Crown West Sets Up $100M Buying Pool
by Beverly Ford
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.