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Wednesday, October 22, 2014
Chase Tower is for sale
October 22, 2014 10:59 AM
The Chase Tower, a 22-story office building at 111 E. Wisconsin Ave. in downtown Milwaukee, is for sale, according to numerous commercial real estate sources.

This is the third time that the building’s owner, Toronto-based Brookfield Asset Management Inc., has tried to sell the Chase Tower since it bought the 472,507-square-foot building in 2006. The building was part of a portfolio of buildings that Brookfield Asset Management acquired from JPMorgan Chase.

The firm paid $45.8 million to purchase the Chase Tower in 2006, but the building now has an assessed value of $21.89 million, according to city records.

The Chase Tower was built in 1961. It was originally known as the Marine Plaza building and was the largest office building in Milwaukee until the 42-story U.S. Bank Center (originally the First Wisconsin Center) was built in 1973.

JPMorgan Chase & Co. remains the anchor tenant in the building. Other tenants in the building include Infinity Healthcare, WUWM Milwaukee Public Radio and the law firm of O’Neil, Cannon, Hollman, DeJong & Laing.

The building also has three retail tenants: Capriotti’s Sandwich Shop, Dunkin’ Donuts and Café Dulce.

JPMorgan Chase currently leases about half of the building, or 235,000 square feet. The firm recently restructured its lease to reduce its footprint in the building down to about 175,000 square feet, in exchange for elimination of a clause in the lease that would have allowed it to terminate the lease in 2016, according to a source. JPMorgan Chase will reduce its footprint in the building by the end of 2015. Its lease expires in 2021.

The building is currently about 84 percent leased. The reduction of the JPMorgan Chase lease will reduce the occupancy rate to about 72 percent.

The elimination of the termination clause for the JPMorgan Chase lease could make it easier for Brookfield Asset Management to sell the building.

In addition, Brookfield Asset Management is making significant improvements to the parking structure, located on the block south of the building. The firm is in the middle of a two-year structural reinforcement project for the parking structure, according to a source.

Brian Nagle, executive vice president of Cushman & Wakefield’s Chicago office, is marketing the building for Brookfield Asset Management. He declined to comment for this report.

“We don’t comment on market rumor and speculation,” said Andrew Willis, spokesman for Brookfield Asset Management.

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Plans submitted for educational facility at former Pabst brewery
October 22, 2014 09:54 AM
Blue Ribbon Management LLC plans to transform the former bottling facility building at the former Pabst brewery complex in downtown Milwaukee into a 250,000-square-foot multi-purpose educational facility, according to plans submitted Tuesday to the City of Milwaukee.

The building, located at 1128 N. 10th St., would include student housing space; hotel space for visiting guests, students and professors; classrooms; amenities that will include a large exercise facility; and a publicly accessible food court.

Subject to city approval, construction could begin this year and be complete in the fall of 2016.

“We anticipate that students from throughout the world attending Milwaukee area colleges and universities will utilize this facility as their home away from home, while attending classes in our community,” said Michael Kelly, vice president of Blue Ribbon Management. “We have been working on this project for over three years and have received great cooperation from the universities and colleges in our area. We have created one of the most dynamic multi-use educational facilities in the United States. We will fully utilize the great historic bones of this building.”

Jim Shields of HGA is the architect for the project and the construction firm is KM Development Corp.

The redevelopment of the former Pabst brewery complex was started by Zilber Ltd. founder Joseph Zilber, who purchased most of the complex and formed The Brewery Project LLC to transform it into a mixed-use urban neighborhood. The Brewery Project LLC has sold several buildings in the complex to other developers to do redevelopment projects.

“We think this new, yet historic facility, will make a positive contribution to the well-being of our community and its ability to attract students and educators from throughout the world who will hopefully choose to live, work and invest in Milwaukee after they have completed their educational pursuits,” said John Kersey, president of The Brewery Project LLC.

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Shops of Grand Avenue up for auction
October 22, 2014 10:42 AM
The online auction sale of the Shops of Grand Avenue in downtown Milwaukee began Tuesday and is scheduled to be complete on Thursday.


