Alterra Healthcare Corp. has sold its two-year-old office building in Wauwatosa, but will remain a tenant of the new owner, Innovation Partners.
Innovation Partners was formed by the Medical College of Wisconsin and Irgens Development Partners, to purchase the 145,000-square-foot facility. The building sold for $15 million in a deal brokered by Bill Bonifas of The Polacheck Co.
Both the Medical College and Irgens are currently located near the Alterra building. The building is less than a mile west of the Medical College’s main facilities at the Milwaukee Regional Medical Center. Irgens Development Partners, meanwhile, is located in office space just down the block from the Alterra Healthcare building, but Irgens has announced intentions to move to a new facility being proposed for the east end of Wisconsin Avenue in downtown Milwaukee.
The three-story Alterra building, at 10000 Innovation Dr. in the Milwaukee County Research Park, will be renamed the Medical College of Wisconsin Research and Resources Center.
While specific plans regarding the Medical College’s use of the building are being finalized, it expects to use some of the space for office-based activities.
The Medical College will occupy just under 60,000 square feet in the facility while Alterra Healthcare will consolidate its operations within the building to 50,000 square feet. Other tenants occupy 15,000 square feet of space, leaving 20,000 square feet available for lease. The building is considered Class A office space. The property could accommodate a 70,000-square foot addition to the building.
Through Innovation Partners, Irgens will manage and lease the building while the Medical College will serve as majority member of the limited liability corporation.
"The rapid growth of biomedical research projects at the Medical College of Wisconsin, paired with our expanding academic and patient care programs and activities, has made the need for additional space a pressing priority," said T. Michael Bolger, president and CEO of the college. He called the facility "ideal" and "in the ideal location to meet our growing needs."
Alterra Healthcare Senior Vice President Mark Ohlendorf called the transaction "an important component of our restructuring activities," and said the firm intends to occupy space in the building for many years.
Alterra Healthcare, founded in 1981, operates more than 400 assisted living residences for the frail and elderly in 26 states. Its rapid expansion led to financial difficulties which it is now attempting to overcome. Its restructuring included the sale of several of its properties in 2001 to repay debt.
Jan. 18 2002 Small Business Times, Milwaukee
