advertisement
 
Wednesday, November 19, 2014
HSA Commercial could join Drexel Town Square development team
November 19, 2014 10:49 AM
Chicago-based HSA Commercial Real Estate could join the development team for the Drexel Town Square project in Oak Creek.

The Oak Creek Common Council met in closed session Tuesday to discuss a possible tax incremental financing (TIF) agreement between the city and HSA Commercial for the Drexel Town Square project.

“They are coming to be involved with Drexel Town Square,” said City Administrator Gerald Peterson. “We’re not at liberty to talk about that at this point.”

Drexel Town Square is the mixed-use development under construction at the 85-acre former Delphi plant site southwest of Howell and Drexel avenues in Oak Creek. The project will create a downtown for Oak Creek and will include a new City Hall and library, a town square, a mixed-use Main Street, apartments, restaurants, a Four Points by Sheraton hotel and a big box Meijer store.

Wispark LLC is leading a development team for the project that also includes Zilber Ltd., Barrett Visionary Development, WiRED Properties, Mid-America Real Estate and Rinka Chung Architecture. HSA Commercial could be added to that group. Wispark President Jerry Franke declined to comment on HSA Commercial’s potential role with the Drexel Town Square project.

HSA Commercial Real Estate is a diversified, national full-service commercial real estate firm that provides development, management, leasing and client services in retail, office, health care, industrial and mixed-use properties. The firm’s Milwaukee area work includes the Mayfair Collection project that it is developing in stages in Wauwatosa.

With plans established for most of the Drexel Town Square site, HSA could be involved in yet to be announced plans for the northwest corner of the site. Sources say a health care development is planned for that corner.


comment »

advertisement
Sendik's Towne Centre under contract to be sold
November 19, 2014 10:55 AM
Sendik's Towne Centre, a 187,969-square-foot mixed-use retail and office development in Brookfield, is under contract to be sold, sources familiar with the deal told BizTimes Milwaukee.

Sendik’s Towne Centre is located on a 28-acre site southwest of Capitol Drive and Brookfield Road and is anchored by a 54,301-square-foot Sendik’s Fine Foods grocery store.

It is owned by Cincinnati-based Phillips Edison & Co., which bought the property for $15.4 million in 2011. Phillips Edison bought Sendik’s Towne Centre from BMO Harris Bank, which acquired the property after the original development group filed for Chapter 11 bankruptcy protection in 2009.

In 2012 Phillips Edison spent $1.5 million to reconfigure the parking lot of Sendik’s Towne Centre.

Recently, Mandel Group Inc. began construction of a two-building, 56-unit luxury apartment development, called PrairieWalk at Towne Centre, at Sendik’s Towne Centre. The first residents are expected to move in next July.

comment »

Groundbreaking ceremony held for First Federal Centre project in Brookfield
November 19, 2014 10:12 AM
A groundbreaking ceremony was held last week to celebrate the start of construction for the First Federal Centre project at Moorland and Greenfield avenues in Brookfield, just north of New Berlin.

The project includes an 11,000-square-foot building that will house a 4,500-square-foot First Federal Bank branch on the ground floor and 6,500 square feet of office space available for lease on the second floor.

“This is a very exciting time for us,” said Gary Riley, CEO of First Federal Bank. “We are looking forward to growing our business and establishing new relationships in Brookfield and New Berlin with this new office location.”

The project also includes a 6,300-square-foot retail building, immediately to the east of the bank building, that will be developed by Tarantino & Company.

comment »

advertisement
Pick 'n Save-anchored retail property on Mayfair Road sold for $20.3 million
November 19, 2014 10:28 AM
An affiliate of Beachwood, Ohio-based DDR Corp., one of the largest retail real estate firms in the U.S., recently purchased the Pick 'n Save-anchored retail property at 1717 N. Mayfair Road in Wauwatosa.

The 5.2-acre site on the west side of Mayfair Road consists of a 60,598-square-foot Pick ‘n Save store, a 3,015-square-foot building occupied by a Mattress Firm store, and a 6,136-square-foot multi-tenant building occupied by Bubon Orthodontics, a Firehouse Subs restaurant and a Supercuts hair salon.