The mall is being sold on Auction.com, which is handling the sale along with Rockwood Real Estate Advisors.

The starting bid for the mall was $4.75 million, and the latest bid for the property was $7.75 million this morning.

The property that is being sold is a four-building complex at 275 W. Wisconsin Ave. with 298,109 square feet of space, and an adjacent 1,748-space parking structure.

The auction will not include the Boston Store building at 331 W. Wisconsin Ave., which is separately owned by Wispark LLC.

WAM DC LLC, a group of Milwaukee civic and business leaders, led by Godfrey & Kahn attorney Stephen Chernof, wants to buy and redevelop The Shops of Grand Avenue by retaining retail space remaining in the western half, but transforming the eastern half of the mall into education facilities for area colleges and universities. The group is asking the city to back up to $20 million in bonding for the project.

The Shops of Grand Avenue is currently owned by a Bank of America commercial mortgage trust. Mid-America Real Estate manages the mall itself and leases the retail space in the property.

The value of the Shops of Grand Avenue, built in 1982, has fallen dramatically over the years as the mall has struggled with high amounts of vacant retail space. An investment group formed by New York-based Ashkenazy Acquisition Corp. bought the property in 2005 for $31.7 million. In 2012 it was sold in a foreclosure auction for $8.5 million to a subsidiary of the mall's lender, a group of Bank of America investors.

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Wisconsin Metal Parts buys Pewaukee Road building for $2.6 million
October 22, 2014 10:01 AM
Wisconsin Metal Parts, a Waukesha-based custom manufacturer of machined components and metal parts, recently purchased a 47,500-square-foot building at 1801-05 Pewaukee Road, Waukesha, for $2.6 million.

Brett Garceau of NAI MLG Commercial represented Wisconsin Metal Parts and John Schlueter of Frontline Commerical Real Estate represented the seller, 1801 Pewaukee LLC.

With the addition of this building, Wisconsin Metal Parts now owns three buildings with a total of 100,000 square feet of space, Garceau said.

The company will occupy 27,000 square feet of space in the Pewaukee Road building and the rest of the building is occupied by an existing tenant with a long term lease.

“This was an off the market transaction, which is further testament to depleted supply and strength in the industrial real estate market, specifically within Waukesha County, which is at a 3.8 percent vacancy rate,” Garceau said. “We explored all available on the market opportunities and were forced to dig in and get creative, which is how we uncovered this opportunity with (Schlueter).”

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Retail building on city’s far northwest side sold for $1.25 million
October 22, 2014 10:58 AM
Northwest Fashion Square, a 122,843-square-foot shopping center at 8603-65 W. Brown Deer Road, on the far northwest side of Milwaukee, was sold for $1.25 million, according to state records.

Duluth, Ga.-based NW Fashion LLC purchased the shopping center from an affiliate of Fort Wayne, Ind.-based Equity Investment Group Inc.

The building is more than half empty with 70,839 square feet of vacant space, accoding to Loopnet.com.

It was last sold in 2001 for $4.7 million and currently has an assessed value of about $2.3 million, according to city records.

The shopping center is one of several that have struggled since the closure of Northridge Mall in 2003.

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ADM leases office space in Brookfield
October 22, 2014 09:59 AM
Archer Daniels Midland Company, a Chicago-based food-processing and commodities-trading company that is in the Fortune 500, recently leased 5,240 square feet of office space at 13400 Bishop’s Lane in Brookfield.

Jack Jacobson and Patrick Savole of NAI MLG Commercial represented ADM and Rachel Schmidt of NAI MLG Commercial represented the landlord, WILC-Gateway LLC, to negotiate the lease.

The deal stems from ADM’s sale of its global chocolate business, which included the Ambrosia chocolate plant at 12500 W. Carmen Ave. in Milwaukee, to Cargill Corp. ADM had a sales office in the building that it need to relocate after the building was sold to Cargil, Jacobson said.

