American Ventures planning $1B Class A spending spree.

CORAL GABLES, FLA: American Ventures Realty Investors, one of the largest commercial real estate investment managers in the U.S., said it anticipates acquiring $500 million to $1 billion in commercial real estate in 2007.

The company said it plans to acquire Class A office properties via acquisitions in the private market or public real estate investment trusts.

"We see increased opportunity to generate strong returns for our investors through an acquisition-focused strategy," said Philip Blumberg, president and CEO of American Ventures. "We have accumulated strong cash stockpiles to fuel acquisitions in 2007. That strategy may include bids on public REITs, as well as acquisitions of strategic individual property assets."

Blumberg cited the interest rate environment, strong commercial tenant demand and reduced prices in certain markets he cites as "gateway cities," due to their attractive economic, trade or financial bases.

American Ventures' current holdings include commercial properties in the Southeast and Southwest United States.

Its investment portfolio comprises commercial real estate, development land, cash and other assets. Investors include high net worth individuals, foundations, pension funds and banks.

In a bid to selectively boost its holdings in 2006, American Ventures was a final bidder on two major commercial property sales. It led an investment group that bid $1.2 billion on the landmark News Corp. headquarters building in New York City. The company was also a finalist in the pursuit of the Bank One Center in Dallas with a bid of more than $200 million.

In March 2006, American Ventures set a Florida Class A office building record transaction price (price paid per square foot) with its sale of Miami's 1401 Brickell Office Tower for $61 million, or some $325 per net rentable square foot. The acquirer was Testa Inmuebles en Renta, S.A., a major Spanish public real estate company.

American Ventures later in 2006 sold its 220,000 s/f office tower (Alhambra Circle) in Coral Gables, Fla., for $60 million, or $272 per square foot. The acquirer in that transaction was RREEF, the U.S.-based real estate investment manager and a division of Deutsche Asset Management. During the year, American Ventures also sold land adjacent to its Three River Office Tower in Houston to facilitate expansion of the Omni Houston Hotel.

Founded by Blumberg in 1979, American Ventures specializes in U.S. investment management. Blumberg Office is the American Ventures company and brand focused on investment ownership and management of commercial office properties.

"We are looking for properties in major markets suitable for our management brand, which stands for a five-star quality of service and physical environment for our tenants," said Johnny Winton, president of asset management at Blumberg Office. "Buying, transforming, and managing office buildings to this standard have played a major role in driving our investment funds' returns, historically among the highest in the U.S."