An affiliate of Greywolf Partners purchased Honey Creek Corporate Center II from a Dallas-based private equity firm that acquired the underutilized building last year in a sheriff’s sale.
A subsidiary of Lone Star Funds sold the 119,596-square-foot, four-story office building at 115 S. 84th St. to Honey Badger LLC, which is registered to Greywolf Partners for $11.2 million, according to state records.
The building is 45 percent occupied and has struggled with high vacancy for years.
The building will be managed and leased by Greywolf Partners, Inc. This acquisition brings together all four office buildings at the Honey Creek Corporate center under one management company for the first time since 2011.
“Controlling all four assets has been a personal goal of mine since the inception of Greywolf. It took five years to get this deal closed but believe that it was worth the wait," Wagner said. "With the 84th Street exit nearing completion the Honey Creek Corporate center is the best located office building in the Milwaukee area."
Wagner said his focus will be to work on leasing. Greywolf will host a "coming out party" on May 3 for the brokerage community.
"When the building was owned by the lender out of Texas, it was widely known they did not have the dollars to make improvements," Wagner said. "We want to let the brokerage community know this building will be re-infused with capital. We will be redoing the entire parking lot of buildings one through three, and the common areas of building two to give it a more modern and fresh look."
In August 2017, Lone Star Funds purchased the property from a group of tenant-in-common investors for $9 million. The property is assessed by the city of Milwaukee for $9 million.
Jack Jacobson, principal at NAI MLG Commercial and Tim Janusz, senior vice president of NAI MLG, brokered this deal.
In 2015, Greywolf Partners assisted in the acquisition of Honey Creek I by a separate ownership group led by Joe Wagner, managing partner. And in 2014, Greywolf completed the refinance of Honey Creek III and purchased Honey Creek IV.