Chicago Firm Launches Denver Crowdfunding Office Opp

DENVER—Locally based Origin Capital Partners has acquired Denver Corporate Center I for $23 million and an opportunity for the public to invest in this office building via its online crowdfunding platform, origincapitalpartners.com. The 11-story office building is located in the heart of the Denver Tech Center. Investments in the building, located at 4700 S. Syracuse St., begin at $10,000 for accredited investors. Accredited investors 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,” says 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.” 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, or cash, in the firm’s acquisitions to date. That philosophy has served Origin’s investors well as the firm’s second real estate fund, of which Denver Corporate Center is one of many assets, is on track to double investors’ money over its five- to seven-year investment horizon. 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, especially its ability to attract millennials; the expansion of light rail in the Denver tech corridor; and easy access to interstates and airports. “It’s extremely affordable to live here,” says Origin Capital Partners senior associate Jared Friedman . “A lot of the companies have followed the millennials and set up shop in Denver because one of the hardest things to do is attract good talent.” Founded in 2007, Origin Capital Partners 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. It has offices in Chicago, Charlotte and Texas.