News
Leasing and Development
Dec/11/2003

Concrete Works to move production plant to SBIP

Statue maker plans to hire 15 people for operation, which is to open in March

By Linn Parish
Spokane Journal of Business

Concrete Works Statuary Inc., of Spokane Valley, has leased space in the Spokane Business & Industrial Park and plans to move its manufacturing operation there from the Airway Heights Correctional Center.

The 8-year-old company expects to hire about 15 people to work in the plant, which is scheduled to open in the 16,000-square-foot leased space next March, says Laura Grenz, who owns Concrete Works with her husband, Curtiss Grenz.

Concrete Works makes a variety of concrete statues and other decorative concrete products typically used as yard decorations, Grenz says. The company has four year-round employees.

Currently, the company contracts with the Washington state Department of Corrections to have its manufacturing operation inside the West Plains prison facility, with prisoners working as its laborers.

Grenz says the company decided to move out of the prison so that it can have more control over its production facility.

“It’s too hard to work inside the jail,” she says. “The cement trucks were unable to get into the facility when there was a lockdown. The workers obviously couldn’t leave to help unload trucks at our Valley store.”

The company paid wages for prison workers that are comparable to market-rate wages, Grenz says.

Concrete Works has two retail stores, one at 205 S. Pines in Spokane Valley and one in the Tri-Cities, that are open April through October.

The company also operates temporary stores for the holiday season in the Spokane Valley Mall and NorthTown Mall.

Grenz says the company eventually would like to open a retail store that is open year-round, but doesn’t have any firm plans to do so yet.

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Leasing and Development
Nov/21/2003

Kelly-Goodwin moving to business park

Business
Spokesman Review

Kelly-Goodwin Co., which wholesales hardwood flooring, is moving to the Spokane Business Park on Euclid Avenue.

The company currently occupies 12,000 square feet at 10020 E. Montgomery. The new location at 16311 E. Euclid is about 17,000 square feet.

"We just needed a bigger space," said company controller Darryl Engel, who added that the move won't take place until late spring. The Montgomery location will remain open until then, Engel said.

The company has been in Spokane for 10 years and has a total of seven locations in the Northwest. As leases come up, Engel said, the company is looking for buildings that provide space for showrooms.

Dean Stuart of Crown West Realty LLC and Mark Lucas of Kiemle and Hagood Co. handled the transaction.

Copyright (c) 2003 The Spokesman-Review

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Leasing and Development
Nov/06/2003

Two new businesses have moved into the Spokane Business and Industrial Park

From staff and wire reports
Spokesman Review

Two new businesses have moved into the Spokane Business and Industrial Park.

Summit Forest Products leased 6,730 square feet for a lumber remanufacturing company, and The Coffee Warehouse Inc. leased 6,000 square feet for a coffee supply and distribution business.

The Coffee Warehouse will start delivery next week. Owner Jennifer Smith said she will offer all supplies including gourmet coffee, syrups, paper products and equipment. "Anything that a coffee house would need,'' Smith said.

The company already has 50 accounts, but sees a potential for 300 and offers free delivery to Spokane, Coeur d'Alene and Post Falls. The Coffee Warehouse also offers customers free barista training and product demonstrations, Smith said.

Crown West Realty LLC negotiated both transactions.

Copyright (c) 2003 The Spokesman-Review

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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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Leasing and Development
Oct/02/2003

Cabinet maker Huntwood adds space in Spokane Industrial Park

John Stucke
Staff writer, Spokesman Review

Huntwood Industries Inc. will lease another 60,000 square feet of building space in the Spokane Industrial Park.

The rapidly growing cabinet maker already leases about 260,000 square feet in the park along Sullivan Road.

Dean Stuart of Crown West Realty declined to discuss the terms of the lease. He did say the industrial park prefers five-year leases.

Huntwood has been searching for a suitable location to expand its operations. With 500 employees, it is among the largest manufacturers in the region and a leading employer within the city of Spokane Valley.

The company claims it is the largest cabinet maker in the Western United States.

Last month, a property firm controlled by Huntwood owner Tim Hunt purchased 67 acres of land from Agilent Technologies in Liberty Lake. The purchase has fueled speculation that Huntwood has settled on the area for a new complex.

Hunt has been unavailable for comment on the land transactions.

Within the industrial park, Huntwood operates a manufacturing center, a showroom and has offices in four separate buildings.

The newly leased space in the industrial park is in an adjacent building and suitable for whatever Huntwood needs, Stuart said.

"We're working hard to keep them here," Stuart said. "Of course we'd like to sign them to a long-term lease."

Agilent still owns about 90 acres in Liberty Lake.

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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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Acquisition and Investment
Mar/02/2003

Crown West Closes $55M Refinance of Spokane Industrial Park

By Brian K. Miller - Globe St. com

SPOKANE, WA-Crown West Realty LLC has closed on a $55-million refinancing of Spokane Industrial Park, the largest contiguous business park in a multi-state region.

