By Matt Hunter, Hunter Real Estate Over the past few years, we have seen a noticeable trend in office tenants relocating to new office buildings, particularly in downtown Milwaukee. Notable companies such as Baker Tilly (~40,000 square feet), Old National Bank (~20,000 square feet), CBRE (~15,000 square feet) and Silvercrest Asset Management (~11,000 square feet) have all moved into new office buildings, which are classified as being constructed within the past five years. While these relocations highlight a shift in tenant preferences toward newer buildings, most leasing activity has been observed in recently renovated office buildings. One prime example of this is Baird, which expanded and renewed over 450,000 square feet at 777 E. Wisconsin Ave., reinforcing the demand for renovated office buildings. Other significant leasing transactions include Fiserv, which leased ~160,000 square feet at HUB640; Enerpac’s ~50,000-square-foot lease and Veolia’s ~30,000-square-foot lease at 648 N. Plankinton; Marcus Corp.’s ~50,000-square-foot lease at The Associated Bank River Center; and Allspring Global Investments leasing ~40,000 square feet at 417 E. Chicago St. These transactions further demonstrate the attractiveness of renovated spaces for businesses looking to enhance their operations. This trend reflects a broader “flight to quality” in the office market. Tenants are …
Wisconsin
By James Young, JLL Through 2023 and 2024, JLL industrial has seen a historically high number of new leases signed. JLL research saw positive absorption in the third quarter of 2024 at 48,200 square feet, primarily driven by the completion of owner-built projects. This activity, combined with existing occupier commitment to the region and record-high asking rents, points to a thriving market. As the Milwaukee industrial market continues to grow its regional presence, there are a few factors that set it apart from its larger peer cities like Indianapolis or Minneapolis. In this article, we will discuss what is driving regional industrial activity and the market’s strong growth trajectory. Industrial evolution We continue to see wide expansion into the suburban market, though this has not always been the case. Relocating a tenant from an established urban industrial area to a suburban location was often challenging 15 years ago. Such a move could entail workforce relocation, warehouse closures and complex logistical changes that potentially risked business disruption. Today, JLL research shows other large occupiers are not only retaining their spaces in the Milwaukee market but are also actively expanding into suburbs like Waukesha and Menomonee Falls. JLL is tracking 11 build-to-suit …
MILWAUKEE — Aquarian Holdings has acquired a majority stake in Milwaukee-based PACE Equity, a provider of funding for commercial property assessed clean energy (C-PACE) projects. As part of its investment, Aquarian will provide up to $1 billion of financing that enables PACE Equity to significantly scale its capacity and expand the reach and size of its debt financing projects. Aquarian’s Strategic Opportunities team led the transaction. DLA Piper served as legal advisor to Aquarian in connection with the transaction, and Gibson, Dunn & Crutcher LLP served as legal advisor to PACE Equity. Guggenheim Securities LLC was the financial advisor to PACE Equity. Aquarian maintains approximately $19.5 billion in assets under management.
WEST ALLIS, WIS. — Marcus & Millichap has arranged the $2.1 million sale of a 1,544-square-foot restaurant property net leased to Arby’s in the Milwaukee suburb of West Allis. Constructed in 2004, the building is located at 10743 W. National Ave. Damien Yoder and Madison Harman of Marcus & Millichap’s The Yoder-Harman Group represented the buyer, 12947 Woodbridge Street LLC, a private investor. Todd Lindblom, broker of record in Wisconsin, assisted in closing the transaction.
MADISON, WIS. — McShane Construction Co. has completed The Derby, a 70-unit apartment complex with affordable housing units in Madison. Lincoln Avenue Communities was the developer. Income restrictions were not provided, but 14 of the units meet Wisconsin Housing and Economic Development Authority accessibility requirements. The project features 1,100 square feet of ground-floor office space for a local community group and 2,600 square feet of amenity spaces with a kitchen, fitness room, laundry room, outdoor space, playground and dog park. Knothe & Bruce Architects designed the four-story property. The project is Enterprise Green Communities Certified and features a full solar array system on the roof to power the common areas.
MADISON, WIS. — Breneman Capital has acquired Fairhaven Court Apartments in Madison for an undisclosed price. The 58-unit apartment complex is located on Fairhaven Road. The property was built in two phases and includes a townhome building from 2007 and an apartment building from 2014. Units range from 579 to 1,528 square feet. Bruner Realty will manage the property. Breneman plans to make light renovations to select units.
SHEBOYGAN, WIS. — Midloch Investment Partners and Hempel Real Estate have acquired The Oscar Apartments, a 240-unit Class A multifamily community in Sheboygan near Milwaukee. The purchase price was undisclosed. The property has a new mortgage loan from Bridgewater Bank of Minneapolis. Completed in 2021, The Oscar is comprised of three buildings. Amenities include a fitness center, community room, bike storage, pet spa and outdoor grilling area. The asset was 70 percent leased at the time of sale. Milwaukee-based Harmoniq Residential will handle leasing and management. The new ownership plans to make amenity upgrades.
GREEN BAY, WIS. — Gorman & Co., in partnership with Lutheran Social Services of Wisconsin and Upper Michigan (LSS), has completed Bay City Lofts in Green Bay. The 48-unit affordable and supportive housing community is located at 2510 University Ave. Of the 48 units, 40 are reserved for households earning between 30 and 60 percent of the area median income. The remaining eight units are market rate. Amenities include a community room, fitness center and onsite offices for LSS, which will provide supportive services for residents.
MILWAUKEE — Marcus & Millichap has arranged the sale of a 25,154-square-foot retail property occupied by grocer Sentry Foods in Milwaukee for an undisclosed price. The asset was built in 1960, and Sentry has occupied the space since 2008. There are 4.5 years remaining on the lease. Ben Kohl and Mitchell Kiven of Marcus & Millichap represented the seller, a local family. The property sold at 95 percent of the list price and a cap rate of 7.94 percent. Todd Lindblom, broker of record in Wisconsin, assisted in closing the transaction.
MICHIGAN AND WISCONSIN — NAI Pfefferle has negotiated the sale of a five-property self-storage portfolio in Michigan and Wisconsin. The assets total 355 units across 73,358 square feet. The sales price was undisclosed, but the asking price was $3.9 million. Jonathan Glassco of NAI Pfefferle brokered the sale. Buyer and seller information was not provided.