Petrus Partners was founded in 1992 by Fred Krimendahl (deceased), Frank Walter and Wes Huang with the objective of investing the partners’ capital along with that of other high-net worth individuals who had also previously been executives with Goldman, Sachs & Co.

In 1996, Petrus acquired The Spokane Business & Industrial Park (“The Park”) from the local electric utility, Avista Corp. At that time, The Park totaled 80 buildings encompassing 4 million square feet on one square mile, with 15 miles of roads, 10 miles of rail and a water utility. The Park was originally a WWII Navy Supply Center and for 30 years Avista used the decommissioned city of warehouses as an economic development tool; the utility subsidized power-consuming businesses with cut-rate rents. Amidst a proposed corporate merger, Petrus acquired the utility’s unregulated properties, including The (then-dilapidated) Park, in a new operating company, Crown West Realty.

Over the ensuing 20 years, Petrus-Crown West modernized The Park, including the construction of 800,000 square feet of state-of-the-art distribution, service retail, and lodging buildings. The Park now totals 4.5 million square feet of new or renovated buildings and is home to approximately 180 companies employing roughly 5,000 people.

Crown West Realty’s team of 47 employees has grown its Net Operating Income from $3 million to $18 million and has become expert at redeveloping and repositioning properties. Crown West provides asset and construction management, as well as accounting services in support of all Petrus investments and joint ventures.

In 2001, Petrus-Crown West made its first acquisitions in Phoenix in the aftermath of the collapse of many NASDAQ technology companies and the “9/11” financial downturn. Based on its success in investing in distressed properties, Petrus-Crown West subsequently raised its first discretionary opportunity fund, which was invested in 15 properties in the “Tech-Wreck” markets of Phoenix, Denver and Raleigh-Durham.

Beginning in 2004, Petrus-Crown West formed joint ventures with Travelers Insurance, and later Nationwide Insurance and True North Management Group, to acquire and redevelop or reposition properties in value-added investments. Since that time, Petrus and these institutions have funded ventures involving 12 office properties totaling 1.6 million square feet worth $300 million in value.

Petrus Investors 2005, LP, represented the firm’s second discretionary value-added investment fund, with total equity capital commitments of $125 million. Petrus 2005 acquired 22 properties in need of restructuring, redevelopment or repositioning and located in Phoenix, Denver, Raleigh-Durham, Greensboro, Atlanta and in suburban Maryland and New Jersey. These value-added investments involved office, flex and industrial properties as well as commercial and residential land projects.

To capitalize on distressed investment opportunities following the collapse of the housing bubble, Petrus Partners formed the Crown West Land Group and raised in 2009, 2013, and 2015 Petrus Land Investors I, LP, Petrus Land Investors II, LP, and Petrus Land Investors III, LP. With $125 million of discretionary investment capital, Petrus' Land Funds acquired from banks, the FDIC, and other motivated sellers,11,000 single-family residential lots, primarily foreclosed properties or "REO", located in Phoenix, Tucson, Las Vegas, and Reno.

In 2014, Petrus Partners formed Crown West Farm Group and Petrus Farmland Investors I, LP, and has since invested $60 million in the acquisition of over 7,000 acres of dryland and irrigated farmland leased to tenant farmers. In 2015, Petrus formed Crown Columbia Water Resources LLC, a government-approved water bank active in the Pacific Northwest.

To this day, approximately half of the firm’s investment capital is from retired partners of Goldman, Sachs & Co.

 

 

 

 

Copyright © 2016 Petrus Partners Ltd.

 
Building
Copyright © 2016 Petrus Partners Ltd.

© Copyright 2006 Petrus Partners. All rights reserved.