REAL ESTATE INVESTMENT

Cresset Real Estate Partners and Clarius Partners Close on Land Purchase for 1.7 Million Square Foot Logistics Development in Glendale, Arizona

Cresset Partners | August 12, 2021

Cresset Estate Partnersesset Real and Clarius Partners have closed on the land acquisition for 303 Crossroads, a 1,758,410 square foot logistics development in Glendale, Arizona.

The project will consist of two buildings to be built across two phases on land fronting Loop 303 and Northern Parkway in Glendale. Building one will be 1,023,610 square feet and is scheduled to be completed in 2022. Building two will be 734,800 square feet and is slated for completion in 2023. Groundbreaking is scheduled for October 2021.
The 98-acre 303 Crossroads project consists of two buildings totaling 1,758,410 square feet.

Both buildings will be built to stringent modern design standards and will target e-commerce, distribution, and warehousing users. Features of the buildings will include cross-dock configuration, 40-foot clear height, above-market parking ratios, and direct frontage on both Loop 303 and Northern Parkway.

"Cresset Real Estate Partners is pleased to partner with Clarius Partners on this project for a multitude of reasons. The Phoenix industrial market has continued to see high levels of growth, with more than 6 million square feet of absorption through the second quarter of 2021. The bulk of this activity has occurred in the Southwest Valley. This market's population growth and the relatively low existing inventory of modern big-box industrial buildings has created a significant opportunity for developments of this type," said Dominic DeRose, Director for Cresset Real Estate Partners.

"Clarius Partners is excited to announce the 303 Crossroads Industrial Project in conjunction with Cresset Real Estate Partners," said Mark Balcius, Senior Vice President for Clarius Partners. "This project will enable the partnership to expand its footprint of Class A - Industrial space in the rapidly growing West Phoenix/Loop 303 market. The project team of Butler Design Group, Hunter Engineering, Layton Construction and representation by CBRE, along with the support of the City of Glendale and Epcor, have advanced the project rapidly to enable late 2021 construction commencement."

About Cresset Partners
Cresset Partners is a private investment firm focused on providing its investors with direct access to investment opportunities in private companies, real estate, and sponsor products. We focus on building outstanding, lasting partnerships by investing permanent capital, resources, and expertise to create sustainable value. We believe that long-term investing creates better alignment and reduces risk and inefficiencies, leading to better outcomes for all shareholders.

About Clarius Partners
Clarius Partners, L.L.C. is a full-service real estate investment and development company whose mission is to provide customized service to a select group of clients and partners. Clarius is headquartered in Chicago, IL, with approximately 10 million square feet of industrial, office, and medical projects totaling over $1.3 billion in various stages of development in Illinois, Arizona, California, Pennsylvania, Utah, North Carolina, and South Carolina. Through its deep industry knowledge and extensive network, the Clarius team aspires to deliver exceptional development results with quality, clarity, and integrity.

Cresset refers to Cresset Capital Management and all of its subsidiaries and affiliates. Cresset Asset Management, LLC provides investment advisory, family office, and other services to individuals, families, and institutional clients. Cresset Partners, LLC provides investment advisory services strictly to investment vehicles investing in private equity, real estate and other investment opportunities. Cresset Asset Management, LLC, and Cresset Partners, LLC are SEC registered investment advisors.

Spotlight

Commercial properties offer a regular stream of income at a higher rate than most other asset classes. With a regular renewal of leases and fewer vacancies, CRE assures a regular flow of income. Investment in CRE properties in active markets is likely to produce higher yields than stocks.


Other News
REAL ESTATE INVESTMENT

ECI Group Acquires Channel District Site in Tampa for Development of 351-Unit Apartment Community

ECI Group | December 16, 2021

ECI Group and K.D. Keller Development have closed on a two-acre site in Tampa's vibrant Channel District in Tampa, FL, with plans to start construction in January 2022 on Parc Madison, a 351-unit, eight-story Class A apartment community with 6,571 square feet of ground floor retail. The project equity was funded through a joint venture of ECI, Tampa-based K.D. Keller Development, and Scottsdale, AZ-based Kandle Investments, with construction financing provided by Wells Fargo Bank, N.A. Construction is expected to be completed in the third quarter of 2023. Parc Madison will be located at the east end of the downtown Tampa block bounded by E. Twiggs Street, E. Madison Street, and Channelside Drive, adjacent to the new City of Tampa Madison Street Park. Constructed using efficient tunnel form concrete technology, the building will have a parking deck, skyline views from upper floors, an expansive rooftop pool and gym. The 6,571 square feet of ground floor retail is targeted towards a restaurant and/or coffee shop user. "The ECI team is excited to be underway with the Parc Madison, destined to be a signature property in downtown Tampa, featuring sleek, modern architecture and sunlit, spacious apartments, We are proud to continue to contribute to the rapid growth of the Channel District, bringing in more residents to enjoy the new retailers, grocery stores, restaurants and gathering places." -James Baugnon, President and CIO at ECI. Chip Sykes and Drew Jennewein of Jones Lang LaSalle Capital Markets assisted in the formation of the project joint venture. About ECI Group For more than 50 years, ECI Group has been one of the most highly regarded, privately owned real estate organizations in the United States. The firm is fully integrated, with development, construction, and management groups that have garnered national recognition for innovation and performance in the multifamily industry. With a portfolio of more than 7,900 units either existing or under construction located throughout the Southeast, ECI is strategically positioned to continue to be a leader in the multifamily industry. For more information, visit www.ecigroups.com. About K.D. Keller K.D. Keller's mission is to help landowners realize the full income potential of their properties while retaining full ownership. We transform obsolete or underutilized structures into the highest and best use for the property, for now and for the future.

