Acquisition and Investment
Acquisition and Investment
Jun/29/2006

Crown West buys property in N. Carolina

Company, its parent also announce $125 million investment fund closing

By Linn Parish
Spokane Journal of Business

Crown West Realty LLC, of Spokane Valley, has bought for $13 million an office building in Cary, N.C., near the Raleigh-Durham metropolitan area.

The transaction, the company's third in North Carolina, involves the purchase of the Regency Park building, a four-story, 112,000-square-foot structure that was built in 2000.

"This asset is perfectly suited as a corporate headquarters in a superior location," says Rob Gragg, a vice president at Crown West Realty.

Crown West plans to make some cosmetic improvements to the structure in the near future.

Earlier this year, Crown West bought for $17.3 million the Gateway Centre I and II complex, located in Morrisville, N.C., also in the Raleigh-Durham area. Two years ago, the company bought a property in Charlotte, N.C.

Separately, Crown West and its parent, New York-based Petrus Partners Ltd., announced the closing of a $125 million real estate equity investment fund, Petrus Inventors 2005 LP. The companies say the fund's goal is to acquire about $500 million in office and industrial properties over the next three years.

The investment group says it focuses on acquiring mid-sized office and industrial properties in select U.S. markets, typically in transactions valued at between $10 million and $100 million and requiring investments of $5 million to $25 million.

Formed in 1996, Crown West owns and manages about 7 million square feet of leased office and industrial properties and is headquartered at the Spokane Business & Industrial Park, which it owns and manages. In addition to North Carolina and Spokane, Crown West has commercial properties in the Phoenix area and in Denver.

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Acquisition and Investment
Jun/21/2006

Grubb & Ellis/Thomas Linderman Graham Facilitates Office Sale

REBUSINESSONLINE.com

CARY, NC - Jim McMillan, Martie Serianni and John Linderman of Grubb & Ellis/Thomas have represented the seller, American Tower, in the sale of a Class A office building, located at 400 Regency Forest Dr in Cary. Crown West Realty purchased the 112,000-square-foot property for an undisclosed price. Grubb & Ellis/Thomas Linderman Graham will serve as the exclusive leasing and management firm for the property.

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Acquisition and Investment
Jun/19/2006

Crown West Buys Spectrasite Building

THE NEWS & OBSERVER


CARY, NC - Crown West Realty paid $13 million for the 112,000-square-foot office building that was once the headquarters for Specrasite Communications before that company was acquired last year.

The building, at 400 Regency Forest Drive, is Crown West's second Triangle acquisition.

The Spokane, Wash., group this year also bought Gateway Center I and II -- an office and flex building totaling 145,000 square feet in Morrisville -- from Duke Realty for $17.3 million.

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Acquisition and Investment
Jun/15/2006

Petrus Partners and Crown West Realty Announce $125 Million Equity Fund

By Brian K. Miller
GlobeSt.com

SPOKANE, WA - Petrus Partners Ltd. of New York City and its locally based asset management subsidiary Crown West Realty LLC have completed fund raising for their second value-add discretionary fund since 2003. The fund closed with $125 million of equity that the Petrus-Crown West Group plans to parlay into at least $500 million of office and industrial properties over the next three years.

The fund will focus on acquiring mid-sized properties, one typically in need of redevelopment, repositioning or restructuring. It is looking for deals in the $10-million to $100-million range that require individual equity investments of $5 to $25 million.

As for geographic dispersion, the group seeks to assemble portfolios of properties within six to eight metropolitan markets, the strategy being economies of scale in both the acquisition and management of properties. The markets are Phoenix, Denver, Northern New Jersey, Raleigh-Durham, Atlanta, Houston and Dallas.

Petrus president Frank Walter tells GlobeSt.com the fund has closed on its first two acquisitions, the 110,000-sf SpectraSite Communications headquarters building at 400 Regency Forest Dr. in Carey, NC, and a controlling interest in the 300,000-sf, four-building headquarters of Unilever North America at 700 Slyvan Ave. in Englewood Cliffs, NJ. Both properties are occupied under short-term leases, Walter says.

The plan for the North Carolina property is to release the space and possibly develop an adjacent 11-acre parcel that was part of the deal. The New Jersey property, which was developed in 1969, could either be released or redeveloped, Walter says.

About two-thirds of the capital for both this fund and its original fund comes from retired Goldman Sachs executives, Walter says. The target IRR range for both funds is 13% to 18%, but expectations are higher now that the first third of the inaugural portfolio has been liquidated.

"Suffice to say we've been outperforming," Walter says. "It's been a good time to invest in real estate; everybody is doing well in this environment."

