GreatAmerica buys downtown C.R. building

CEDAR RAPIDS -- The lead investor of a partnership that bought the GreatAmerica Building in 2004 says there are no plans for a second tower now that GreatAmerica Financial Services Corp. has purchased the office building in downtown Cedar Rapids.

GreatAmerica Financial Services on Thursday announced that it had acquired the eight-story, glass-clad 156,000-square-foot from River Cedar Properties LLC. Financial terms of the transaction were not disclosed.

3001 Corp., a partnership of Ryan Companies US and 2001 Development Corp., developed the GreatAmerica Building in 1998. The building was sold in April 2004 for $16 million to Downtown Cedar Properties LLC, which included lead investor Michael Frantz of Network Growth Management in Northbrook, Ill., as well as GreatAmerica Chairman and CEO Tony Golobic and investors from Iowa City. 

At the time of the sale, Frantz said the partnership was considering developing a second office tower on a parking lot north of the GreatAmerica Building when a new federal courthouse was constructed. The $160 million courthouse is scheduled for occupancy in November 2012.

Frantz on Friday said the sale of the building to GreatAmerica ends plans for his investor group to build a second office tower.

"We don't own the north parking lot, which was part of the sale of the building to GreatAmerica," Frantz said. "I plan to remain involved in the real estate happenings in Cedar Rapids. There are several other things that we're looking at, but they haven't yet come to fruition."

Frantz said GreatAmerica's purchase of the office tower on the Cedar Rapids riverfront reinforces the company's commitment to the community and the downtown area after the June 2008 flood.

"I think getting GreatAmerica to commit to downtown Cedar Rapids is huge because at one time the company was considering all kinds of alternatives, including locations on the outskirts of the city," Frantz said. "I think it's a big boost for downtown because now that it owns the building, it won't be looking around."

GreatAmerica, which occupies nearly 50 percent of the building, was the driving force behind its construction in 1998 and became the lead tenant when it opened. Golobic said in a statement that the building purchase represents an investment in the company's future.

"The purchase of the GreatAmerica Building provides a solution to our long-term office space needs as our company continues with its record of 19 years of uninterrupted growth," Golobic said. "Our community has rewarded us with exceptional people who care greatly about each other, our company and our customers. "

GreatAmerica Financial Services was founded in 1992. With nearly $1.2 billion in assets, GreatAmerica is the largest private independent equipment finance company in the U.S.

GreatAmerica provides equipment financing and consulting services in all 50 states and a number of U.S. territories.  The company employs more than 340 at offices in Iowa, Minnesota, Missouri and Georgia.

Ryan Companies US will continue to manage and operate the building.