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REAL ESTATE INVESTMENT

Triumph Properties Closes on Land Acquisition for 287 Multi-Family Development Deal in North Phoenix AZ

Triumph Properties | April 08, 2022

Triumph Properties announced it has closed an $82.5mm total capitalization of a 287-unit multi-family development project, Aileron, located in the booming North Phoenix submarket. The land parcel of 9.87 acres was purchased from Moderne Capital Partners, who will be Triumph's development partner on the deal. Triumph believes that Aileron's location will benefit from the continued growth of the north Phoenix market including notable job announcements like the Taiwan Semiconductor Manufacturing Company (TSMC), who announced plans to open a 1,129 acre $12 billion factory. Aileron is 1 mile south of the Deer Valley Airport where Cox communications and Honeywell Aerospace have strong employment centers. Other notable nearby employers are Discover, Safeway Corporate and Albertsons. Aileron will feature a mix of studios, one-, and two-bedroom units averaging 842 square fee. Unit finishes will include vinyl plank and carpet flooring, quartz countertops, tile backsplashes, wood cabinets, stainless steel appliances, in unit laundry, air conditioning and more. Amenities will include, pool, spa, clubhouse, fitness center, BBQ area, secured access and package center. "We are excited about this project and our partnership with Moderne. Each of Moderne's Partners brings tremendous experience and value to the table. We believe this will be the first of many projects together", said Steve Feder, Principal at Triumph Properties. We are looking to make more strategic partnerships like we did on Aileron in the Southeast and Southwest as we expand our development pipeline. Suburban, garden-style apartments, surface parked or wrap product are what we are focused on." Blake Brewer, Director of Acquisitions at Triumph Properties AboutTriumph Properties Triumph Properties is a national full service commercial real estate investment, management, and development firm based out of Southern California. Triumph leverages decades of expertise and an innovative approach to maximize value for residents and investors.

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INVESTMENTS

RUBICON POINT PARTNERS ACQUIRES HISTORIC "CROWN JEWEL OF OAKLAND" ROTUNDA BUILDING

Rubicon Point Partners | January 25, 2022

Rubicon Point Partners ("Rubicon"), a woman and minority-owned real estate company specializing in transformative investments, announced its recent acquisition of the iconic Rotunda Building in downtown Oakland from Rotunda Partners II, who have owned the building since 1999 and will continue as a minority owner. Featuring some of the Bay Area's best examples of Beaux-Arts architecture, the building also features a four-story parking garage. Rubicon plans to roll out its "Work From Here" program and put in place a sustainability plan to reduce the building's carbon footprint. The "Work From Here" program focuses on creating workspaces that are amenitized in ways not available at home, emphasizing employee health and wellness while enabling employers to better accommodate a hybrid workforce. Rubicon plans to introduce a state-of-the-art fitness facility, upgraded common areas, hybrid digital conferencing and collaboration infrastructure. We are honored and humbled to be the caretakers of the historic and beautiful Rotunda. We look forward to implementing an improvement plan that will honor its history but also modernize it to allow for a new generation of companies to thrive, We are especially excited to work with key stakeholders to activate Frank Ogawa Plaza and integrate it with the building's indoor space. This indoor-outdoor environment is rare in urban settings like downtown Oakland." Ani Vartanian, Rubicon's co-managing partner. Situated at Frank Ogawa Plaza across from City Hall in Downtown Oakland, the property was built in 1912 and originally designed by Bay Area architect Charles Dickey, who fitted a dramatic elliptical glass dome in the interior atrium. At the time, the dome was said to be the largest of its kind. He was also known for developing a diverse architectural style, fusing elements of Hawaiian and Beaux-Arts design. Dickey's most recognizable California creations, the Oakland Rotunda Building and Claremont Hotel, proudly sit on the National Register of Historic Places. In the early 2000s, prior ownership of the Rotunda reinforced its structure with a full seismic retrofit following the 1989 Loma Prieta Earthquake, transforming it into one of the safest historic spaces in Downtown Oakland. We selected Rubicon because of their track record in transforming historic assets and are confident that they will be great custodians of this Oakland jewel." Phil Tagami, one of the managing partners at Rotunda Partners II. Rubicon purchased the eight-story property through the Rubicon First Ascent Fund, seeing an opportunity to simultaneously preserve an Oakland treasure while reducing its environmental impact. The firm has been busily transforming similar historic spaces from California to Washington for the past decade such as 450 Shotwell, the Storek building, 1125 Mission Street and Masin Block. Rubicon plans to continue offering the building to be used as an event space for galas and events that benefit the City and are essential to the success of the people of Oakland. Being good environmental stewards is important to us at Rubicon. In addition to modernizing the Rotunda, we plan to reduce the building's carbon footprint in the process. We hope the Rotunda Building will serve as a blueprint for how historic spaces can remain sustainable for future generations, Our playbook at the Rotunda Building involves investments in the building systems and the deployment of our technology stack, including machine learning utility management systems. All of these serve to increase efficiency while reducing the building's carbon footprint." Razmig Boladian, Rubicon's co-managing partner. About Rubicon Point Partners When workspaces call for out-of-the-box innovations, Rubicon delivers creative, environmentally driven, and socially responsible solutions. Since its inception, the San Francisco-based woman and minority-owned investment firm has transformed over 2 million square feet of space to sustainably house companies of all sizes, making way for future generations of talented leaders, thinkers, and creators.

