Invesco and Zeller Partner to Acquire Fifth Street Towers at Foreclosure Auction

ATLANTA, May 2, 2012 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today announces that its wholly-owned subsidiaries, Invesco Advisers, Inc. and WL Ross & Co. LLC, in partnership with Zeller Realty Corporation, have teamed up to acquire Fifth Street Towers, a two-tower class A office complex comprising 1.1 million square feet in downtown Minneapolis. The purchase was completed at the foreclosure auction held on Thursday morning, April 19, at the Hennepin County Sheriff's office. The price was $110.7 million, $1 more than the credit bid offered by the lender that was foreclosing on the property.

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The Fifth Street Towers were built in 1985 and 1989 by Opus Northwest. Located at 100 and 150 S. Fifth St., the complex is adjacent to a light rail transit station on South Fifth between Marquette Avenue and Nicollet Mall. Building amenities include below-grade parking, a Caribou Coffee shop, deli on the skyway level, and tenant fitness and conference centers. Currently, the office space is approximately 65 percent occupied.

The partnership is planning to reposition the property in the marketplace by providing the capital necessary for leasing. That, along with Zeller Realty's longstanding presence and expertise in Minneapolis, will allow Fifth Street Towers to achieve occupancy levels consistent with other class A office buildings located downtown. "Fifth Street Towers is an excellent addition to our portfolio in Minneapolis, where we've established a strong track record during the past 20 years," said James P. Gearen, president of Zeller Realty Corporation. "Most recently, we took LaSalle Plaza from 65 percent to 95 percent occupancy. We plan to replicate that success at Fifth Street Towers as the next chapter in our longtime relationship with Invesco."

The majority of the capital for the Fifth Street Towers investment was provided by Invesco Mortgage Recovery Fund, a fund co-managed by Invesco Real Estate, Invesco Fixed Income and WL Ross & Co. LLC. The residual was provided by the principals of Zeller Realty Corporation along with certain of its affiliates. Zeller Realty will ultimately assume both management and leasing responsibilities for the property.

"Invesco is thrilled to continue expanding its 16-year relationship with Zeller Realty and looks forward to harnessing the momentum as it relates to the execution of our business plan," said Steve Eckstein, Director of Acquisitions at Invesco Real Estate. Paul Zeller, chairman and chief executive officer of Zeller Realty Corporation, added, "We see this purchase as the continuation of a very well-aligned relationship between a leading investment manager and a strong Midwest owner/operator."

About Invesco:

Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ.

About Invesco Real Estate:

Established in 1983, Invesco Real Estate manages $48.9 billion of real estate investments, which includes approximately $29 billion in direct real estate portfolios and $19.8 billion in real estate securities (as of March 31, 2012). With more than 321 employees in 16 offices worldwide, the group focuses on top-down market and property type fundamentals combined with bottom-up local market intelligence.  Senior members of the management team have worked together for more than 23 years, contributing to the consistent implementation of Invesco's investment strategy and resulting performance.

About WL Ross & Co.:

WL Ross is an investment affiliate of Invesco.  Led by renowned investor Wilbur Ross, Jr., WL Ross' investment team has accomplished more than $300 billion of workouts around the world over the last 30 years.  WL Ross has sponsored and managed more than $10 billion of equity investments in distressed securities. Visit www.wlross.com.  

About Invesco Fixed Income:

Invesco Fixed Income manages more than $200 billion in fixed income assets.  With more than 150 investment professionals, the group offers a complete range of global and domestic asset classes, from cash to alternative fixed income, that seek to outperform through a variety of market conditions.  Its investment vehicle options include separate accounts, mutual funds, collective trust funds and exchange-traded funds.

About Zeller Realty Corporation:

Headquartered in Chicago, Zeller Realty Corporation brings a full spectrum of services to the commercial real estate industry, including investment acquisition, property management, marketing, construction and development. Zeller Realty provides investors with a distinctive blend of expertise utilizing a classic owner/operator vertically integrated model. The firm's portfolio includes holdings in the greater Chicago area, Minneapolis, Indianapolis and Wisconsin. Since its formation in 1988, Zeller Realty has completed more than $1.3 billion of acquisition and development activity. With 100 employees, the firm currently operates $1 billion of investment consisting of more than 6.6 million square feet of commercial space, including 4.4 million square feet – a value of $800 million – owned by the entities affiliated with Zeller Realty.

SOURCE Invesco