The DDR affiliate purchased the property for $20.3 million from an affiliate of Cole Capital, the Phoenix, Ariz.-based private capital management business of American New York-based Realty Capital Properties Inc., according to state records.

comment »

Metro Milwaukee home sales up 3.7% in October
November 19, 2014 10:29 AM
Home sales in the metro Milwaukee area were up 3.7 percent in October, compared to October of 2013. There were 1,487 homes sold in October in the four-county area, compared to 1,434 sold in October of 2013, according to the latest report from the Greater Milwaukee Association of Realtors.

The October sales increase ended eight months of consecutive year-over-year home sales decline in the area. Year to date, the metro area has 14,769 total home sales, down 3.8 percent from 15,351 for the first 10 months of 2013.

“October’s sales gains seem to have finally caught up to the market sentiment brokers have held all year,” said GMAR president Mike Ruzicka. “Brokers were buoyed by the market’s change from one filled largely with distressed properties in 2013 to a more ‘traditional’ one this year, characterized by first-time buyers; move-up buyers with children looking for a larger home; and empty-nesters moving into a new home or condo.”

According to a National Association of REALTORS report, confirmed by local brokers, the percentage of first-time buyers hasn’t come back to its historical rate of 40 percent, Ruzicka said.  After peaking in 2010 at about 50 percent of buyers due to deep discounts on distressed properties and the federal tax credit, first-timers have dropped to about 33 percent this year, he said.

“Additionally, mortgage qualification, student debt and a slowly recovering job market play a role in holding back higher sales in the region,” Ruzicka said.

Listings of homes for sale in the metro area increased in October by 1.6 percent.  The 2,105 new listings in October pushed total year-to-date listings in the market to 25,200, up 3.7 percent vs. 2013.

The seasonally adjusted inventory level (the time it would take to sell all of the homes currently on the market) for October was 7.9 months, a drop from September’s 8.2 month level. The seasonally adjusted level was 7.5 months in October 2013.

comment »

Energy Innovation Center begins construction, announces new tenant
November 19, 2014 10:33 AM
Phase one of construction for the Energy Innovation Center began this week with a focus on creating office space for a segment of the business startups and business service providers that will call the center home.

The EIC, announced by the Mid-West Energy Research Consortium in August, will provide a central facility for companies, startups, institutions and government entities to conduct research and advance innovation in the energy, power and control industry.

Coinciding with the kickoff of construction, the EIC has secured its third tenant, Edison DC Systems. The company, which joins tenants Alliance Federated Energy and the Manufacturing Diversity Institute, is in the midst of developing a power conversion system for data centers. The system converts alternating current into direct current more efficiently, leading to significant savings for energy consumers. The company’s system “creates a unique, clean, uninterruptable power supply,” according to an announcement from M-WERC, which is leading the development of the EIC.

“We are excited about the market for companies looking to incorporate this type of technology, said Edison DC Systems co-founder John Meinecke. “We’re designing a product that just hasn’t been available until now. The technology partners and resources available at the EIC make it a great fit. The availability of power, research labs and expertise allows us to do the type of load testing necessary to bring our products to market.”

The $9.6 million innovation center will occupy 65,000 square feet in the Century City Tower, formerly the Eaton Corp. research building at 4201 N. 27th St. in Milwaukee, with room for 60 tenants total. About 22 of those tenants will be business startups, who will work within a startup incubator model with access to in-house mentors and business service providers, including legal, marketing and engineering professionals. Those providers will be announced in December, according to Jeff Anthony, executive director of the EIC.

Additional tenants will be comprised of corporate, academic and government entities with a vested interest in the energy sector.

M-WERC is continuing to screen inquiries from prospective tenants as well as reach out to tenants it believes would be served well by the center, Anthony said. The center will also launch an application and solicitation process for startup tenants in early 2015.

