Alturas Real Estate Fund Acquires Office Building in East,ID
Written by Travis Barney | April 22, 2019
CHUBBUCK, ID - April 10th
Alturas Capital Partners is pleased to announce the addition of a 78,225 SF office building to the Alturas Real Estate Fund.
The LEED Certified Silver building, constructed in 2011, is well located just off I-86 at 4200 Hawthorne Road in Chubbuck, Idaho, a growing part of the fastest growing state in the country.
The building is fully occupied by Allstate Insurance Company and functions as a state of the art customer information center. Allstate considered several locations across the United States before choosing the Pocatello-Chubbuck area back in 2011. The company specifically chose the area because of its stable employee base, attractive cost of living and strong community. Since coming to Idaho, Allstate has been consistently ranked as one of the premier large employers in the state.
The Deal
The property is a Class-A building with a high-end interior build-out. We intend to add value to the asset by renewing the lease in the coming years. A key aspect of our due diligence was assessing the likelihood of Allstate renewing and identifying possible backup plans in the event that they do not renew.
We collaborated with our broker-partner, Don Zebe of Colliers International who is based in Pocatello, on the local market and identified possible future tenant options should they be needed. After learning of the Federal Bureau of Investigation’s expanding presence in Pocatello, as well as several other growing employers, we determined it is likely that there will be sufficient future demand for quality office space.
Most importantly, we spoke to representatives of Allstate, both local and corporate, to better understand their satisfaction with the building and plans for the foreseeable future. Following those discussions we determined it was an investment worth making.
Our Broker Partners
This project was an excellent example of the breadth of our broker network and how teamwork and collaboration can create value for everyone involved. The opportunity was originally identified through a broker-partner of ours based in Phoenix. He had a client in California that was interested in the asset but wanted a local partner. We had come to know this broker through our investments in Phoenix. From those interactions, he knew that we are a partnership-minded group and he made the connection to his client who is now also an investor in the property. We were then able to consult with Don and leverage his market and asset specific expertise to mitigate risk and ultimately become comfortable with the investment.
While it might seem counter-intuitive to involve another party in a transaction, when appropriate it can add immense value and significantly mitigate risk. Both broker-partners were collaborative problem solvers, and their abundance mentality coupled with their collective expertise ultimately created a very successful transaction for everyone involved.
As an Idaho-based company, we are excited to be growing our presence in our state.
If you know of a similar project that we should consider, please reach out to devinmorris@alturas.com or travisbarney@alturas.com. Additionally you can download our acquisition criteria here:
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Alturas Capital Partners is a Boise, Idaho based commercial real estate investment company. The company actively invests in office, industrial and retail properties, with a focus on the Inland Northwest and Intermountain West. Alturas owns and manages several properties in Idaho, Utah, Colorado, Washington, and Arizona. Since 2009, the firm has made investments valued at over $250 million and is actively seeking to acquire additional assets in the Western United States.