The long-term loan, from JP Morgan Fleming Asset Management’s Real Estate Debt Group, pays off the seller financing Crown West Realty utilized when it acquired the 4.2-million-sf park seven years ago from publicly-traded Avista, previously known as Washington Water Power.

Crown West President Richard Rollnick tells GlobeSt.com the loan was low compared to the value of the park and carries a rate that is below 6%. Rollnick says the refinance allowed "a return of capital to investors," but did not specify the amount. The loan was sourced by David Stinebaugh and Greg Wellington of L.J. Melody's Seattle office and Rocco Mandala from the firm's Phoenix office.

Spokane Industrial Park was originally developed by the military as a navy depot in the 1940s. It was converted to a business park in the 1960s. Rollnick says that when Crown West acquired the behemoth, it invested millions of dollars in infrastructure improvements and enhancing the buildings' amenities and aesthetics before building out another 400,000 sf to keep up with demand.

The park now boasts 120 tenants including several tenants leasing more than 100,000 sf and another handful leasing more than 200,000 sf. Major tenants of the assets covered in the loan include Boeing Commercial Airplane, Boise Cascade, Weyerhaeuser Company, IEDS, Huntwood Industries, Columbia Lighting and CXT Corp. Other major tenants include GE, Honeywell, 3M, AT&T and Agilent.

Crown West Realty, L.L.C. owns and manages more than 6 million sf of office, commercial and industrial real estate in Spokane, Wash., Phoenix, Ariz., and Charlotte, N.C. and is a fully integrated commercial real estate investment, development and management company. It is an operating subsidiary of the New York-based investment company, Petrus Partners Ltd.

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Acquisition and Investment
Feb/24/2003

Crown West's Third Deal Ticketed at $2.1M

By Beverly Ford - Globe St. com

PHOENIX-Crown West Realty LLC is ramping up its Phoenix operation with the $2.1-million acquisition of a second office complex in five weeks.

The purchase of the recently constructed 38,000-sf office complex at 3230 E. Broadway marks the Spokane, WA-based investment firm's third major buy in the Phoenix market since 2001 when it acquired the 227,000-sf Elliot Corporate Center.

And, the company's buying spree is far from over, Scott Brown, the firm's asset manger tells GlobeSt.com. The company's goal is to acquire three more Phoenix area buildings in 2003. "Our intention is to expand fairly rapidly," Brown said of the company's strategy. "Phoenix is a great market. We're very optimistic about it."

The company's latest acquisition, purchased just five weeks after it dropped $10 million on a 103,000-sf corporate headquarters facility at the prestigious Southbank Business Park, is comprised of three two-story structures with an interior atrium courtyard accented by a small stream and cascading waterfall. Brown said the firm anticipates spending $300,000 to remodel the interior and exterior before putting the office space up for lease to smaller office users. Currently, about 7,000 sf is occupied by General Fiber Communications Inc.

The remodeling will include new exterior paint, signs and other office improvements that should allow the new owners to have the building fully leased in 18 months, Brown says. He's pegging the rental rate for the remodeled full-service facility to be $17.50 per sf.

Purchased from GFCI-AZ LLC, the building caught the buyer's attention because it can accommodate smaller office users at a prime location near Interstate 10 and Sky Harbor International Airport. "Both the building's location and its design are exceptional," Brown said. "And it's in an area where there isn't a great deal of small existing office space."

Tracy Cartledge and Robert Buckley, both with Insignia/ESG, represented the seller in the transaction. Crown West Realty was self-represented.

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Acquisition and Investment
Jan/20/2003

Crown West Takes Crown Jewel in $10M Deal

By Beverly Ford - Globe St. com

PHOENIX-Crown West Realty LLC has acquired a Crown Jewel in a bid to
further expand its presence in the Phoenix market, spending $10 million
for a 103,000-sf corporate headquarters facility at the prestigious
Southbank Business Park.

Located at 3402 E. University Dr. near Interstate 10 and Sky Harbor
International Airport, the building is designed with fully furnished
office space with state-of-the-art telecommunications and climate
control systems along with warehouse, production and showroom space. "It
was a high-quality asset in a fabulous location at a great price," Crown
West Realty president Richard Rollnick tells GlobeSt.com.

Rollnick said the investment group purchased the class A, two-story
office building on a speculative basis from Citizens Bank in Detroit,
which had foreclosed on the property when prior owner Motion Systems
went into bankruptcy.

Crown West Realty LLC, which opened its Southwest office about 18 months
ago, owns three class A office properties, totaling 380,000 sf, in the
Phoenix market. The group also expects to close on a North Scottsdale
property in the next month, Rollnick said.

"We think Phoenix is a tremendous market," Rollnick said of the firm's
recent push into the area. "We think it's a deep market which affords
investors and developers like ourselves with a broad base of
opportunities."

Rollnick said the investment firm's goal this year is to secure at least
one major tenant for portfolio addition, a feat he said can be easily
achieved given the building's prime location, superior quality and the
Southbank development's low vacancy rate.

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