UPDATE
$200M Merger Deal Not Driven by Timing

An environment where there is
such a strong focus on results,
deal flow and operational
efficiencies often leads to
increased merger activity,
says Callahan.
SEATTLE-As GlobeSt.com previously reported, the Joshua Green Corp., a Seattle-based investment firm, recently made an investment in locally based real estate operating company Urban Renaissance Group. The transaction includes JGC’s existing $150-million portfolio, which now becomes part of URG, merging JGC’s real estate assets into URG’s operating platform. JGC has also committed up to $50 million in additional investment for URG’s first fund, Urban Renaissance Investment Partners LLC.
GlobeSt.com chatted with URG CEO Patrick Callahan on the deal and he notes that the deal wasn’t driven by timing. “It was more a matter of building a long-term company with a long-term view.”
Callahan tells GlobeSt.com that URG will continue to invest in valued-added office and retail properties “in top central business districts and well-located suburban markets.” Geographically, he says, URG will focus on Seattle, with an emphasis on expanding its portfolio in Portland first, then Denver and ultimately San Francisco “when the timing is right.”
This deal wasn’t driven by timing, Callahan explains to GlobeSt.com. “It was more a matter of building a long-term company with a long-term view.”
URG and Joshua Green have had the opportunity to work together since late 2007—first when URG was hired to evaluate and oversee the renovation of the 100-year-old Joshua Green Building in downtown Seattle and again in 2012 when URG managed the underwriting and purchase of Plaza 600 on behalf of Joshua Green, he explains. “These interactions reinforced Joshua Green’s decision to advance a more holistic approach to real estate and investing and ultimately led to this transaction,” he tells GlobeSt.com.
One of the things that attracted McCammon to URG was its existing management team. “In particular, the background of the principals and key employees, the firm’s track record since formation, and their success at previous companies were all factors in our decision to invest in this operating company,” he says.
Callahan tells GlobeSt.com that the business of real estate has become increasingly competitive. “An environment where there is such a strong focus on results, deal flow and operational efficiencies often leads to increased merger activity.”
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