A Cudahy industrial park with a total of 10 buildings sold for $59.9 million, according to state records.
A joint venture between New York City-based
DRA Advisors, specializing in real estate investment management services for institutional and private investors, and Minnesota-based
Capital Partners, an investment and development firm, purchased the properties.
The previous owner was an affiliate of Deerfield, Illinois-based
Oak Realty Group.
Located in Mitchell Industrial Park, the properties are located just southeast of Milwaukee Mitchell International Airport. The buildings have a total of 880,000 square feet of building space and are 99% leased to 22 tenants.
The deal was brokered by
Colliers and is the largest industrial sale year to date in Wisconsin in terms of both size and value, the commercial real estate firm said in a statement.
”Capital Partners is very excited to expand its real estate holding in Milwaukee, now owning and managing over 1.2 million square feet in 15 buildings throughout this great industrial Milwaukee market," said
Peter Mork, managing director at Capital Partners. "We have big plans to enhance the look and identity of the Mitchell Industrial Park in the coming months along with spending significant capital into parking lots and buildings throughout the Park.”
The properties include:
- 1920 E. College Ave., which includes two buildings. One is occupied by commercial baker Alpha Baking Co. and used auto parts store Quality Used Engines.
- 5877 S. Pennsylvania Ave., which is occupied by manufacturer Milwaukee Cylinder.
- 2200 E. College Ave., a 109,000-squar-foot building with several tenants including JL Moving, garage door supplier Ultimate Cudahy Doors & Gates and trucking company Todd Transit, among others.
- 6120 S. Ace Industrial Drive, a 53,000-square-foot building occupied by logistics company DHL.
- 6185 S. Ace Industrial Drive, which includes four buildings totaling 210,000 square feet, according to LoopNet. Current tenants include Mattress Firm and Overhead Door Co. of Southeast Wisconsin, among others.
- 6055 S. Pennsylvania Ave., a 140,000-square-foot building occupied by manufacturer Milwaukee Composites.
- 6055 S. Ace Industrial Drive, which is a 3-acre lot.
Oak Realty Group
purchased the industrial park from a Chicago-based ownership group in 2017 for an undisclosed amount.
“Our team brokered the sale of this portfolio to Oak Realty Group almost seven years ago, so it is gratifying to also help them exit with a successful sale at the end of their hold period," said
Tom Shepherd, partner at Colliers. "The Milwaukee County airport industrial market fundamentals are very strong, and they have been for years. We look forward to helping the buyer achieve outstanding results on their investment. They are making a big commitment to Milwaukee, and we share their positive outlook on the future of the industrial sector.”
DRA Advisors invests in commercial properties nationally, according to its website, and already owns a total of 337,000 square feet of industrial space in Wisconsin, though the properties are not specified.
The company
purchased two industrial buildings in Racine and Kenosha Counties totaling about 200,000 square feet last year for $26.2 million.
DRA Advisors and Oak Realty Group did not respond to request for comment.
The portfolio was listed by Tom Shepherd, Jennifer Huber-Bullock, Bill Langhoff and Joe Langhoff of Colliers | Wisconsin along with Jeff Devine, Steve Disse, and Tyler Ziebel of Colliers | Chicago. The offering garnered significant interest from investors across the United States and Canada, according to Colliers.
