SALT LAKE CITY–(BUSINESS WIRE)–Bridge Investment Group Holdings Inc. (NYSE: BRDG) (“Bridge” or the “Company”) today announced that it has entered into a definitive agreement to form a joint venture with the diversified real estate investment business of Grosvenor (“Grosvenor”) to deploy $100 million of equity, with the option of follow-on investments, to purchase and develop best-in-class office assets that are positioned to capture an outsized share of rental and of absorption into their respective submarket due to their attractive location and ability to meet the needs of the modern tenant.
In the aftermath of the COVID-19 pandemic, Bridge believes that employee and employer demands continue to grow more demanding when it comes to office space. Market-leading amenities, eco-friendly initiatives, and a highly connected location are now tenant requirements, not tenant wishes. The joint venture seeks to tap into the “knowledge economy” by deploying capital in highly connected assets located in strategic locations that combine accommodating business environments, high quality of life and talent pools in growing rapidly with environmental sustainability.
“The market dislocation has created an opportunity for Bridge and Grosvenor to capitalize on underdeveloped office properties where the previous owner may not have the capital budget, time horizon or access to finance to transform strategically positioned office buildings in state-of-the-art assets Bridge’s integrated property management and leasing capabilities, combined with our focus on environmental sustainability, including our collaboration with Bridge’s solar team, enable us to create additional value from assets that we believe are well positioned but are not yet reaching their full potential,” said John Ward, chief investment officer for Bridge’s commercial office strategy.
Grosvenor’s Diversified Property Investments team strives to diversify the company’s global property portfolio by supporting third-party managers specializing in sectors and countries that complement the businesses of its regional operating companies, such as Grosvenor Property Americas and Grosvenor Property UK. Since their first investment in 2012, the team has committed over $800 million in equity across five continents with 19 specialist third-party management teams.
Andy Yates, Chief Investment Officer, Grosvenor Diversified Property Investments, added: “We are delighted to have entered into our second partnership with Bridge, which shares our ambition to provide exceptional workplaces for companies and employees focused on sustainability and The well-being.
“Looking forward, we strongly believe in the resilience of high-quality, well-located offices in growing cities and continue to seek similar opportunities with specialist managers as we grow Grosvenor’s diversified real estate investment business. and help diversify its global portfolio.”
The first asset acquired in the joint venture is the Camelback Center, located in the high-growth market of Phoenix, Arizona, in the prestigious Camelback Corridor. Camelback is a submarket recognized as a prime business location with dense, walkable amenities and easy access to in-demand labor and housing. From 2009 to 2021, more than $25.1 million has been invested to upgrade and modernize the Camelback Center, including a new cafe, outdoor patio with amenities, lobby improvements, common area improvements and toilets and new conference facilities. This nine story Class A building contains 236,553 square feet with covered parking and is currently 82% leased. In addition to the $25.1 million invested in the property since 2009, Bridge intends to drive value with ongoing capital improvements that enhance newly added amenities and improvements. Bridge also plans to integrate tenant-facing technology and ESG-focused initiatives, such as solar power.
About Bridge Investment Group
Bridge is a leading vertically integrated real estate investment manager, diversified across specialty asset classes, with approximately $42.0 billion in assets under management as of June 30, 2022. Bridge combines its operating platform nationwide with dedicated teams of investment professionals focused on select U.S. real estate. real estate verticals: residential leasing, offices, development, logistics real estate, net lease and mortgage backed by real estate.
About Grosvenor Group Limited
Grosvenor is an international developer, manager and investor improving properties and locations in many major cities around the world.
Grosvenor’s diversified real estate investment business co-invests with like-minded partners in third-party managed joint ventures to grow and diversify exposure to regions, sectors and types of investments that exceed as part of Grosvenor’s regional property operating companies.
Grosvenor Diversified Property Investments promotes sustainability within the built environment, improving the well-being of their clients and communities to ensure that their activities can make a positive difference to society. Since their first partnership in 2011, they have invested across Europe, North and South America, Sub-Saharan Africa and Australia.
Grosvenor Diversified Property Investments is a values-driven organization representing the Grosvenor family. Their work in real estate, alongside Grosvenor’s other businesses in food and agtech, rural estate management and support for philanthropic initiatives, share a common goal – to provide business benefits, social and environmental sustainability – meeting the needs of today while assuming responsibility for those of future generations.
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