Acquisition and Investment
Acquisition and Investment
Aug/12/2005

Crown West Realty Completes Inaugural Purchase in Denver Market

DENVER – Crown West Realty, L.L.C. recently completed their first acquisition in the Denver metro area. Corporate 25 in Southeast Suburban Denver was purchased from DPC Development Company for $12 Million. Crown West has been on a buying spree in the Phoenix metro area over recent years, accumulating more than 1.2 million square feet of office space. In addition, Crown West Realty owns approximately 5 million square feet of office and industrial space in Spokane, Washington.

Constructed in 1981 and completely renovated in 2004, Corporate 25 consists of three interconnected multi-story buildings totaling 132,800 square feet. On over six acres of land and 410 feet of interstate frontage, this Class A office complex is located within the Southgate Business Center at 7200 South Alton Way , Centennial , Colorado . Minutes from the intersection of Highways I-25, C-470 and E-470, within walking distance of the future Southeast Corridor Light Rail Station, and in close proximity to the area’s most desirable residential neighborhoods and Park Meadows, makes Corporate 25 one of the most visible and accessible locations in the Southeast Suburban Office Submarket. Corporate 25 boasts a 95% occupancy rate with the two anchor tenants being South East Corridor Constructors and Kiewit Construction.

Richard Rollnick, President of Crown West Realty, states “We are thrilled to be adding Corporate 25 to our portfolio. The high-end amenities, quick access, and excellent visibility are in keeping with other quality offerings in our portfolio. The diverse real estate opportunities and high quality regional and national tenants in the Denver market are a nice fit for our investment goals, and Crown West looks forward to future acquisitions in the area.”

Crown West Realty plans to spend approximately $1.5 million in capital improvements over the next several years. “Two of the three buildings in the Corporate 25 complex have been elevated to Class A status with the renovations that took place in 2004. One of our goals is to raise the third building to Class A status and continue with the successful leasing plan that is already in place,” states Crown West Vice President, Rob Gragg.

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

Parties interested in additional information about Crown West Realty or this property should contact Rob Gragg at (509) 924-1720.

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Acquisition and Investment
May/31/2005

Crown West Realty Acquires Giant Corporate Headquarters

PHOENIX – Crown West Realty, L.L.C. recently completed the purchase of the Giant Industries Corporate Headquarters in Scottsdale. This represents the 7th acquisition for Crown West Realty in the Phoenix area over the last three years.

Constructed in 1989 in classic southwest architecture, the structure is a 2 story Class "A" office building located at 23733 North Scottsdale Road and is 100% occupied by Giant Industries. The 66,283 square foot building sits on 8.43 acres and was purchased from Diversified Partners for just under $13.8 million. Crown West intends to sell the Giant headquarters building immediately and use the excess land to develop a new high-end office condominium development.

Richard Rollnick, President of Crown West Realty, states "Crown West anticipates great success with this development. Facility solutions for smaller businesses have increased in demand in the Phoenix market. The office condominium is an innovative way for Crown West to meet that demand while still allowing businesses an ownership opportunity."

According to Crown West's Phoenix Vice President, Bob Olshan, Crown West Realty has teamed up with LGE Design Build to develop a high-end, three-building office condominium complex totaling approximately 60,000 square feet in classic southwest architecture with structured parking. Construction is scheduled to begin January of 2006.

Crown West Realty continues to look for investment opportunities in the Phoenix area which according to Bob Olshan is Crown West's ideal market. "The dynamic business environment and diverse real estate opportunities are well-suited to our investment goals. We will continue to aggressively seek additional properties and anticipate two or three more acquisitions to our portfolio in 2005."

Crown West Realty, formed in 1996, is a privately-owned real estate investment, development and management firm with executive offices in Phoenix and New York City and administrative headquarters in Spokane, Washington. Crown West owns and manages nearly seven million square feet of leased office and industrial properties along with a significant amount of prime undeveloped industrial land.

Parties interested in leasing information or acquisitions should contact Richard Rollnick or Bob Olshan at (602) 288-3836.

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Acquisition and Investment
Nov/24/2004

Crown West in growth mode

Spokane company gobbles up properties in Phoenix, plans new buildings here



By Linn Parish
Spokane Journal of Business



Crown West Realty LLC, the Spokane-based owner of the big Spokane Business & Industrial Park, is on an aggressive building-acquisition spree in Phoenix, having been involved with two recent purchases there worth more than $80 million, including one earlier this month.