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REAL ESTATE INVESTMENT

Cadre Hires Dustin Cohn as CMO to Boost Awareness of Commercial Real Estate Among Main Street Investors

Cadre | April 21, 2022

Cadre, the technology-driven commercial real estate investment platform, announced the hire of Dustin Cohn as Chief Marketing Officer to continue driving awareness around the accessibility and advantages of real estate investing. With decades of experience across brand development and performance marketing, Cohn will report to Cadre Founder and CEO Ryan Williams to support Cadre's mission of democratizing commercial real estate (CRE) investing, a traditionally exclusive asset class. According to a recent survey, 73% of consumers earning $75k - $500k are interested in CRE, but only 14% are invested in it.1 This may be due to a number of misconceptions about the asset class. Many consumers assume CRE is exclusive to the ultra wealthy, institutions, or requires at least $100k to invest. There is also a knowledge gap about the benefits CRE can provide – by and large, consumers are worried about inflation (86%), they want to diversify their portfolios (68%), but many do not recognize CRE's potential for inflation-hedging or historically high risk-adjusted returns.2 Cadre, now with the help of Cohn, is working to dispel misconceptions by providing and promoting unprecedented access to CRE. At Cadre, we are keen to educate individuals about the financial opportunities the commercial real estate market can provide. I founded Cadre to serve those typically excluded from accessing high-quality assets and opportunities to build wealth. Dustin's proven experience reaching individuals and raising awareness is unparalleled, and I am eager to work with him as we bring the transparency, accessibility and liquidity of our platform to more people." Ryan Williams, Cadre Founder and CEO Cohn joins Cadre following its most successful quarter to date, as platform users rose by more than ~20% and the firm raised nearly as much capital from individual investors as it had throughout all of 2021. Cohn's experience helping consumers access wealth-building tools will help build off that momentum. Prior to Cadre, Cohn served as Head of Brand and Marketing for Marcus and Wealth Management at Goldman Sachs, leading the development of the Marcus brand—notably inventing its name—and launching a number of firsts for the storied firm, including its first-ever consumer advertising campaign and athlete sponsorship. He also led brand and marketing efforts for the firm's Asset Management division. "Cadre's platform already disrupted the status quo by giving individuals access to institutional-quality real estate," stated Cohn. "Commercial real estate is no longer just for the uber wealthy and institutions. For many consumers, the remaining barrier is simply awareness. A modern wealth-building tool is already available to individual investors right now, a few clicks away. I am honored to join the firm's mission to not only deliver this access, but also educate more investors that it exists." Cohn also has experience leading marketing for a number of global consumer brands. Prior to joining Goldman Sachs, he served as CMO for Jockey International, CMO for Optimer Brands, and spent several years at PepsiCo as Marketing Director for Gatorade and Propel. About Cadre Cadre is a groundbreaking technology-driven commercial real estate investment platform that offers both institutional and individual investors the opportunity to access expertly curated real estate assets with lower minimums, low fees, and unprecedented potential for liquidity. Via its data-driven and transparent approach, Cadre opens participation in a historically opaque and illiquid asset class. Along with its traditional investment offerings, Cadre also provides investors with the ability to pursue highly vetted commercial real estate opportunities and the opportunity to seek liquidity through its proprietary secondary market, a unique offering within the industry. Since Cadre's founding, Cadre has closed more than $4.5 billion in real estate transactions across 23 U.S. markets and delivered an 18+% average net IRR across all completed property sales,3 resulting in the return of more than $300 million of capital to Cadre investors to date.

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Spotlight

Commercial properties offer a regular stream of income at a higher rate than most other asset classes. With a regular renewal of leases and fewer vacancies, CRE assures a regular flow of income. Investment in CRE properties in active markets is likely to produce higher yields than stocks.

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