January 8, 2007

Virtú Investments Acquires Oneida Tower

Denver, CO - Virtú Investments, LLC, a San Francisco based real estate investment management firm, acquired the Oneida Tower in Denver, CO in December of 2006. The 6-story, 65,117 square foot medical and conventional office building represents an excellent opportunity for Virtú to purchase a stabilized asset at less than 50% of replacement cost in a soft but improving market already experiencing rental growth at historical levels.

Oneida is strategically located in the Interstate 25/Midtown submarket of Denver, CO, which Virtú projects will continue its rapid improvement with strong appreciation expected from increases in rental rates. In conjunction with exploding new construction costs limiting new supply, Virtú believes the increasingly strong Denver economy has set the table for an office market that should see solid steady improvement over the next five years.

Virtú will execute a modest renovation to Oneida that will include partial upgrades to the roofing, air conditioning equipment, and other portions of the building over the next 3 to 5 years.

Virtú assumed an in-place non-recourse loan at an interest rate of 6.12%, expiring in 6 years. Virtú believes the loan's prepayment penalty will not be material in 3 to 5 years and the property should be sold unencumbered, allowing a new buyer to maximize potential returns while maintaining good leverage.

The Oneida Tower purchase was sourced by California based Commercial Acquisitions Director Will Fleming. For more information concerning commercial acquisitions throughout the U.S., contact Will Fleming at Virtú Commercial (415-398-4202). For information concerning multi-family acquisitions throughout the Midwestern United States, contact Marc Olivieri (480-773-1619). For information concerning other multi-family acquisition possibilities in the Western U.S., contact Stuart Bone (415-999-2088).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over fifty properties throughout the country. The company's current portfolio is valued at approximately $400 million and Virtú has approximately $120 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.

DOWNLOAD PDF
(Requires Adobe Acrobat Reader)