Fulcrum Asset Advisors and Millbrook Properties, both based in Chicago, acquired the 250 Plaza office building at 250 E. Wisconsin Ave. in downtown Milwaukee, and the adjoining parking structure, according to an announcement today from real estate firm JLL.
BizTimes Milwaukee first reported last week that the sale of the building was imminent.
The building was sold by Dallas-based Lone Star Funds. Financial terms of the sale were not disclosed. The building was acquired by Lone Star Funds in 2013 for $7.5 million, after the building had gone into receivership in 2009. Its current assessed value is about $7 million, according to city records.
The 200,044-square-foot 250 Plaza building was constructed in 1973 and has struggled in recent years with a high amount of vacancy. The building’s current occupancy rate is just 31 percent. Tenants in the building include Regus, Brown and Caldwell, Regal Investment Group and Scottrade.
Real estate industry sources say the building needs significant renovations. The new owners today announced plans for major improvements to the property. The new owners also plan to rebrand the building as Two Fifty East.
“Fulcrum and our partner Millbrook are looking to invest in assets that require significant repositioning because of low occupancy and the need to complete deferred maintenance and overall updating,” said Scott M. Stahr, principal of Fulcrum Asset Advisors. “This acquisition fits the bill. Though in need of significant TLC, it is located in the heart of Milwaukee’s CBD and everything that location has to offer. The building has great bones with efficient floor plates, floor to ceiling windows showcasing the tremendous views, and nine-foot ceiling heights. We are very enthused about working with our partner Millbrook to make Two Fifty East a contemporary, exciting workspace alternative.”
In working to reposition the property, Fulcrum and Millbrook plan to improve on the building’s amenities with a fitness center with a bike room and shower facilities, wi-fi lounge, conference center and attached covered parking. Renovations will include the main lobby and entrance, the common corridors and restrooms, a comprehensive elevator modernization including new elevator cab interiors, and major work in the parking garage to add lighting.
“Two Fifty East Wisconsin is a terrific opportunity to renovate and add value to a high quality office building and parking garage prominently located in the Milwaukee CBD,” said Bruce Hecktman, President, Millbrook Real Estate Company. Millbrook has successfully undertaken similar renovations to office assets in need of attention, repositioning, and hands on ownership. We look forward to working with our partners at Fulcrum to bring an upgraded and renovated office building to the Milwaukee business community.”
Dan Jessup, executive managing director of JLL, assisted Fulcrum in the acquisition. The Lone Star Funds was represented by Curt Smith of CBRE. Jessup, along with Patrick Savoie and Regina Levchets, also of JLL, will make up the agency leasing team for the building.