Portland-based firm acquired six-property office portfolio for less than assessed value

Collectively the properties are assessed at $2 million more than the total sale price

11100 W. Liberty Drive. (Credit: Felton Properties)

Last updated on May 15th, 2019 at 04:48 pm

Last week, Portland, Oregon-based Felton Properties Inc. announced it had acquired six Milwaukee-area office buildings totaling 392,000 square feet in a $37.7 million portfolio deal.

The assessed value of all of those properties totals $39.7 million according to Milwaukee and Waukesha County records.

New state filings revealed more information about the sale price of the buildings.

11100 W. Liberty Drive. (Credit: Felton Properties)

State records show that two of the buildings, located at 11100 W. Liberty Drive and 7800 N. 113th Street in Milwaukee’s Park Place office park, were together sold for about $18 million. The sale price was nearly $5 million more than the buildings’ combined assessed value of roughly $13.3 million, city assessment records show.

Those buildings each have a single tenant in Aurora Health Care and DentaQuest LLC.

The remaining four properties were acquired in two separate transactions, both of which show a sale price of less than the buildings’ assessed value.

A third building in the Park Place office park, located at 11301 W. Lake Park Drive, which is being leased by Concentrix but not currently occupied by the company, went for $1.2 million. That parcel sold for less than its assessed value of roughly $3.7 million, city records indicate.

20935 and 20975 Swenson Drive, Waukesha. (Credit: Felton Properties Inc.)

The other three buildings that make up the other half of the portfolio deal are in the Crossroads business park in the Town of Brookfield, at 20825, 20935 and 20975 Swenson Drive. The three properties were sold for nearly $18.5 million, according to state records. Waukesha County assesses those buildings at about $22.7 million in all.

The portfolio deal marks the Felton Properties’ first transaction in the state of Wisconsin.

“Our plan is to re-position the Crossroads assets by investing in new tenant amenities as well as upgrades to the common areas and physical building components to create a better overall tenant experience” Felton Properties managing director Jeff Borlaug said last week. “In addition, we’re hopeful that the Park Place and Crossroads properties will continue to benefit from the lift occurring in the greater Milwaukee office market.”

The acquisition was brokered by Tom Shephard, partner of Colliers International | Wisconsin, who represented the sellers, Westport, Connecticut-based Greenfield Partners and Somerset Properties Inc. of Lower Gwynedd, Pennsylvania.

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Alex Zank, former BizTimes Milwaukee reporter.

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