100 East office building in downtown Milwaukee in foreclosure

Building lost major tenant Michael Best last year with move to BMO Tower

100 East
100 East

Last updated on August 26th, 2021 at 02:23 pm

The 100 East office tower in downtown Milwaukee is in foreclosure, about a year after it lost a major tenant to a newer downtown building.

The 435,629-square-foot, 35-story office building is located at 100 E. Wisconsin Ave. It has been placed into receivership, according to a foreclosure of mortgage case pending in Milwaukee County Circuit Court.

The lawsuit was filed by Wilmington Trust National Association, a trustee to the building’s lenders. The building’s owner is an affiliate of Woodland Hills, California-based Hertz Investment Group.

Friedman Real Estate Management has been appointed receiver, meaning it has temporarily taken over management of the property.

Hertz acquired the building in 2016 for $78 million, according to state records. The acquisition was part of a $416.9 million office portfolio deal for Hertz.

That same year, law firm Michael Best & Friedrich announced it would move its 235 employees out of 100 East into the BMO Tower, 790 N. Water St. The move took place in April 2020.

Also in 2016, PricewaterhouseCoopers announced it was moving more than 250 workers from 100 East to the 833 East office building. The move took place that December.

Morningstar Credit Ratings LLC, a national credit rating organization, in 2018 placed a $51.9 million loan on the 100 East building on its watchlist because of the expected drop in occupancy from 83% to 60.4%. The drop in occupancy was due to the Michael Best relocation.

100 East was built in 1989. It has an assessed value of $73.73 million, according to city records.

Neither Hertz nor Wilmington Trust immediately responded to requests for comment.

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Alex Zank covers commercial and residential real estate for BizTimes. Alex previously worked for Farm Equipment magazine and also covered statewide construction news at The Daily Reporter. He graduated from the University of Wisconsin-Eau Claire, where he studied journalism, political science and economics. Having grown up in rural western Wisconsin, Alex loves all things outdoors, including camping, hiking, four-wheeling and hunting.

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