Those acquisitions, made through a joint venture, bring to six the number of Phoenix-area properties—together worth more than $160 million—that Crown West has acquired in less than three years. And more activity in Phoenix likely is on the horizon, says Crown West President Richard Rollnick.



Meanwhile, Rollnick says, the company plans next year to build four new buildings, with a combined more than 90,000 square feet of floor space, in its sprawling business and industrial park at 3808 N. Sullivan here.



“We will continue to bring properties on line there,” Rollnick says. “We think the Spokane economic environment has improved markedly.”



Dean Stuart, Crown West’s director of marketing, says design work on the new structures will be completed yet this year. Weather permitting, Crown West will start construction in March and will complete them next July. He says cost estimates aren’t available yet.



In late 2001, when Crown West disclosed plans to build its newest structure, the company said it would cost $3.6 million, or $45 a square foot, to develop that 80,000-square-foot structure. At that rate, the company would spend more than $4 million to develop the four new structures.



Crown West currently is demolishing two older office buildings at the northern end of the park, two blocks east of the complex’s main northern entrance, to make way for construction of three of the planned new structures, each with 20,000 square feet of office and warehouse space.



Many of the buildings that comprise the 67-building, 545-acre industrial park were constructed as part of a U.S. Naval supply depot several decades ago.



The fourth planned new structure will be built along Euclid Avenue, at the south end of the park, Stuart says. That structure will include 33,000 square feet of office and warehouse space and will be located just west of the last structure Crown West built, an 80,000-square-foot building that outdoor electronics-cabinet maker Purcell Systems Inc. plans to move into next February. The new building will be similar in design to the building that Purcell has leased.

In Phoenix

In Phoenix, joint ventures that Crown West manages have bought two properties in the last four months.

Earlier this month, a joint venture between Crown West and St. Paul Properties, of St. Paul, acquired for about $32.5 million the nine-story, 235,000-square-foot Camelback Center, in a Phoenix financial district.

The property currently is only 40 percent occupied, and Crown West plans to make $8 million in upgrades to boost the office building’s appeal and attract more tenants, Rollnick says.

“Camelback Center has underperformed over the last three years due primarily to unfavorable market dynamics and poorly defined leasing strategies by previous ownership,” he says.

Crown West plans to market part of the building as smaller office suites of between 1,500 square feet and 5,000 square feet of office space each on lower floors, and large chunks of space on upper floors.

Current tenants in that building include offices of Principal Financial Group and CNA Insurance, among others.

That transaction follows one that another joint venture between Crown West and St. Paul Properties reported in August. That month, the company bought the Arizona Business Park, in northern Phoenix, for about $52 million. That property includes 10 buildings with a total of 440,000 square feet of floor space, and currently is fully occupied.

The headquarters for Bank One Corp. currently is located there, as are operations for Wells Fargo Bank, the Arizona Conservatory for the Arts and Academics, and a number of other tenants.

Rollnick says Crown West plans to continue buying properties in the Phoenix area as a key part of its growth strategy.

“This is a very dynamic market,” he says. “It has growth in just about every direction. You’ve got a huge labor pool, great infrastructure, and a lot of companies locating (in the Phoenix area).”

Formed in 1996, Crown West has offices in Phoenix and New York City in addition to its headquarters here. The company currently owns and manages about 7.2 million square feet of industrial and business properties along with 600 acres of land.

Of that, about 4.2 million square feet of floor space is in the Spokane Business & Industrial Park.

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Acquisition and Investment
Nov/08/2004

Crown West Realty Acquires Class A Office Building in Prestigious Location

PHOENIX - Crown West Realty has recently completed their second joint-venture acquisition with St. Paul Properties, a wholly-owned subsidiary of St. Paul Travelers. This purchase, Crown West's sixth in the Phoenix area, boosts their total portfolio size to approximately 1.2 million square feet in the Phoenix market.

The 235,000 square foot Class "A" office building was purchased from Artemis Fortis, LLC for just under $32.5 million. Constructed in 2001, Cambelback Center has nine stories of impressive Class "A" office space with four levels of subterranean parking, and is located in the heart of one of Phoenix's most prestigious office and condominium markets at 2355 East Camelback Road. Neighbors include The Biltmore Fashion Park, Camelback Esplanade, the Ritz Carlton, and historical Biltmore Estates. Camelback Center currently has a 40% occupancy rate which includes CNA Insurance, Principal Financial Group, and several other noteworthy tenants. "Crown West plans to add many new amenities including interior and exterior enhancements which will significantly improve its identity as a premiere office location," states Bob Olshan, Vice President of Crown West Realty.

