Milwaukee Tool has acquired a vacant office building in downtown Milwaukee, where it may eventually house up to 2,000 employees, for $7.9 million.
The transaction closed late last week and was recorded with the Milwaukee County Register of Deeds office this morning.
Milwaukee Tool purchased the 370,000-square-foot building at 501 W. Michigan St. through an affiliate, Schwer, Pflicht & Werkzeug Properties LLC, according to county records.
It used the same LLC for other property acquisitions in recent years, such as the purchase of an office building and vacant land in Menomonee Falls' Woodland Prime office park. Milwaukee Tool is developing a $100 million corporate campus there.
The seller was an affiliate of F Street Group. The Milwaukee-based developer originally acquired the building in late 2019 for $4 million. It was formerly occupied by Assurant.
Milwaukee Tool plans to make renovations, and could eventually expand the building. Company officials have said it planned to have hundreds of workers in the building by fall. A Milwaukee Tool spokesperson said today that the company expects to begin renovation work in early June.
It is getting up to $20 million in incentives from the city in exchange for up to 2,000 jobs. The incentive deal calls for an initial 1,210 jobs in exchange for a $12.1 million grant. A second $7.9 million grant could support a building expansion and another 790 jobs.
BizTimes examined the Milwaukee Tool deal's impact on the downtown office market in a recent magazine feature.