Milwaukee-based Hammes Co. recently sold a medical office building in Brookfield for $14.1 million, nearly $4 million more than what it paid for the property two years ago.
According to state records, an affiliate of Hammes sold the building at 17000 W. North Ave. to Brookfield 1700 APL RKC LLC, an affiliate of Boca Raton, Florida-based Kayne Anderson Real Estate.
The 52,700-square-foot medical office building is located near the northwest corner of West North Avenue North Calhoun Road. The property is assessed at $10.32 million, according to Waukesha County records.
Hammes sold the property about two years after first acquiring it for $10.4 million.
In a statement, the company said it normally holds onto its properties long term, but the property commanded "a compelling price."
"This successful sale reflects the value that Hammes can create within a medical office building," the company said in an emailed statement. "During our ownership of this attractive asset, we were able to lease vacant space, extend existing leases and improve the building for health care providers and their patients through capital improvements."
Hammes continued, "While we are generally a long-term holder of health care real estate, our ability to execute this transaction at such a compelling price during a global pandemic reflects the interest in our high-quality medical properties. We are pleased with this outcome as it highlights the substantial value we can create for our institutional investors such as state pension funds, endowments and foundations. These types of dispositions allow us to continue to invest into health care and health care real estate going forward."
Representatives of KA Real Estate did not immediately provide a comment on the transaction.
According to its website, KA Real Estate invests in medical office, senior housing, student housing and self-storage properties. It typically targets investments ranging from $30 million to $500-plus million.
It has nearly $10 billion of assets under management. Since 2013, it has acquired about 21 million square feet of medical office space, which includes 493 properties across 40 states.
KA Real Estate says it, along with exclusive joint-venture operating partner, Remedy Medical Properties, is the largest privately held, non-hospital affiliated owner of the medical office asset class in the U.S.