CHICAGO, Feb. 4, 2016 /PRNewswire/ — Real estate investment firm Origin Capital Partners has launched its first Denver deal on its new crowdfunding platform: Denver Corporate Center I (DCC I), an 11-story office building in the Denver Tech Center.
Investments in the building begin at $10,000 for accredited investors, who must meet certain income or net worth requirements.
“Real estate crowdfunding is growing fast — it’s expected to raise more than $3 billion in 2016,” said Michael Episcope, cofounder of Origin, which has more than $500 million of real estate under management. “But 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.”
Added Origin cofounder David Scherer: “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.”
Scherer and Episcope personally have invested approximately one-third of all of the equity in the firm’s acquisitions to date.
That philosophy has served Origin’s investors well as its second real estate fund, of which DCC I is one of many assets, is on track to double investors’ money over its five- to seven-year horizon.
Denver Corporate Center
Origin Capital Partners and Hamilton-Titan have formed a joint venture to acquire DCC I for $23 million.
Hamilton-Titan has had an ownership interest in the building since 2006. The deal involves Origin buying out a previous investor.
Origin plans to improve the building, adding a fitness center, wifi café, locker and shower facilities, bike storage, etc. It is 83 percent leased.
Built in 1981 as part of a three-building complex for IBM, which remains a tenant, DCC I is Origin’s first investment in Denver. Among the reasons for making this investment is the city’s population growth; the expansion of light rail in the Denver tech corridor; and easy access to interstates and airports.
Origin Capital Partners
Founded in 2007, Origin Capital Partners focuses on acquiring apartment and office buildings in eight target markets. The firm is currently raising its third fund, with a $150 million target, of which Episcope and Scherer are investing $10 million.