Gloom and doom. Doom and gloom. Those words were interchangeable and prevalent during the last few years in both economic and office real estate market analysis. But in the words of 1960s legendary rock group The Buffalo Springfield, ”Something’s happening here.” That something is very good. While there will be setbacks, and it may take a year, it will be something very good. And that something is without the freewheeling lending market of the 1980s, without the sometimes illogical boom of the 1990s, and without the volatility of the past decade. The Milwaukee office market is absorbing space, creating excitement with a vibrant downtown (especially in housing and dining) and ready for a positive rebirth. Now let me tell you what didn’t happen in 2011, and what won’t happen in 2012. And then allow me to tell you why 2013 will be spectacular. The total inventory of the Milwaukee office market is nearly 28.2 million square feet. With approximately 6.4 million square feet available and nearly 5.8 million square feet vacant, the direct vacancy rate for the market as a whole is 19.7 percent. But in the financial area east of the River downtown market, the vacancy rate is only …
MINNEAPOLIS — A partnership between Invesco and Zeller Realty Group has acquired the Fifth Street Towers in Minneapolis at auction for $110 million. The purchase of the towers, which span 1.1 million square feet, was completed at a foreclosure auction held last month at the Hennepin County Sheriff's office. The sale price was $1 more than the credit bid offered by the lender foreclosing the property. Located at 100 and 150 S. Fifth St., the property is about 65 percent occupied. Zeller will manage the buildings.
OLMSTED FALLS, OHIO — Vitamix has broken ground on a $10 million, 51,000-square-foot expansion of its world headquarters in Olmsted Falls, a suburb of Cleveland. The manufacturer of blending equipment has doubled its workforce during the last few years to nearly 500 people. Vitamix expects to add 100 workers this year. The company has also increased international exports by 80 percent in the past three years.
DES MOINES, Iowa — Metonic Real Estate Services, an entity formed by the Silverman family of Omaha, has purchased West Glen Town Center in Des Moines for $34.5 million. The property was in receivership at the time of sale with two different receivers. The mixed-use development was built in two phases in 2006 and 2008. The center includes 418,000 square feet of retail as well as office space and 123 apartments. Ember Grummons of Investors Realty represented the buyer. The Silverman family owns mutlifamily properties and other developments in the Midwest. Through Metonic, the family plans to attract additional retailers to the site, which is 60 percent occupied in the commercial and office spaces. World Group Commercial Real Estate will manage the center.
SALINA, KAN. — Red Mortgage Capital has arranged an $11.8 million Fannie Mae loan for Eaglecrest Retirement Community in Salina. The 102-unit community includes 62 independent living and 40 assisted living units. Midwest Health, which owns 43 senior living communities throughout the Midwest, acquired Eaglecrest last month.
LIVONIA, MICH. — Longacre LLC has purchased a 14,600-square-foot industrial building in Livonia, a Detroit suburb, for $435,000. Located at 11965 Brookfield, the facility was built in 1973 and remodeled in 2000. The building includes 1,800 square feet of office space. Tony Avendt of Grubb & Ellis represented the seller, First Industrial LP, in the transaction.
BLUE SPRINGS, MO. — Passco Cos. has completed its $4.3 million acquisition of Shoppes at Coronado Place I, a 14,534-square-foot strip center in Blue Springs, two miles from downtown Kansas City. The center was built in 2008 and was fully occupied at the time of sale. Tenants include Adams Dairy Bank, AT&T Wireless and Vintage Stock. Keoni Fursse of Kokua Realty represented the seller, Coronado Partners LLC, in the transaction. Passco was self-represented.
KOHLER, WIS. — Kohler Co. has completed its multi-phase renovation of The American Club Resort Hotel in Kohler. The American Club was built in 1918 to house immigrant workers of the Kohler Co. and was restored in 1981 as a luxury hotel, earning the Midwest's only AAA Five-Diamond Award in its first year. The latest renovation included upgraded guest rooms with new furniture, plumbing, flat screen TVs and iPod docking stations. Each room also pays homage to a famous American and includes information and photos of icons such as Ben Franklin and Harriet Tubman. Crews also renovated the resort's common areas such as the lobby and library.
COLUMBUS — Mt. Carmel Health System has inked a 12,060-square-foot office lease at Arlingate Plaza, located at 4171 Arlingate Lane in Columbus. Doug Falor of Cassidy Turley represented the landlord, Time Equities, in the transaction.
NORTHBROOK, ILL. — SAS Architects & Planners is designing an assisted living and dementia care community in Northbrook, which will break ground this November. Called North Shore Place, the two-phase project will be built on a 7-acre site at 1000 Sunset Ridge Rd., near the intersection of Sunset Ridge Road and Skokie Boulevard. The project will include a 156-unit residence with 40 apartments for those requiring memory support services. Amenities will include a theater, card room and computer center. The second phase will include a 32-unit assisted living memory care center, designed to meet the needs of residents with more advanced dementia. The project is slated for completion by year-end 2013.