Beverly Hills investor pays $16 million for 239-unit apartment property in Milwaukee

Purchased from Gorman & Co. affiliate

Credit: Google
Credit: Google

Last updated on August 24th, 2020 at 04:56 pm

An investment group based in Beverly Hills, California has acquired the 239-unit Windsor Court Apartments in the King Park neighborhood on Milwaukee’s near west side for $15.95 million, according to state records.

The apartment buildings are located on the block bordered by West Highland Avenue, North 20th Street, West Juneau Avenue and North 18th Street. According to state records, they were purchased this week by Windsor Court Investors LLC, an affiliate of Beverly Hills-based Stonebridge Global Partners LLC.

According to its website, Stonebridge acquires and manages real estate for its managing partners, Eli Mizrahie and Foo Katan, and their family members. It focuses on Section 8 multi-family housing projects in areas with “improving demographics and fundamentals in secondary and tertiary markets across the East Coast, South East and (Midwest).”

It also owns the 72-unit Primrose Apartments in Neenah and lists Midwestern properties in Illinois, Michigan, Missouri, and other regions of the U.S.

When reached by phone, Stonebridge declined to comment on the transaction.

The seller is Windsor Court Apartments LLC, an affiliate of Oregon, Wisconsin-based affordable-housing developer Gorman & Co.

Kyle Culotta, Gorman director of asset management, said in an email that both Windsor Court and the nearby Lindsay Commons, located at 2101 W. Galena St., were both nearing the end of their initial compliance period under the Low Income Housing Tax Credit program. outside investors decided to market the properties for sale, he said.

“Based on current market dynamics and the condition of the properties, both properties were sold to the open market,” Culotta said. “Gorman & Company was included in the pool of bidders in an attempt to recapitalize the assets allowing continued ownership. Unfortunately, we were unsuccessful in matching the pricing our investors were able to achieve on the open market. Both properties will remain affordable and rent-subsidized for low and moderate income renters under the new ownership. Gorman & Company remains committed to our long standing mission of affordable housing development in Milwaukee.”

Lindsay Commons was also acquired by Stonebridge. According to state records, an affiliate of Stonebridge acquired the 115-unit apartment property in early July for $11.6 million.

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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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