Hilbert Properties, a Newport Beach, California-based real estate investor, has acquired two recently built apartment properties in Milwaukee for $39.35 million, according to state records.
In separate transactions, Hilbert affiliates bought the Easton apartments on the city's East side for $27.4 million and the Quartet apartments in the Walker's Point neighborhood for $11.95 million.
An affiliate of Milwaukee-based New Land Enterprises sold the 48-unit Quartet, located at 211 W. Mineral St.
The seller of the 96-unit Easton, located 1632 N. Franklin Place, was Easton 1632 LLC. The investors group includes Milwaukee investment broker Jeno Cataldo and Michael Klein, president of Milwaukee-based Klein Development.
Hilbert Properties did not immediately respond to a request for comment on the deals.
Easton was built in 2019, totals 160,414 square feet and is assessed at roughly $17 million, according to city records.
Quartet totals 66,222 square feet and is assessed at $7.76 million. Construction of the Quartet started in 2019 and the building opened to tenants last year.
Harmoniq Residential is managing both properties. It had already been managing Easton, but recently added Quartet to its roster. It alerted Quartet residents of the change in management recently. Harmoniq is the residential property management arm of Colliers | Wisconsin.
The sale of Quartet allows New Land to put more money toward another apartment project it is developing: Nova, a 251-unit building at 1237 N. Van Buren St., said Tim Gokhman, managing director of New Land.
"New Land typically builds and holds — we’ve developed our business model and property management operations around that very principle," Gokhman said in an email to BizTimes. "However, we also invest heavily into our own projects — more than (an) average developer — and saw an opportunity to do well for our investor and free up some capital to reinvest in Nova."
Gokhman said New Land will continue its practice of building and holding its properties long-term in Milwaukee.
"(B)ut as we scale up and look to other markets, I think you’ll see a slightly more hybrid asset management approach from us," he said.
New Land is active in Walker's Point. It is developing another apartment building on Mineral Street, northeast of where it meets South Fifth Street.