Broe Closes Second Transaction in its Equity Solutions Program; Recapitalizes Parkway Corporate Plaza in Roseville, CA
Broe’s Equity Solutions Program provides capital for constrained real estate ventures
Denver: Broe Real Estate Group (“Broe”), a leading investor and manager of commercial real estate assets across the United States affiliated with The Broe Group, has acquired through a managed affiliate a controlling interest in Parkway Corporate Plaza near Sacramento as part of a recapitalization transaction.
This transaction is part of Broe’s Equity Solution Program designed for capital constrained ventures, which has now completed two transactions with a gross value of more than $75 million. This Program was launched in 2015 to provide capital to troubled real estate ventures such as Tenant-In-Common (“TIC”) and other limited partnerships that require both capital and sponsorship to recapitalize and reposition the underlying real estate assets. Broe has earmarked at least $100 million of equity for the program, as well as sponsorship to facilitate financing, thereby creating $300-400 million of leveraged buying power.
“This transaction demonstrates the scale, capabilities and financial resources of The Broe Group and its managed affiliates, a multi-billion dollar asset-backed group that has a successful track record of operating and delivering solid returns,” said Claude Pumilia, COO and CFO of The Broe Group. “We are ready and able to find and close transactions that add to our already considerable real estate, transportation and energy growth businesses, as well as other venture investments.”
“As an experienced owner and operator of real estate assets, Broe and its affiliates are well equipped to handle both the complex nature of the recapitalization transaction and the implementation of the required repositioning strategies,” said Doug Wells, Chief Executive Officer at Broe Real Estate. ”We continue to actively pursue opportunities to participate in the recapitalization of TICs and other capital constrained ventures.”
Broe worked with Bluett & Associates, a Sacramento based commercial real estate services firm, who had been advising the TIC owners prior to the sale to facilitate the transaction, and who invested in a minority position in the transaction.
“This was a very complicated transaction with multiple stakeholders involved. Broe’s ability to navigate the TIC space and interact with special servicers was paramount, and is a true testament to Broe’s ability and solution oriented approach,” said Lori Bluett, Principal/Owner of Bluett & Associates.
Bluett & Associates has also been engaged to be the new property manager. Chris Lemmon, Senior Managing Director of Newmark Cornish & Carey, is the new landlord leasing representative.
Parkway Corporate Plaza is a 288,000 sf, institutional quality office park completed in 2001. The property is located at 1620-1680 E. Roseville Parkway in Roseville, CA, and is currently 85% leased to a number of blue-chip national and regional tenants including Kaiser Permanente, Sutter Health, Wells Fargo, California Department of Social Services and Act-On.
“Parkway Corporate Plaza is a great property in an established suburban office market, which combined with its credit tenant rent-roll represents an ideal investment for Broe,” said Jim Crawford, Vice President of Acquisitions at Broe Real Estate.
Broe is actively seeking new investment opportunities for its Equity Solutions Program. Principals with an asset that is in need of recapitalization should contact Jim Crawford, Vice President – Acquisitions at 303-398-0515 or firstname.lastname@example.org.
Note to Editors: Photos of Parkway Corporate Plaza are available.
About Broe Real Estate Group
Broe Real Estate Group acquires, develops and manages commercial real estate assets. Affiliated companies own and manage office and industrial properties, medical office buildings and multi-family communities across the country, including premier assets in many of the most desirable markets. For more than 40 years, the company has operated a comprehensive real estate platform to provide complete solutions to maximize return on investment. Additional information is available at www.broerealestate.com.
About The Broe Group
The Broe Group, based in Denver, Colorado, is a diversified privately-owned enterprise with a multi-billion asset base. The Broe Group and its affiliates employ more than 1,000 people directly and provide employment for countless others through its Great Western Industrial Park in Northern Colorado. The Broe Group and its affiliates own and/or manage commercial real estate and other businesses across North America. Its transportation affiliate, OmniTRAX, Inc., is a leading transportation services firm with railroad, port and terminal operations, and is the 2nd largest operator of short-line railroads in the U.S. Its energy affiliate, Great Western Oil & Gas Company, is a top 10 driller in Colorado and among the top 100 drillers in the U.S. The Broe Group has multiple other investment affiliates, including Three Leaf Ventures, which is focused on innovative healthcare technology start-ups. For more information, see www.broe.com.