Richard Rollnick, President of Crown West Realty remarks, "We're very fortunate to add such a well-located, high-quality, 24th and Camelback asset to our portfolio. Camelback Center has underperformed over the last three years due primarily to unfavorable market dynamics and poorly defined leasing strategies by previous ownership. Crown West will provide the market with premiere 1,500 to 5,000 square foot turn-key suites, as well as sizeable amounts of contiguous space, up to 60,000 square feet, on upper floors"

Crown West Realty continues to look for investment opportunities in the Phoenix area which according to Bob Olshan is Crown West's ideal market. "The dynamic business environment and diverse real estate opportunities are well-suited to our investment goals. We will continue to aggressively seek additional properties and hope to add four to six properties to our portfolio in 2005."

Crown West Realty, formed in 1996, is a privately-owned real estate investment, development and management firm with executive offices in Phoenix and New York City and administrative headquarters in Spokane, Washington. Crown West owns and manages nearly seven million square feet of leased office and industrial properties along with a significant amount of prime undeveloped industrial land.

Parties interested in leasing information or acquisitions should contact Richard Rollnick or Bob Olshan at (602) 288-3836.

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Acquisition and Investment
Aug/19/2004

Venture buys park in Arizona

Crown West, partner buy Phoenix office complex in $52 million transaction

By Linn Parish
JOURNAL OF BUSINESS

A joint venture involving Crown West Realty LLC, the Spokane-based real estate company that owns the large Spokane Business & Industrial Park, has bought for just under $52 million the Arizona Business Park, in Phoenix.

Located in northern Phoenix, the property includes 10 buildings with a total of 440,000 square feet of floor space. The acquisition is the largest that Crown West has been involved in to date, the company says.

The complex currently is fully occupied.

It’s home to the 106,000-square-foot corporate headquarters of Bank One Corp. and also accommodates operations for Wells Fargo Bank, the Arizona Conservatory for the Arts and Academics, and a number of other tenants, Crown West says.

The joint venture, called CWSP LLC, is owned by Crown West and St. Paul Properties, a wholly-owned subsidiary of St. Paul Travelers. Crown West is the joint venture’s managing partner.

The acquisition is Crown West’s fifth purchase in the Phoenix market in less than three years and brings the value of the company’s portfolio there to more than $130 million.

Crown West President Richard Rollnick says the business expansion and population increases in the Phoenix area make the Arizona city a desirable location for Crown West to buy more properties.

“It is our intent to acquire several more quality projects yet this year,” he says.

Formed in 1996, Crown West has offices in Phoenix and New York City in addition to its headquarters here. The company currently owns and manages nearly 7 million square feet of industrial and business properties along with 600 acres of industrial and commercial land.

The Spokane Business & Industrial Park, at 3808 N. Sullivan, includes 67 buildings on 545 acres of land with a total of 4.2 million square feet of floor space.

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Acquisition and Investment
Aug/04/2004

Crown West Realty Announces $52 Million Acquisition; Nearing 1 Million Square Feet in the Phoenix Market

PHOENIX - Announcing today its purchase of the Arizona Business Park, Crown West Realty's commercial holdings now near one million square feet in the greater Phoenix area. This purchase, Crown West's largest to date, is their fifth Phoenix-area acquisition in less than three years and brings the value of their Phoenix portfolio to over $130 million. In addition, this transaction marks Crown West's first acquisition with institutional joint-venture partner St. Paul Properties, a wholly-owned subsidiary of St. Paul Travelers.

Crown West purchased a 10-building portfolio totaling 440,000 square feet within the Arizona Business Park from Estes-Samuelson, LLC, for just under $52 Million. Arizona Business Park is located between Bell and Greenway Roads west of Interstate 17 in the Black Canyon / Deer Valley submarket. Construction on this Class A office and flex-office business park originally began in 1986 with the remainder of the buildings added periodically through 1999. The latest addition was the Class A, 106,000 square foot corporateheadquarter building currently leased by Bank One, which is, perhaps, the most prominent building in its submarket. Other tenants in the fully-leased Arizona Business Park portfolio include Wells Fargo, TriWest Healthcare, Hypercom Corporation, NCS Pearson and Arizona Conservatory for the Arts and Academics.

