Acquisition and Investment

Plaza Quebec Acquired by Crown West Realty for $10,250,000

CENTENNIAL, CO. - Plaza Quebec, located at 6025 South Quebec Street, was recently purchased by Crown West Realty for $10,250,000 from Principal Financial Group. This 94,400 square foot, three-story office building represents Crown West's fourth acquisition in the Denver area during 2007 and the sixth since 2005.

Plaza Quebec was constructed in 1984 and features covered parking and convenient access to Interstate 25. Crown West plans to upgrade the common areas of the property to raise Plaza Quebec to Class A status, consistent with other buildings in the Southeastern submarket. While the building's current occupancy is 93%, over 20,000 square feet of space will be available for lease during 2008 and 2009. Ryan Stout and Nate Bradley of Grubb & Ellis will spearhead the marketing and leasing efforts for the property.

"We are excited to add Plaza Quebec to our growing Colorado portfolio. The diverse real estate opportunities and high quality properties and tenants in this market fit nicely with our investment objectives, and we look forward to making additional acquisitions in the near future," says Kevin Richey, Denver office head for Crown West Realty. Investment criteria can be found at; potential acquisition candidates should be submitted to Kevin Richey or to Frank Walter, President of Petrus Partners (212-977-3708).

Crown West Realty is a full-service real estate investment, development, and management firm with offices in New York City, Phoenix, Arizona, Denver, Colorado and Spokane, Washington. Crown West was formed in 1996 by its parent, New York investment firm, Petrus Partners Ltd. The Petrus-Crown West group manages a $125 million discretionary equity investment fund and owns and manages eight million square feet of office and industrial properties nationwide.

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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

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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.

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Leasing and Development

Sheet-metal fabricator here adds space

Journal of Business
By Mike McLean

SPOKANE - Apex Industries, Inc., a Spokane Valley specialty sheet-metal fabricator, is expanding its facility at the Spokane Business & Industrial Park so it can boost production.
The company has leased an additional 12,000 square feet of space, where it plans to install new powder-coating equipment, adjacent to 30,000 square feet of space it already occupies in the same building, says Gordon Cudney, who co-owns the company with Matt Matthews.

Powder coating is a finishing process in which a powder form of dry paint is charged electrostatically and applied to metal parts, which then are placed in an oven where the powder is heat cured at 350 degrees to 400 degrees to form a durable finish, Cudney says.

The new equipment will include a five-stage wash line in which parts will be cleaned thoroughly, a pre-coating drying oven, a powder booth where parts will be coated, and a 644-square-foot curing oven. A conveyor will carry parts through the process, he adds.

Cudney declines to disclose the cost of the new equipment. The automated equipment, which will take a few months to install, is part of the company's plan to increase production, he says.

"It will allow us to increase the volume and size of the parts we coat," he says. "It will enable us to do large cabinetry."

Apex cuts, bends, forms, and welds sheet metal into precision parts for manufacturers, Cudney says. The parts include aircraft parts and enclosures for electronic and medical equipment.

Cudney says Apex employs 70 workers and expects the company's work force to grow over time, in part because of the expansion. He declines to disclose the company's annual revenues, although he says they've been growing.

Apex was founded in 1993 at its current location in the former Key Tronic Corp. industrial sheet metal shot.

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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.

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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.

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Leasing and Development

Packaging Maker to Expand Plant in Spokane Valley

Journal of Business

SPOKANE - Crown West Realty, LLC, of Spokane Valley, plans to add 9,000 square feet of warehouse space to Spokane Packaging's production facility in the Spokane Business & Industrial Park, at 3808 N. Sullivan, says Crown West Marketing Director Dean Stuart.

Crown West, which owns the park, agreed to add to Spokane Packaging's current 120,000-square-foot facility and to make a number of other tenant improvements as part of negotiations for a new, long-term lease Spokane Packaging has signed with Crown West, Stuart says.

Spokane Packaging manufactures corrugated cartons and foam packaging material. It employs about 70 people at its Spokane manufacturing facility.

Craig MacDonald, general manager of Spokane Packaging, declined to say how long the lease is for, but says he thinks the arrangement is a good one for both parties. He says the company will use the new space primarily for warehousing its raw stock.

Vandervert Construction Inc., of Spokane, has been hired to build the addition, which Stuart says will cost in the high six figures. He says the addition was designed collaboratively by Crown West, Spokane Packaging, and Vandervert Construction.

The city of Spokane Valley was expected to issue a building permit for the work last week. Once construction begins, the exterior walls will be up in about two months, Stuart says.

MacDonald says the company is pleased with the other improvements Crown West has made and plans to make, including converting the building's lighting from metal halide to energy-efficient fluorescent lighting, increasing the building's insulation, and adding to the company's parking area.

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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.

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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.

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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.

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