MADISON, WIS. — Brookdale Senior Living has completed the addition of 67 units and a new memory care program at Brookdale Madison West, an assisted living community in Madison. The $18 million expansion was completed in several phases. In the first phase, a 67-unit assisted living building was added to the existing 48-unit community, as well as a variety of dining options and amenities. In the second phase, the community’s initial assisted living building was updated and renovated to memory care units. The memory care section is split into two sections of 20 units each — one for those with acute memory care needs, and another to try to slow the progression of early-stage dementia.
SUPERIOR, WIS. — Marcus & Millichap has arranged the $2 million sale of a 3,290-square-foot building net leased to Arby’s in Superior, the northwest corner of the state. A limited liability company sold the asset, located at 3821 Tower Ave., to an undisclosed buyer. Sean Doyle, Matthew Hazelton, Cory Villaume and AJ Prins of Marcus & Millichap listed the property on behalf of the seller.
MILWAUKEE — Physicians Realty Trust, a healthcare REIT, has executed a series of purchase and sales agreements, as well as a letter of intent, to acquire 52 medical office facilities from the Catholic Health Initiatives (CHI) for $724.9 million. The CHI portfolio is 94 percent leased and contains 3.1 million square feet of space across 10 states. Approximately 93 percent of the in-place net operating income during the first year will stem from new 10-year lease agreements. The portfolio purchase price includes $32.9 million of future capital improvements, most of which will be completed in the next five years. Physicians Realty Trust expects to close the acquisition in two tranches, the first of which will close this month and cost $202 million. The acquisitions are subject to customary closing conditions, which include the Vatican’s approval to purchase 35 facilities. Catholic Health Initiatives, the fifth largest non-profit health system in the United States, owns over 103 hospitals.
RICE LAKE, WIS. — Marcus & Millichap has brokered the sale of an 18,500-square-foot retail property in Rice Lake, approximately 60 miles north of Eau Claire, for $2.4 million. A limited liability company sold Rose Stone Plaza to an undisclosed buyer. The shopping center, located at 2300 S. Main St., is 100 percent occupied. Adam Prins, Cory Villaume, Matthew Hazelton, Todd Lindblom and Sean Doyle of Marcus & Millichap listed the property on behalf of the seller.
MILWAUKEE — Associated Bank (NYSE: ASB) has purchased the Milwaukee Center office building at 111 E. Kilbourn Ave. in downtown Milwaukee. The purchase price was not disclosed, but the Milwaukee Business Journal reported it was $60.5 million. Chicago-based Hub Milwaukee River Center Properties sold the 28-story downtown building to Milwaukee Center Management LLC, a Green Bay, Wis.-based affiliate of Associated. Reinhart Boerner Van Deuren represented Associated Bank in the transaction. Associated will occupy between one-fourth and one-third of the building when the lease on its current regional office expires in 2022. Around 320 Associated employees currently occupy 97,000 square feet of the Plaza East towers at 330 East Kilbourn Ave. “Our purchase of this iconic, city-center building aligns with our efforts to become the city’s hometown bank,” says Philip Flynn, president and CEO of Associated Bank, which is based in Green Bay. The Class A property was built in 1988 and is 426 feet tall, with a total size of 373,000 square feet. It was 81.7 percent leased at the time of sale. Milwaukee Center is attached to a 220-room InterContinental hotel, Milwaukee Rep Theaters and Pabst Theater. Amenities include three on-site dining options and an on-site fitness studio. Associated Bank’s stock …
BELOIT, WIS. — Hendricks Commercial Properties will develop a 105,000-square-foot speculative industrial building in Beloit, approximately 75 miles southwest of Milwaukee. Situated on 30 acres at the intersection of Willowbrook and State Line roads, the facility will be able to accommodate users 52,000 square feet and larger. The City of Beloit currently owns the land. The facility will feature 32-foot clear heights, 10 dock doors, two drive-in doors and 140-foot truck courts. The property will also have an expansion capacity of 420,000 square feet. The construction is slated to start this spring and be completed by this fall. Angus Young Associates is designing the building. Corporate Contractors Inc. will be the general contractor, and Chase Brieman of CBRE is marketing the development for lease.
WAUKESHA, WIS. — PREMIER Design + Build LLC will construct a 214,533-square-foot industrial distribution warehouse in Waukesha, approximately 20 miles west of Milwaukee. The speculative facility, situated on 11.8 acres, will feature 32-foot clear heights, 28 truck dock positions, four drive-in doors, 52 trailer stalls and 91 car parking spaces. The Class A building will be located at 901 Northview Road. Partners in Design Inc. is the architect for the project, and Pinnacle Engineering Group is providing civil engineering services. HSA Commercial Real Estate is the building developer, Roger Siegel of JLL will market the building for lease.
OAK CREEK, WIS. — The Dickman Company Inc./CORFAC International has completed the sale of a 66,310-square-foot industrial building in Oak Creek, approximately 15 miles south of Milwaukee, for an undisclosed price. Southbranch Property LLC purchased the building from 2250 W. Southbranch LLC. Samuel M. Dickman Jr. and Samuel D. Dickman of The Dickman Company Inc. were the sole brokers in the transaction.
MILWAUKEE — Home2 Suites by Hilton has opened a new 110-room hotel in Milwaukee. Raymond Management Co. will own and manage the Home2 Suites by Hilton Milwaukee Airport. The pet-friendly hotel will feature fully equipped kitchens, modular furniture, Internet access, a combined laundry and fitness area, complimentary breakfast, indoor pool and outdoor grill area. The hotel also provides a 24-hour shuttle to and from the General Mitchell International Airport, which is one mile away. The hotel is located at 5880 S. Howell Ave.
We can expect to see a combination of new and familiar trends in the Milwaukee apartment sector in 2016 that will continue to attract investors to the local apartment market. What makes the start of 2016 different from 2015 is progress toward the normalization of monetary policy. In December, the Federal Reserve Board decided to raise the federal funds rate by a quarter percentage point, the first such increase in nearly a decade. The Federal Reserve Board’s widening may have an impact on the short-term rates, but the long-term interest rates that impact real estate values the most are influenced by the yields on the long-term U.S. Treasury bonds. We expect the long-term interest rates to stay low for the foreseeable future. When there is high demand for the Treasury bonds, the price of the bonds increase and the yields decrease, keeping long-term lending rates low. The two factors responsible for driving rates down in early 2016 are the high levels of volatility in stock markets around the globe and the drastic drop in oil prices. The volatility in the stock markets drives global capital to flow into the safe haven of bonds, and specifically the U.S. Treasury bonds, as …