ADM’s Brookfield office has about 15 employees, he said.

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Tuna Traffic to move to Raymond Business Park
October 22, 2014 09:58 AM
Technology and marketing company Tuna Traffic, currently based in Franksville, will be moving to a new location at Raymond Business Park in the Town of Raymond. Both Franksville and Raymond are in Racine County.

Tuna Traffic focuses on social connections, marketing and cutting edge technology to provide an enriching web presence to local companies.

Tuna Traffic will join Clear Com in a multi-tenant building being developed by Jon Hendersen, owner of Raymond Business Park, and Dave Grebetz of Clear Com. The building has 11,400 square feet still available for lease and is expected to be finished in March of 2015.

Raymond Business Park is located southwest of I-94 and 6 ½ Mile Road.

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Commercial Real Estate and Development Conference will focus on major projects
October 22, 2014 10:15 AM
A panel of local developers working on some of the most transformative development projects in southeastern Wisconsin will highlight the 12th annual BizTimes Milwaukee Commercial Real Estate and Development Conference.

The event will be held from 7:30 to 9:30 a.m. on Friday, Nov. 14, at Potawatomi Hotel & Casino in Milwaukee.

The keynote speaker for the event will be Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors. He will give an overview of the national real estate outlook.

Also, a panel of prominent local developers working on some of the largest development projects in the region will be featured at the conference. They will include:

- Mark Irgens, CEO and manager of Irgens. The firm is building 833 East, a 17-story, 358,000-square-foot office tower under construction in downtown Milwaukee. The firm is also working on a mixed-use development plan for the Ruby Farm property in Brookfield.
- Jerold Franke, president of Wispark LLC. The firm is leading a team of developers for the 85-acre Drexel Town Square development, which will create a mixed-use downtown area for Oak Creek.
- Scott Yauck, president and chief executive officer of Cobalt Partners LLC, which is working on a mixed-use development in Menomonee Falls called Whitestone Station, which is one of the largest brownfield redevelopment projects planned in the state.

The panel will be moderated by Dr. Mark Eppli, interim James H. Keyes Dean of Business Administration and Robert B. Bell Sr. Chair in Real Estate at Marquette University.

Marquette and the Commercial Association of Realtors Wisconsin (CARW) are event partners for the BizTimes Milwaukee Commercial Real Estate and Development Conference.

To register for the conference, visit www.biztimes.com/creconference

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Real estate odds and ends
October 22, 2014 10:02 AM

Senior apartments planned in Franklin
H.O.L.I.E. Inc. plans to build a 69-unit senior apartment complex at 9260 W. Highland Park Ave. in Franklin.

Taco Bell planned at Holt Plaza in Bay View
A Taco Bell restaurant is planned for Holt Plaza, a shopping center located northwest of Holt Avenue and Chase Avenue in Milwaukee’s Bay View neighborhood. The shopping center is anchored by Home Depot and Pick ‘n Save stores. The Taco Bell will be added at the far west end of Holt Plaza, near South Third Street. The closest existing Taco Bell location to the site is at 230 W. Layton Ave. near Mitchell International Airport.

Wingstop planned in St. Francis
Kurt Hodermann plans to open a Wingstop restaurant in the former Blockbuster store space at 2300 E. Layton Ave. in St. Francis. Hodermann also owns the Subway restaurant in St. Francis. The Wingstop restaurant in St. Francis will have 15 employees and seating for 66. Wingstop, a chain of chicken wing restaurants, has 650 locations, including restaurants in Milwaukee, West Milwaukee, Glendale and Wauwatosa.

Furniture and interior design store planned in Whitefish Bay
Jessica Forston, of Cedarburg, plans to open Fringe Interior Design & Home Furnishings, a high end furniture and interior design consulting store, in a 3,000-square-foot space at 133 E. Silver Spring Dr. in Whitefish Bay.

