-year-old asset's occupancy to 90% following renovation and aggressive leasing. "That's kind of their business model. They're not typically long-term holders," Tracy Cartledge, senior vice president for locally based Grubb & Ellis/BRE Commercial LLC, tells "They try to enhance value, then sell. This is consistent with what they've done with their other assets." The sales team included senior vice presidents Bob Buckley and Steve Lindley plus Rick Lee, principal with locally based Lee & Associates.

Cartledge says the marketing period for the complex at 2840-50 S. 36th St. and 2821-3201 S. 35th St. was brief, but attracted a great deal of interest, with G.W. Williams establishing itself early in the game with a strong offer. In addition, G.W. Williams owns two similar buildings in the neighborhood. "From start to finish, it was about a month-long process," he adds.

Cartledge says the building, situated on 7.5 acres, has a stable lease roll, with its upside based on demand and potential rent increases. "We and the buyer believe that, given the cost to replicate that product, it's ideally positioned to benefit from increased rents," he says. "The market is close to full occupancy and to build that type of product would be expensive today. They couldn't build for the rents they're achieving now."

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Acquisition and Investment

$14M Plus Drives Swap of Scottsdale Commerce

By Amy Wolff Sorter
March 23, 2007

SCOTTSDALE, AZ - In a value-add play, Crown West Realty LLC has bought the 118,000-sf, five building Scottsdale Commerce Center. The five building office/flex complex has sold for $14.35 million, with the buyer planning to invest another $1.2 million into upgrades.

The Phoenix-based Crown West beat out 12 other bids for the center at 1375-1525 N. Hayden Rd. with its superior market knowledge, says Chris Toci, senior director with Cushman & Wakefield of Arizona Inc.'s Phoenix office. "They've run this several times before, where they go in, reposition the asset and work their magic," he says.

Bob Olshan, vice president in the Southwest for Crown West, tells that renovations should take about six months to complete. The overhaul will include the facade, landscaping, signs and mechanical systems. "This fit perfectly within our strategy," he says of the 81%-occupied center. "This has a lot of vacancy right now, or space becoming vacant shortly, allowing us to improve the rent roll."

Toci estimates the roll will just top 40% during the next three years, giving the new owners an opportunity to boost rents that now sit at a 79 cents per sf, triple net to more than $1 per sf, triple net. "Even with that, they'll still be below new construction-equivalent rents," Toci says. "New products are going for $1.25 per sf to $1.35 per sf per month."

Olshan says Crown West continues to look for value-add assets in the Phoenix area and nationally for its $125-million fund. He says the company will soon close on another asset in the CBD.

Pacific Development Partners LLC of Beverly Hills, CA was the seller. Its C&W team included directors Brian Ackerman, Ted Harrison and Pat Harlan. Crown West used in-house representation to negotiate its terms.

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Acquisition and Investment

Crown West Realty Completes Orchard Plaza Acquisition

Tyler Pacific Sells 157,540 - SF Flex for $130 PSF

By Steven Ferreira
CoStar Group

Crown West Realty LLC recently acquired Orchard Plaza I, II, III and IV in Greenwood Village from Tyler Pacific Inc. for $20.5 million, or about $130 per square foot.

The four single-story flex-office buildings at 8745-8775 E. Orchard Road in Greenwood Village total 157,540 square feet on 12 acres just east of I-25 in the Denver Technological Center. Crown West plans to renovate and upgrade the properties to better meet the needs of its existing tenant base.

Tim Richey and Chad Flynn of Cushman & Wakefield of Colorado represented both parties.

On the heels of its acquisition of Orchard Plaza, Crown West will open a Denver office on March 1 headed by asset manager Kevin F. Richey, a 25-year veteran of the Colorado market with previous positions at Columbine West LLC and Frederick Ross Co.

Please refer to COMP # 1242236 for further details.

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Acquisition and Investment

Greenwood Village Buildings Sold

The Denver Business Journal

DENVER, CO - Crown West Realty, L.L.C. has purchased its third set of Denver-area office buildings since entering the market in 2005.

The Spokane, Wash., company said Friday it has purchased Orchard Plaza I, II, III and IV in Greenwood Village for $20.5 million. The seller was Tyler Pacific IV L.L.C.

The four single-story buildings total 157,540 square feet on 12 acres east of Interstate 25. Crown West Realty said it intends to renovate and upgrade Orchard Plaza, which was 78 percent occupied at closing.