"Arizona Business Park is ideal for our portfolio; it's centrally located and has strong, highprofile tenants. The property's proximity to both I-17 and the Loop 101, as well as its access to the area's abundant amenities, housing and diverse labor pool, creates an appeal unlike that of business parks in other Phoenix submarkets. In addition to the satisfaction that comes with acquiring a portfolio of this quality, we've realized an opportunity to enter into a relationship with St. Paul Properties, an organization that has tremendous integrity and real estate investment sophistication," states Bob Olshan, Vice President of Crown West Realty.

Crown West began its buying spree in the Phoenix area in December of 2001 with the purchase of the Elliot Corporate Center. Other acquisitions over the past two and a half years include the Southbank Business Park, Lakeview Business Center, Broadway Court, and now, the Arizona Business Park. Richard Rollnick, President of Crown West explains, "The overall strength and diversity of the Phoenix market, fueled by business expansion and population increases, make Phoenix one of our prime markets for continued portfolio growth. It is our intent to acquire several more quality projects yet this year."

While Crown West has shown a knack for taking underperforming properties, implementing remedial strategies and dramatically improving value, the firm also pursues stabilized properties and is active in build-to-suit and speculative industrial and office projects.

Crown West Realty, formed in 1996, is a privately-owned real estate investment, development and management firm with administrative headquarters in Spokane, Wash., and executive offices in Phoenix and New York City. Crown West owns and manages nearly seven million square feet of leased industrial and business properties along with 600 acres of zoned industrial and commercial land.

Parties interested in leasing information or acquisitions should contact Richard Rollnick or Bob Olshan at (602) 288-3836.

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Acquisition and Investment
Jul/19/2004

JV's $52M Scores Office Portfolio Win

By Lee Simmons
GlobeSt.com

PHOENIX-Crown West Realty LLC and St. Paul Properties have purchased 11 buildings in the Arizona Business Park for $52 million. The deal adds 440,000 sf of fully occupied office and flex-office space to the new joint venture's portfolio.

"The opportunity in this deal was the ability to buy the buildings at their current rents and know that we're going to end up with good leasing opportunities in two of the nicest buildings in this area in a short period of time," Richard Rollnick, president of the Spokane, WA-based Crown West Realty, tells GlobeSt.com.

The 50-50 joint venture acquired the buildings from Estes Samuelson LLC of Phoenix, which developed them between 1987 and 2000. Compass Bank of Birmingham, AL, provided $17 million in acquisition funds at a Libor-based rate and the balance funded through both partners' equity contributions, according to Rollnick. In addition, two loan assumptions were required before the deal could close--expanding escrow to 11 months.

"You had multiple loans with different lenders. There were some prepayment considerations and then you had a couple of tenants that were in process," says Chris Toci, a director at Cushman & Wakefield of Arizona Inc.'s Phoenix office. A 45-day marketing period generated 17 offers on the 11-building portfolio. There were five finalists on the short list. Toci says Crown West's market credibility and joint equity with St. Paul Properties of St. Paul helped the partners rise to the top.

The 38-acre acquisition, with a central address of 15810 N. 28th Ave., encompasses about half of the Arizona Business Park. The portfolio consists of a 49,920-sf structure occupied by NCS Pearson Inc.; a 24,985-sf building leased to Wells Fargo; a 23,772-sf building held by Hypercom Corp.; a 106,397-sf building filled by Bank One; a 66,693-sf building rented to Triwest Healthcare; and a 46,817-sf building holding Choice Education, a charter school. A separate four-building complex has Triwest Healthcare in two buildings with 43,868 sf and Wells Fargo in the other two, which total 75,263 sf.

Rollnick says rents average $1 per sf, but he predicts the rate will rise as tenants' leases expire in the next few years. The leases in place have expirations from 2006 through 2014. He confides Bank One intends to terminate its lease in 2007 and Triwest Healthcare plans to vacate its buildings for Wells Fargo's in 2006 when the bank moves to Deer Valley.

"We are what you would call opportunistic value-added investors," Rollnick says. "We see an opportunity to have a class A building at a good value and be able within the next three years to find a new tenant for the building and lease it. We will do that for the Triwest building as well. This is a little bit like a maze. We're moving a whole bunch of buildings around."

The latest deal brings Crown West Realty's Phoenix office portfolio to about one million sf, making it one of the metro's largest office players since came to town 2.5 years ago. The investor's total three-state portfolio tallies some 7.5 million sf, including industrial and office properties in Phoenix, Washington state and North Carolina.

The C&W team of Toci, Brian Ackerman, Mike Beall, Tim Whitermore and Bob Lundstedt (now with Colliers International's Phoenix office) negotiated for the seller. Crown West and St. Paul Properties were self represented in the deal.

