The behind-the-scenes trade had Realty America Group brokering the sale between Presidio Investments Ltd. of Dallas and Realty America Investment Management, a wholly owned subsidiary, and arranging the debt through Stamford, CT-based GE Capital's local office. With the deal done, the plans are flying for a headquarters relocation into 4809 Cole Ave., which will be tagged with the Realty America Group name in time for an October move-in.
Realty America Group is a 19-month-old firm founded by industry veterans, Webb Sowden and Jeffrey C. Berry, with Rives E. Castleman as managing partner for Realty America Investment Management. Their first acquisition was in March--the one-million-sf Lincoln Mall in Chicago. Sowden tells GlobeSt.com that they should corner one or two more deeds before the year ends as part of their "principal transactions" component for a three-pronged business model that also includes investment sales and mortgage banking. "We're looking," he says, "so bring us deals."
Phil Brosseau, an independent local broker, brought the 4809 Cole Ave. deal to Realty America Group after learning the deed could be pried from Presidio's portfolio. The 94%-leased office building, with 182 underground parking spaces, was constructed in 1984 and extensively renovated in 1999. It sits on about 1.2 acres near the border of Uptown and Highland Park, two of the ritziest neighborhoods in the city. Realty America Group plans to lease and manage the property, which will be 100% occupied with the firm's relocation from 5440 Harvest Hill Rd.
"It's true core real estate. It's not a value add," Sowden says, adding that the lease roll "is extremely stable." Toreador Resources Corp. is the lead tenant.
The office building's location near the principals' homes and the chance to own a piece of Uptown were deal-makers for a new player with an investment strategy that most often will be a two- to four-year hold. "The Cole acquisition is one we intend on owning for the next 20 years," Sowden emphasizes.
Starting in 2004, Realty America Group will swell the buying pool to five or six assets per year via various investment partnerships. The "comfort zone" is $7 million to $15 million for value-add product of all type.
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