Regions Midwest
July 1, 2008
By: Tonie Auer, Southwest Correspondent
Seattle-based Schnitzer West has ventured into the Denver market with its first acquisition there, a pair of offices that Schnitzer has bought in a joint venture with ING Clarion Lion Value Fund.
The properties were purchased from Crescent Real Estate Equities L.P. for an undisclosed amount.
Schnitzer West plans to implement a capital program with the closure of the sale, addressing any deferred maintenance issues and bringing systems into updated code compliance and restore the buildings to Class A office space. The firm also plans to establish a Denver office with five staff members to implement the capital improvement program as well as offer third-party management services to other firms in the Denver market.
In the deal, Schnitzer acquired 44 Cook (pictured) and 55 Madison in the Cherry Creek neighborhood. The two structures, totaling 260,000 square feet, are more than 90 percent leased and are two of the tallest buildings in the area. Many of the offices feature unobstructed views of the Front Range Rocky Mountains.
The company’s entry into Denver followed months of detailed market and sub-area research and due diligence, Kellanne Henry, investment director with Schnitzer West, told CPN. “We did extensive studies of the Denver market and Cherry Creek came out as one of our top [sub]markets,” Henry added. “It has lots of barriers to entry and is very supply constrained. It has also tended to outperform other submarkets in Denver in both occupancy and rates. It tends to attract a unique tenant base from the surrounding areas and that is one of the reasons we felt this building fit us well," Henry said. "The range of tenant sizes from fairly small on up is good and it provides the best parking in the market. Additionally, the access in and out of the properties is very good.”
Schnitzer West worked with Eric Tupler, vice chairman, and Kirk Danley, vice president of CB Richard Ellis/Melody to secure the debt financing for the purchase of the Cherry Creek buildings. Mary Sullivan, Ron Urgitus and Tim Swan, executive vice presidents with the CB Richard Ellis' investment team, represented the sellers.
Schnitzer West was previously known was Schnitzer Northwest until the firm changed its name about a year ago to signal its intentions to expand beyond its Northwest roots. Since its founding in 1997, the firm has developed approximately 2.5 million square feet of office, flex and bio-tech space and luxury multi-family apartments in the Seattle and Portland markets. The firm also has extensive industrial and retail holdings.
ING Clarion and its affiliates manage almost $50 billion in assets in the private equity, public equity and public debt sectors of the real estate markets. The firm is the U.S. investment management arm of ING Real Estate, a global real estate company active in investment management, development and finance.
CB Richard Ellis--Melody, the real estate investment banking division of CB Richard Ellis Inc., originates a broad range of debt and equity capital. In 2007 the firm generated 425 billion in real estate financing transactions and currently maintains a servicing portfolio of more than 9,000 loans totaling approximately $111 billion.
By: Tonie Auer, Southwest Correspondent
Seattle-based Schnitzer West has ventured into the Denver market with its first acquisition there, a pair of offices that Schnitzer has bought in a joint venture with ING Clarion Lion Value Fund.
The properties were purchased from Crescent Real Estate Equities L.P. for an undisclosed amount.
Schnitzer West plans to implement a capital program with the closure of the sale, addressing any deferred maintenance issues and bringing systems into updated code compliance and restore the buildings to Class A office space. The firm also plans to establish a Denver office with five staff members to implement the capital improvement program as well as offer third-party management services to other firms in the Denver market.
In the deal, Schnitzer acquired 44 Cook (pictured) and 55 Madison in the Cherry Creek neighborhood. The two structures, totaling 260,000 square feet, are more than 90 percent leased and are two of the tallest buildings in the area. Many of the offices feature unobstructed views of the Front Range Rocky Mountains.
The company’s entry into Denver followed months of detailed market and sub-area research and due diligence, Kellanne Henry, investment director with Schnitzer West, told CPN. “We did extensive studies of the Denver market and Cherry Creek came out as one of our top [sub]markets,” Henry added. “It has lots of barriers to entry and is very supply constrained. It has also tended to outperform other submarkets in Denver in both occupancy and rates. It tends to attract a unique tenant base from the surrounding areas and that is one of the reasons we felt this building fit us well," Henry said. "The range of tenant sizes from fairly small on up is good and it provides the best parking in the market. Additionally, the access in and out of the properties is very good.”
Schnitzer West worked with Eric Tupler, vice chairman, and Kirk Danley, vice president of CB Richard Ellis/Melody to secure the debt financing for the purchase of the Cherry Creek buildings. Mary Sullivan, Ron Urgitus and Tim Swan, executive vice presidents with the CB Richard Ellis' investment team, represented the sellers.
Schnitzer West was previously known was Schnitzer Northwest until the firm changed its name about a year ago to signal its intentions to expand beyond its Northwest roots. Since its founding in 1997, the firm has developed approximately 2.5 million square feet of office, flex and bio-tech space and luxury multi-family apartments in the Seattle and Portland markets. The firm also has extensive industrial and retail holdings.
ING Clarion and its affiliates manage almost $50 billion in assets in the private equity, public equity and public debt sectors of the real estate markets. The firm is the U.S. investment management arm of ING Real Estate, a global real estate company active in investment management, development and finance.
CB Richard Ellis--Melody, the real estate investment banking division of CB Richard Ellis Inc., originates a broad range of debt and equity capital. In 2007 the firm generated 425 billion in real estate financing transactions and currently maintains a servicing portfolio of more than 9,000 loans totaling approximately $111 billion.
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