Baltimore, MD – A joint venture formed by Alex. Brown Realty (ABR) and CIP Real Estate acquired the Center Tower Riverside, a 73,000 sf Class A office building located in downtown Riverside, California. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $5.2 million in the venture.
Center Tower Riverside was built in 1987 and is comprised of five stories of office space attached to a four story parking garage. At acquisition, the property was 72% occupied by seven tenants. With the addition of two new tenants shortly after closing, occupancy was increased to 80%. The rent roll offers a diverse tenant base of both private and public entities covering various industries with a staggered rollover.
There is an immediate potential for enhancing the asset’s marketability by improving the common areas. “The prior owner spent very little on capital improvements and all of the common areas appear dated,” said Tom Burton, ABR’s chief investment officer. “With modest capital improvements and available funding for leasing costs and tenant improvements, Center Tower Riverside will be a viable option for any potential office tenant considering downtown Riverside.”
“CIP has extensive ownership experience in office product within the Inland Empire and we are pleased to be partnering with them once again,” commented John Prugh, president and CEO of ABR. The transaction represents the 16th transaction between an ABR-sponsored investment program and CIP Real Estate since 1998.
Alex. Brown Realty (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
CIP Real Estate is a full-service real estate investment and management company focused on acquiring, developing, repositioning and managing office, business and industrial parks. Founded in 1995, CIP owns and manages more than 5 million square feet of real estate throughout California, Nevada and North Carolina. www.ciprealestate.com