Milwaukee-based mining equipment manufacturer Joy Global Inc. is expanding by leasing 31,690 square feet of space in Honey Creek Corporate Center III, 135 S. 84th St., Milwaukee, and is making plans to increase the size of its corporate headquarters at the 100 East building at 100 E. Wisconsin Ave. in downtown Milwaukee, according to a commercial real estate source.
The four-building Honey Creek Corporate Center complex has a total of 420,000 square feet, including 56,000 square feet that is available for lease, with an occupancy rate of about 87 percent, according to a commercial real estate source. The complex is owned by Greywolf Partners Inc.
The lease was brokered by Terry McMahon of The Boerke Company, who represented Joy Global, and Steve Pape and Lyle Landowski of Inland Companies, who represented Greywolf Partners.
Joy Global currently leases about 7,000 square feet of space in the 100 East building for its corporate headquarters and is planning to add another 6,000 to 10,000 square feet there, according to a commercial real estate source.
Joy Global has experienced significant growth in recent years. The company recently reported fourth quarter net income of $146 million, or $1.39 per share, up from $124 million, or $1.20 per share, in the same period a year ago. The company’s net sales for the current quarter increased by 9 percent to $1.0 billion compared with $964 million in the fourth quarter of fiscal 2009.
"The improving bookings rate supports our view that our mining customers will continue to increase their capital expenditure plans in response to strong industry fundamentals,” said Mike Sutherlin, Joy Global president and chief executive officer. “We continue to ramp up our production to meet this expected growth in demand and, as a result, this is the first quarter in which both orders and shipments have exceeded the $1 billion threshold for us. We finished the year with increasing order rates and improving operational and financial results, and this will provide momentum into 2011."
The 35-story, 432,092-square-foot 100 East building is owned by Newton, Mass.-based CommonWealth REIT, which purchased the building earlier this year for $81.3 million.
Meridian Industries Inc. currently has its headquarters at the 100 East building, but its lease is up and CommonWealth REIT has asked it to move out to accommodate an expansion of Joy Global’s headquarters, according to a source.