Crown West Realty said it will open a Denver office in March and begin looking for other properties to buy in Colorado.

The company in 2005 paid $12 million for Corporate 25, three inter-connected buildings in Centennial with a combined 132,800 square feet.

Last year Crown West Realty bought Golden Ridge I and II, two single-story office buildings in Golden, for $11.35 million. The buildings have a combined 100,800 square feet of space.

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Acquisition and Investment

Camelback Building Sells for $75 Million

By Yvette Armendariz
The Arizona Republic

PHOENIX - Camelback keeps drawing in investors ready to plunk down multimillions for a piece of the Valley's premier office corridor.

The latest building sale closed this week for $75.62 million, or $325 a square foot. The property is the nine-story Camelback Center at 2355 E. Camelback Road, which is tucked behind several office and condo high-rises.

New York-based Teachers Insurance and Annuity Association of America, a financial-services company, bought the building. Teachers Insurance focuses on retirement savings for teacher and medical professionals and has over $400 billion in assets under managment. The acquisition is the company's third in Phoenix.

Crown West Realty acquired Camelback Center in November 2004 for $32.35 million and focused on filling the office with high-quality tenants.

"When they bought the was only 40 percent occupied and there was a lot of shell space," said Chris Toci, who was part of the Cushman & Wakefield of Arizona team that represented both buyer and seller on the deal.

Now, the building is 94 percent occupied. Tenants include Wells Fargo Bank, Oracle USA and First American Title Insurance Co.

Current rents at Camelback Center are about $25 a square foot, but the market is averaging about $35 a square foot, and some buildings are fetching over $40 a square foot.

Brian Ackerman, Ted Harrison, Mike Beall and Tim Whittemore round out the Cushman & Wakefield team on the deal.

Kevin Calihan of CB Richard Ellis said that building sales going for over $300 a square foot is less of a shocker these days.

"Years ago, it was a theoretical barrier," he said. "It's a reflection of rising rents."

Several buildings have changed hands recently in the area, including Camelback Esplanade's five towers.

The biggest deal was the $117 million sale last year for the Hines building at 24th Street and Camelback. It pulled about $373 a square foot.

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Acquisition and Investment

100,000 - SF Office Campus Trades Hands

By Brian K. Miller

GOLDEN, CO - Golden Ridge I and II, a pair of single-story office buildings here totaling 100,800 sf, have changed hands for $11.35 million. The new owner is Crown West Realty of Spokane, WA.

Located at 500-560 Golden Ridge Rd., the buildings were constructed in 2000 and 2001; their combined occupancy is 84%. Noteworthy tenants include Rockwell Automation, Health Grades Inc., and TechLaw Inc. The vacancy rate and in-place rental rate (approximately $11.50 per sf/NNN) are comparable to the average for the submarket as a whole.

Crown West Realty president Rob Gragg tells that the buildings are the company's second acquisition in the Denver area and that he expects to close several additional deals in 2007. The previous acquisition was Corporate 25, a fully leased three-building, three- and four-story office campus within Denver Tech Center.

"We're investing there because it's a recovering market," says Gragg, on his cell phone in the Denver airport. "We are negotiating several other [Colorado] deals; we have one under contract and are in best-and-final on others."

During escrow for the Golden Ridge Road property, Crown West was able to expand one tenant and renew another, eliminating any potential for lease expirations in 2006 and 2007. When the expansion deal takes effect in a few months, the cap rate on the Golden Ridge Road transaction will be in the vicinity of 8%, Gragg says.

Formed in 1996, Crown West Realty is the privately-owned real estate investment, development and management subsidiary of Petrus Partners Ltd., a New York investment firm. It owns and manages approximately seven million sf of leased office and industrial properties along with 600 acres of undeveloped industrial land.

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Acquisition and Investment

Crown West Realty Acquires Office Portfolio


GREENSBORO, N.C. - Spokane, Wash. - based Crown West Realty has acquired a four-building, Class A office complex, located at 200 CentrePort Dr. in Greensboro. The 263,000-square-foot portfolio, which was purchased from Liberty Property for $26.7 million, consists of CentrePort I, II, and III and One Triad Center. The CentrePort complex has a 72 percent occupancy rate and includes tenants such as MCI Worldcom, Time Warner Entertainment, Ernst & Young and PriceWaterhouseCoopers.

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