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Acquisition and Investment
Oct/22/2003

EaglePicher Subsidiary Agrees to $15M Lease

by Beverly Ford
GlobeSt.com

PHOENIX-EaglePicher Technologies has some sky-high aspirations. The privately held advanced-technology firm, which makes batteries for the space station and defense department, has taken on a new challenge--filling a 103,600-sf building in Southbank Business Park with its corporate headquarters.

The company, a subsidiary of EaglePicher Inc., leased the fully furnished 3402 E. University Dr. building from Spokane, WA-based Crown West Realty LLC for the next 13 years at a cost of about $15 million. Renovations, including the construction of a 5,000-sf addition and the upgrading of its manufacturing space, will be done before move-in, which is set for early next year, Bob Olshan, Crown West's asset manager for the Southwest tells GlobeSt.com. Crown West will assist in the renovations with the installation of 100 covered and lighted parking canopies and upgraded power.

For Crown West, placing the firm into the office/warehouse facility was a real coup. The privately owned real estate investment, development and management company purchased the property from Citizens Bank in January when the lender foreclosed. The hope was to have it fully leased within two years, Olshan says. Instead, the property, which sat vacant since its former tenant and owner, Motion Systems, moved out more than a year ago, was leased up in 10 months.

"To have completed the purchase transaction and have the building fully leased to a high-profile organization like EaglePicher in a span of 10 months has exceeded our expectations," Olshan says, noting that the building's two prior owners had never been able to fully lease the recently built structure despite the Southbank building's state-of-the-art telecommunications and climate-controlled systems along with a prime Valley location.

Dave Johnson and Bob Kling, both with Lee & Associates Arizona, helped Crown West in the lease negotiations with the tenant, which has locations in 11 states and Mexico, the United Kingdom and Germany. EaglePicher was assisted by Bob Kawa of Kawa & Associates of Phoenix.

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Acquisition and Investment
Oct/14/2003

Crown West Sets Up $100M Buying Pool

by Beverly Ford
GlobeSt.com

PHOENIX-Commercial turn-around experts Crown West Realty LLC has arranged for $100 million in investment capital to acquire undervalued and distressed properties in the city and other areas of the Southwest.

"Our strategy is to reposition properties that are under-performing and not fully realizing their revenue potential," Bob Olshan, the company's asset manager for the Southwest, tells GlobeSt.com. Petrus Investors 2003 LP has committed $25 million to the $100-million buying pool with the balance coming from supplemental bank facilities.

Olshan says the group currently is conducting due diligence on two metro-area properties: Metro Business Park in Peoria and Lakeview Business Center in Phoenix. The capital infusion will help fund the acquisitions. He says both are multi-tenant flex properties, a product type that Crown West does not yet have in its local portfolio. Both properties, which are about 85% leased, are expected to close escrow later this year, he confides.

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Acquisition and Investment
Apr/23/2003

Crown West Realty Continues Phoenix Area Growth

www.highprofileaz.com

Phoenix, AZ,-Crown West Realty LLC recently continued its growth in Phoenix with its third major office complex acquisition. The Spokane, WA based investment firm's buying spree started in 2001 with the 227,000 sf Elliot Corporate Center in south Tempe. The latest acquisitions include the $10 million December 2002 purchase of 103,000 sf at Southbank Business Park and February 2003 $2.1 million purchase of 38,000 sf at 3230 E. Broadway.

"Phoenix was identified as a wonderful growth opportunity for the company," said Scott Brown, Crown West's asset manager. "Crown West seeks challenging assets that afford us an opportunity for upside potential."

Crown West conducts extensive renovations on the properties it acquires and are optimistic about the prospects they represent. The company's latest acquisition is comprised of three two-story structures with a small stream and cascading waterfall in the interior courtyard. The firm will invest approximately $300,000 in remodeling the building before leasing it to smaller office users. The remodel includes exterior paint, signs and other office improvements. The target is to have the building fully leased within 18 months.

Southbank Business park property, at 3402 E. University Dr., consisted of fully furnished office space along with warehouse, production and showroom space. The Elliott Corporate Center building has been thoroughly remodeled and is fully leased.

Crown West will acquire another three or four properties in the Phoenix market in 2003. Location and condition of properties are, of course, critical to their investment choices, and the company has historically favored well positioned, newer facilities. In addition to Phoenix, Crown West has assets in Spokane, WA and Charlotte, NC.

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