The new Aurora Health Center at the 84South mixed-use development in Greenfield has been sold to a Tennessee investment firm for $74 million, according to state records.
An affiliate of Nashville, Tennessee-based Montecito Medical Real Estate bought the medical facility at 9000 W. Sura Lane from an affiliate of 84South developer Milwaukee-based Cobalt Partners LLC.
The 138,200-square-foot outpatient surgery center opened a little more than a year ago, in August 2019. The site also includes an approximately 400-stall parking structure.
It is the central location of Aurora Children’s Health services, including specialties in pediatric cardiology, urology, allergy, dermatology, ENT, neuro psychology and radiology.
According to city records, the property has an assessed value of nearly $31.4 million.
Scott Yauck, president and chief executive officer of Cobalt, said his firm wasn't necessarily looking to sell the facility but received unsolicited offers from a number of prospective buyers.
"Cobalt Partners does not typically function as a fee-based or syndicated developer and, as such, is not driven by pre-defined disposition timelines," Yauck said in an email. "We live and work in the communities in which we develop mixed-use projects and tend to hold assets for the longer term. In the case of the Aurora Health Center at 84South, we received unsolicited inquiries from several national firms. As an active developer with a pipeline of new development projects, including another larger project at Loomis (Road) and I-894 in Greenfield to be announced shortly, we felt that the sale transaction made sense, especially given the current economic environment and the opportunities it presents for redeployment of capital."
Chip Conk, CEO of Montecito, noted the acquisition represented a continued expansion of its Wisconsin footprint. The medical real-estate investment firm also bought a medical office property in Chippewa Falls this year.
"We couldn’t be happier to have been selected as the buyer of this extraordinary, high-profile asset," Conk said in a statement. "Aurora Health Center in Greenfield has all of the best attributes we look for. It is an exceptional new property in a dynamic market, with a long-term lease commitment from a dominant provider that offers an array of services under one roof in a prime location. We are especially excited by the opportunity to partner with one of the nation’s leading not-for-profit health systems as our tenant."
According to its website, Montecito has completed $4 billion in medical real estate transactions, and has acquired 180 properties totaling 6 million-plus square feet.
84South is located along I-894 between Layton Avenue, South 84th and South 92nd streets. It includes the Aurora facility, retail buildings and the 268-unit Forte at 84South apartment complex, which was developed by Fiduciary Real Estate Development. A beer garden also opened at 84South this summer.
The development has attracted interest from investors. Last November, Cobalt sold the larger-format retail buildings at 84South for $34.5 million.