Petrus Partners is a private real estate investment firm formed in 1992 by its principals, who were formerly with the Real Estate and Investment Banking departments of Goldman, Sachs & Co. Crown West, organized in 1996, serves as asset manager for Petrus' investment partnerships, and its staff of 30 is actively engaged in development, leasing, property management, maintenance, finance and accounting.

The Petrus-Crown West Group owns and controls--directly, through discretionary investment funds and in multi-property joint ventures with St. Paul Travelers Cos., Inc.--a nationwide portfolio of office, flex and industrial properties totaling about six million sf.

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Acquisition and Investment
May/18/2006

Crown West Realty buys North Carolina complex

By Linn Parish
JOURNAL OF BUSINESS

Crown West Realty LLC, of Spokane Valley, has bought for $17.3 million a two-building office complex in Morrisville, N.C., near the Raleigh-Durham, N.C., metropolitan area.

The complex, called Gateway Centre I and II, was built in 2001 and includes a total of 145,000 square feet of office space. Crown West says the complex is located near an international airport and near the Research Triangle Park.

The occupancy rate at the complex was 86 percent in late April. Tenants there currently include Strayer University, Sears Roebuck & Co, and Genesys Telecommunications, among others.

Ed Gargiulo, Crown West's asset manager, says the purchase of Gateway Centre I and II is the company's first acquisition in the Raleigh-Durham market, which he says Crown West has eyed for some time. He says the company will continue to look for potential investment properties there and expects to complete additional transactions yet this year.

The acquisition is Crown West's second in North Carolina. In 2004, the company bought a 150,000-square-foot property in Charlotte.

Formed in 1996, Crown West owns and manages nearly 7 million square feet of leased office and industrial properties and is headquartered at the Spokane Business & Industrial Park, which it owns and manages. The company also has properties in Phoenix and Denver.

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Acquisition and Investment
Nov/03/2005

Crown West Sells 60,000-SF Facility, Plans Adjacent 60,000-SF Office-Condo

By Amy Wolff Sorter
Globe St.com

SCOTTSDALE, AZ – Six months after acquiring the 59,570-sf Giant Industries' corporate headquarters and the 8.4 acres on which it sits, Crown West Realty of Phoenix has sold the Class A building for $12.65 million to Chicago-based United Insurance Co. The company also plans to retain 4.4 acres of the adjacent undeveloped land for a 60,000-sf office condominium development.

According to Steven Brabant of CB Richard Ellis Co.'s Phoenix office, it had been Crown's intent, from the start, to sell the building after its acquisition in May 2005. "It has been offered as a single parcel, so the property had to be divided after Crown purchased it. As soon as Crown closed on the land, they turned around and offered the building for sale," says Brabant, who with CB Richard Ellis' Bob Young, Glenn Smigiel and Rich Abraham, represented the seller in the transaction.

The building, located at 23733 N. Scottsdale Rd., was developed by Giant Industries in 1989, and will be occupied by the company through 2014. Brabant tells GlobeSt.com that the building had been on the market for about 45 days at an ask of $13.08 million before United Insurance Co. of Chicago was identified as the buyer. United Insurance, represented by Mike Powers of Powers Trust Investments in Paradise Valley, came in with competitive pricing, beating out other offers. The buyer, as of now, has no plans to renovate the building.

At this time, Crown has not announced a ground-breaking date or construction costs for the office condominium project. "The plans are still in the preliminary phase right now, and they're into the city for approval," Brabant notes.

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Acquisition and Investment
Sep/29/2005

Crown West Acquires Eighth Phoenix Site

Spokane Valley company buys two-building, Class-A complex for $16.1 million

By Linn Parish
Spokane Journal of Business

Crown West Realty LLC, of Spokane Valley, has bought for $16.1 million a two-building office complex in Phoenix.

The complex, called Foothills Corporate Centre II, is the eighth property the Spokane company has acquired in the Phoenix area and gives it a total of 1.35 million square feet of commercial floor space in that market.

"The Phoenix market has been incredibly successful for our company," says Crown West President Richard Rollnick . "We look forward to expanding our portfolio over the coming months."

Foothills Corporate Centre II is located in the southeast valley area of Phoenix, along the Interstate 10 corridor, and includes two single-story office buildings with a total of about 145,000 square feet of Class-A floor space.

Crown West says the office complex was 83 percent occupied before the acquisition but it since has secured letters of intent from additional tenants to boost the complex's occupancy rate to 94 percent.

Current tenants include the corporate headquarters of audio-visual technologies provider ExhibitOne Corp. and the Phoenix operations of AT&T Corp. and telecommunications provider Global Crossing Ltd., Crown West says.

Crown West is headquartered at the Spokane Business & Industrial Park, in Spokane Valley, which it owns and manages, and has offices in New York and Phoenix.

In addition to its holdings in the Spokane and Phoenix areas, the company has properties in Denver and Charlotte, N.C.

