Cobalt sells 84South retail buildings for $34.5 million

Buildings have assessed value of $26.2 million

84South retail buildings. Photo courtesy of Cobalt Partners LLC.
84South retail buildings. Photo courtesy of Cobalt Partners LLC.

Last updated on March 17th, 2020 at 01:36 pm

Milwaukee-based Cobalt Partners LLC, the project developer of 84South in Greenfield, has sold the larger-format retail buildings in the development for a total of $34.5 million, according to state records.

The sale of the buildings was completed in three different transaction, state records indicate. The combined acreage of the parcels sold is 14.8 acres and the total leasable area of the buildings is 195,000 square feet, said Scott Yauck, Cobalt president and chief executive officer.

The buyer is 84 South Retail Center LLC, which lists a Greenfield address and is registered to Davinder Toor. The properties it acquired have a total assessed value of roughly $26.2 million, according to city records.

The buildings included in the sale are those housing Kohl’s, Total Wine & More and the eight-tenant building that includes Five Below, Fresh Thyme Farmers Market, Marshall’s, Ross Dress for Less and ULTA Beauty. The buildings are 100% leased, Yauck said.

“We experienced strong interest in the national retail category-leading tenancy and dominant location that this component of 84South represented,” Yauck wrote in an email. “While we tend not to be sellers, we felt the timing was right … for this transaction and that it would present opportunities to redeploy capital into our pipeline of mixed-use developments, including certain Opportunity Zone investments.”

Azhar Satti of Chicago-based Realty Markets Ltd. represented the buyer in the transaction. Rick Drogosz of Mid-America Real Estate Group in Chicago was the listing agent.

84South is a nearly 50-acre mixed-use development located along I-894 between Layton Avenue and South 84th and South 92nd streets. In addition to retail buildings, it also includes an Aurora Health Care outpatient surgery center, which just opened in August; the 268-unit Forte at 84South apartment complex, which was developed by Fiduciary Real Estate Development; and a planned food and beverage component called The Lokal.

Cobalt Partners in recent months presented conceptual plans to city officials for The Lokal. However, the developer has not submitted any formal plans for the project, said Andrew Stern, Greenfield city planner. No tenants have been named for The Lokal. Similarly, no tenants have yet been named for the project.

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Alex Zank, former BizTimes Milwaukee reporter.

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