Origin Capital Partners Launches Crowdfunding Deal in Denver
- Feb 04, 2016
By Adriana Pop, Associate Editor
Denver–In a $23 million deal, Origin Capital Partners has acquired a majority interest in an 11-story office building in Denver, with plans to offer shares of the property via its online crowdfunding platform.
Accredited investors who meet certain income or net worth requirements will be eligible to invest in the Denver Corporate Center I building in amounts beginning at $10,000. According to the owners, this deal is an opportunity for people who would not otherwise have the ability to own high-quality commercial real estate.
The property, which is located at 4700 S. Syracuse St. in Denver, was 83 percent occupied at the time of publication. Origin is planning to renovate the facility, which is part of a three-building complex developed in 1981 for IBM. Plans now call for a new fitness center, WiFi café and bike storage.
“Real estate crowdfunding is growing fast — it’s expected to raise more than $3 billion in 2016,” stated Michael Episcope, cofounder of Origin, which has more than $500 million of real estate under management. “But we’re different in an important way. We’re not marketing other people’s deals. Our firm owns Denver Corporate Center and will own it for the same period as our investors.”
“This is about opening up high-quality, privately held real estate to investors who previously could not access firms such as ours. The minimum investments were – and at most firms still are – too high for people to reach,” added Origin cofounder David Scherer.
Origin purchased its share in the Denver Corporate Center I from an investor that had owned the property in a partnership with Hamilton-Titan, a joint venture between Chicago-based Hamilton Partners and Titan Investments. Hamilton-Titan currently owns a minority interest in the building, along with Origin.
The acquisition is one of the latest transactions that highlight Denver’s booming office market. According to Yardi Matrix data, the metro’s economy, driven by a strong tech sector, continues to soar. Sustained by Millennials, Denver’s population and employment are also rising.
Founded in 2007, Origin Capital Partners is a real estate investment firm that focuses on acquiring apartment and office buildings in eight target markets, including Denver. The firm is currently raising its third fund, with a $150 million target, of which Episcope and Scherer are investing $10 million. The company is based in Chicago and also has offices in Charlotte and Texas.
Image courtesy of Origin Capital Partners