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Acquisition and Investment
Sep/01/2005

Crown West Realty Acquires Foothills Corporate Centre II

PHOENIX – Crown West Realty, L.L.C. announced today the acquisition of Foothills Corporate Centre II in the Southeast Valley sub-market of Phoenix. The $16.1Million transaction, the eighth Phoenix area acquisition for Crown West Realty, brings their total market presence to 1.35 million square feet of office and commercial flex space.

Constructed in 2000, Foothills Corporate Centre II consists of two single-story Class “A” back office buildings totaling 144,910 square feet located at 14601 & 14605 South 5 0th Street in Phoenix . Foothills Corporate Centre is strategically located in the heart of the Interstate 10 (I-10) corridor, the most prestigious back-office core serving the Southeast Valley with excellent visibility and access. This strategic location offers its tenants immediate access to a vast array of amenities consisting of over two million square feet of retail space, restaurants and numerous hotel, medical, and health club facilities. Prior to the acquisition, Foothills Corporate Centre was 83% leased to tenants such as Global Crossing, AT&T, and ExhibitOne Corporation. At the time of closing Crown West had garnered letters of intent raising the occupancy to 94%.

Richard Rollnick , President of Crown West Realty, states “The Phoenix market has been incredibly successful for our company and we are thrilled to add this asset to our portfolio. We look forward to expanding our portfolio over the coming months.”

Crown West Realty, formed in 1996, is a privately-owned real estate investment, development and management firm with offices in Phoenix , New York City, and Spokane , Washington .

Parties interested in leasing information or acquisition criteria should contact Richard Rollnick at 602.288.3632.

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Acquisition and Investment
Sep/01/2005

Crown West goes into Denver Area

$12 Million transaction is Spokane company's first there; more buildings eyed

By Linn Parish
Spokane Journal of Business

Crown West Realty LLC, of Spokane Valley, has bought a $12 million office complex in the Denver area, its first acquisition in that market.

Richard Rollnick, president of Crown West, says the company currently is looking at additional properties in the Denver area and hopes to buy more real estate there.

"The diverse real estate opportunities and high-quality regional and national tenants in the Denver market are a nice fit for our investment goals, " Rollnick says.

The recently purchased property, called Corporate 25, consists of three inter-connected buildings with a total of 132,800 square feet of office space and is located in Centennial, Colorado, a suburb that's about 15 miles southeast of downtown Denver.

Built in 1981 and renovated in 2004, Corporate 25 is visible from Interstate 25 and is walking distance from a future light-rail station. Crown West says the complex currently has a 95% occupancy rate, and two construction companies are its main tenants.

The acquisition in the Denver market follows a number of purchases Crown West has made in the Phoenix area over the past three years. The company currently has more than 1.2 million square feet of office space in that growing Arizona market.

The company also owns about 5 million square feet of office and warehouse space in the Spokane area, most of which is in the Spokane Business &Industrial Park, in Spokane Valley.

Formed in 1996, Crown West is headquartered in Spokane Valley and has executive offices in Phoenix and New York.

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Acquisition and Investment
Aug/15/2005

Crown West Realty Acquires Corporate 25

By John Rebchook
Globe St.com

CENTENNIAL, CO – Crown West Realty, L.L.C., with executive offices in Phoenix and New York City, made its first commercial acquisition in the Denver area by paying $12 million for the Corporate 25 building. The property is in the Southgate Business Center at 7200 S. Alton Way, in this city along the southeast corridor.

The seller is DPC Development Co. Corporate 25, constructed in 1981 and completely renovated in 2004, consists of three inter-connected, multistory building with a total of 132,800 sf. It sits on a six-acre site with 410 feet of interstate frontage. It is minutes from the intersection of Interstate 25, C-470 and E-470 and is within walking distance of a future light-rail station to be built under the $4.7 billion FasTracks project. It also is close to the Park meadows mall. Currently, it is 99% occupied. Its two major anchor tenants are the South East Corridor Constructors and Kiewit Construction.

"The high-end amenities, quick access, and excellent visibility are in keeping with other quality offerings in our portfolio," says Richard Rollnick, president of Crown West, which has its administrative headquarters in Spokane, WA. "The diverse real estate opportunities and high-quality regional and national tenants in the Denver market are a nice fit for our investment goals."

Crown West plans to spend about $1.5 million in capital improvements throughout the next several years on Corporate 25. "Two of the three buildings in Corporate 256 complex have been elevated to class status with the renovations that took place in 2004," says vice president Rob Gragg. "One of our goals is to raise the third building to class status and continue with the successful leasing plan that is already in place."

Crown West, founded in 1996, is a privately owned real estate investment, development and management firm. In recent years, it bought more than 1.2 million sf of office space in the Phoenix area. It also owns about five million sf of office and industrial space in Spokane, WA.

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