New salon building planned in downtown Sheboygan
Robyn Denning plans to build a two-story, 2,400-square-foot building on a vacant lot between Nikki’s Nex 2 New, 1019 N. 8th St., and The Flower Cart, 1027 N. 8th St., in downtown Sheboygan. The building will have a salon and spa on the first floor and an efficiency apartment and yoga studio on the second floor. North 8th Street is the Main Street of downtown Sheboygan.

Apartment development planned in Hartland
Madison-based JD McCormick LLC plans to build an 89-unit market-rate apartment development with a pair of new three-story buildings and a second floor addition to an 8,000-square-foot multi-tenant retail building at 208 E. Capitol Dr. McCormick is seeking $1 million in tax incremental financing from the village for the project.

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Leases
October 22, 2014 10:09 AM

Judson & Associates

Geartek Inc. leased 8,800 square feet of space at 594 N. Shore Drive, Hartland, from JAG II LLC and JRG II LLC.

Blue Jay Communications Inc. leased 7,500 square feet of space at S83 W18757-61 Saturn Dr., Muskego, from 187 Muskego LLC.

Pure Mechanical LLC leased 5,760 square feet of space at W227 N937 Westmound Dr., Pewaukee, from Nagawicka View Dairy Farm Inc.

XS Precision Inc. leased 3,400 square feet of space at 21850 Watertown Road, Brookfield, from Brookfield Commerce Center.

Mid-America Real Estate

Scores Sports Bar and Grill leased 5,462 square feet of space in Westgate Square at 4901 Washington Ave., Racine.

Brass Tap leased 4,000 square feet of space at La-Z-Boy Plaza, 7900 W. Layton Ave., Greenfield.

Yummi Foods leased 2,106 square feet of space in Highland Plaza at 8538 W. Brown Deer Road, Milwaukee.

Starbucks leased 1,738 square feet of space at 2805 S. Green Bay Road, Racine.

V Insurance Group leased 1,276 square feet of space in Oak Creek Commons at 2345 W. Ryan Road, Oak Creek.

NAI MLG Commercial

Archer Daniels Midland Co. leased 5,240 square feet of space at 13400 Bishop’s Lane, Brookfield, from WILC-Gateway LLC.

BBJ Rentals Inc. renewed its lease of 4,221 square feet of space at 9082 Deerbrook Trail, Brown Deer, from C-III Asset Management LLC.

DJ’s GoalPost leased 3,576 square feet of space at N81 W15094 Appleton Ave., Menomnee Falls, from MP Falls Plaza LLC.

Cosmic Concepts Ltd. leased 3,477 square feet of space at 231 E. Buffalo St., Milwaukee, from 231 East Buffalo LLC.

BreatheReady leased 1,600 square feet of space at N56 W14044-192 Silver Spring Drive, Menomonee Falls, from High Point Commons LLC.

Rogahn Kelly LLC leased 1,593 square feet of space at N16 W23233 Stone Ridge Drive, Waukesha, from CWCapital Asset Management LLC.

Zilber Property Group

Federal/Whalen Moving & Storage leased 13,311 square fet of industrial space at 4930 S. 2nd St., Milwaukee.

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Sales
October 22, 2014 10:11 AM

Mid-America Real Estate

Boghos K. Jankouzian and Silva Jankouzian purchased 1,738 square feet of space at 2805 S. Green Bay Road, Racine.

Sunset East LLC purchased President’s Pizza at 101-43 W. Sunset Drive, Waukesha.

Ogden & Company

Zeratsky & Trautner Trusts sold a 27-unit apartment building at 1925-27 N. Prospect Ave., Milwauke.

Millenium Properties Inc. sold a 4-unit apartment building at 8223 W. North Ave., Wauwatosa.

Four Mile Properties LLC sold a 169-unit store facility at 4950 Memco Lane, Caledonia.

Evangelical Lutheran Church of the Reformation sold a property at 2201 N. 35th St., Milwaukee.

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Andrew Weiland This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Andrew Weiland. This bulletin is published every Wednesday morning. Send real estate news tips to Andrew.Weiland@biztimes.com or call him at (414) 336-7120.


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