Alex. Brown Realty Enters into Joint Venture with Blackfire Real Estate Investors to Acquire Reno Office Building
Contact: Tom Burton
Baltimore, MD (October 10, 2007) - Alex. Brown Realty, Inc. (ABR), a national real estate investment company, has entered into a joint venture with Reno-based Blackfire Real Estate Investors (Blackfire) to acquire 639 Isbell Road, a 39,364-square foot office building in Reno, Nevada, for $4.1 million. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $1.3 million to the venture.
The four-story office building, which is part of the Reno central/airport office submarket, was constructed in 1997 by the seller and is located approximately one mile west of Interstate 395 and the Reno/Tahoe International Airport.
The building’s current vacancy rate exceeds those of both the general Reno office market and the central/airport office submarket. Blackfire and ABR believe this creates an opportunity.
“We expect to add value to this attractive, functional and centrally-located asset by implementing capital improvements and an aggressive leasing program,” commented Don Brenneman, ABR’s acquisition officer responsible for sourcing the deal. “By utilizing a more hands-on asset management style and offering tenants quality space for below market rates, we believe we can achieve stabilized occupancy and develop a competitive edge within the market.”
This marks ABR’s first investment in Reno and its first joint venture with Blackfire. “While the acquisition enhances our portfolio’s geographic diversification, it more importantly expands our network of joint venture partners,” stated John Prugh, ABR’s president and CEO. “Blackfire has an impressive knowledge of the Reno market and we look forward to forging a strong relationship with them.”
Alex. Brown Realty, Inc. (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Blackfire Real Estate Investors (Blackfire) is a private investment firm based in Reno, Nevada that focuses on value-added commercial real estate acquisitions in attractive western US markets. Founded in 2006, Blackfire’s team of principals brings a combined 100 years of experience in real estate investment, development, and management. www.blackfireinvestors.com