Within phase one of construction, office space for nine business startups and office space for business service providers will likely be completed on the center’s seventh floor by the end of the year, according to Anthony. After the start of 2015, construction efforts will revamp the second floor to create office space for additional business startups as well as lab space for all startups located in the center.

Phase one of construction will also address the third floor, which will be outfitted to meet the needs of corporate and academic tenants once those tenants have been identified, according to Anthony.

The EIC plans to host a grand opening following the completion of phase one next September. Phase two will likely run from September through October 2016, when the center hopes to have all construction completed and full occupation, Anthony said.

comment »

Mandel Group buys Minnesota apartment complex
November 19, 2014 10:25 AM
Milwaukee-based multi-family housing development firm Mandel Group Inc. has entered the Twin Cities market with its purchase of Lemay Lake Apartments, a 282-unit market-rate apartment complex in Eagan, Minn.

The sale price was not disclosed.

The acquisition was completed by Lemay Lake Equity LLC, an affiliate of Mandel Group.

The apartment complex was sold by OLY-IDA Lemay Lake LLC. Keith Collins, Abe Appert and Laura Hanneman of CBRE brokered the deal for the seller.

“We expect to accelerate our efforts to identify additional, appropriate multifamily properties in the Twin Cities,” said Barry Mandel, president and chief executive officer of Mandel Group. “These types of acquisitions allow us to diversify our asset base to include select Midwestern markets, and provide our investors with opportunities in markets with which they have familiarity and a high level of comfort.”

Lemay Lake Apartments is comprised of three, three-story buildings on the shores of Lemay Lake, a 34-acre lake in central Eagan, Minn. Occupancy of the apartments was 97 percent as of the date of closing, according to Mandel Group.

“The property appealed to us because of the strong economic metrics of the Eagan submarket,” said Jason Babcock, senior acquisitions manager for Mandel Group. “Besides being a solid property with value-add upside potential, the accessibility of jobs, shopping, entertainment, public services and institutions is superior. Overall, the Twin Cities metro market displays the right characteristics to drive the success of apartment assets.”

Financing for the purchase was secured by Mandel Group through Walker & Dunlop Inc. James M. Cope, senior vice president of Walker & Dunlop, originated mortgage financing in conjunction with the purchase.

comment »

Leases
November 19, 2014 10:17 AM

Judson & Associates

Energy House LLC leased 1,507 square feet of space at 21100 W. Capitol Dr., Suite 6, Brookfield, from DBT/AKO Partnership.

CA Insurance Services Corp. leased 1,400 square feet of space at 4325 S. 60th St., Greenfield, from Lutfi T. Tombuloglu.

NAI MLG Commercial

Central Garden & Pet Company renewed its lease of 45,817 square feet of space at 9750 S. Oakwood Park Dr., Franklin, from Wisconsin Commercial LLC.

Best Version Media LLC leased 6,588 square feet of space at 375 Bishop’s Way, Brookfield, from Ehlers.

Swisher Hygeine USA Operations Inc. leased 6,267 square feet  at 16338 W. Glendale Dr., New Berlin, from Glendale New Berlin LLC.

Wheaton Franciscan Healthcare Real Estate Services leased 3,379 square feet of space at 6191 S. 108th St., Hales Corners, from DC Development LLC.

Central Door Solutions & Integrated Technology Consulting LLC leased 2,625 square feet of space at 2608 S. 162nd St., New Berlin, from WDC/TNBC Limited Partnership.

comment »

Sales
November 19, 2014 10:19 AM

NAI MLG Commercial

New Berlin II LLC purchased 114,900 square feet of space at 2630-58 S. 162nd St., New Berlin, from WDC/TNBC Limited Partnership.

Siegel-Gallagher

Club 318 LLC purchased a 6,278-square-foot commercial condominium at 318 E. Chicago St., Milwaukee, from Alimar LLC.

comment »

Andrew Weiland BizTimes Real Estate Weekly is compiled by BizTimes Milwaukee managing editor Andrew Weiland. This bulletin is published every Wednesday morning. Send real estate news tips to Andrew.Weiland@biztimes.com or call him at (414) 277-8181, ext. 120.

Current Issue
advertisement