Real estate developers Randy Roth and Dennis Klein have agreed to purchase two vacant lots and 25 of the 36 branches that were closed as a result of Associated Banc-Corp’s acquisition of Bank Mutual Corp.
[caption id="attachment_356630" align="alignright" width="386"] This former Bank Mutual branch at 510 E. Wisconsin Ave. is a high-profile property in the portfolio.[/caption]
Green Bay-based Associated announced its intention to acquire Brown Deer-based Bank Mutual in July 2017, and in September identified the 36 redundant branches to regulators, which included 28 Bank Mutual and eight Associated branches statewide. The acquisition closed in February, and Associated completed the integration and rebranding of Bank Mutual branches in June.
Roth and Klein in June were the winning bidders on an RFP Associated Bank put out for 25 branches, and two land parcels in Oak Creek and Cedarburg, Roth said. He expects the sale to close by mid-October, and said it’s required to close by the end of the year. The RFP valued the properties, which total 125,288 square feet of building space and 22.4 acres, at $21.8 million in assessed value.
“Associated Bank had (27) parcels that were no longer required because they already had Associated Bank presence in those markets or those trade areas,” he said. “Associated Bank obviously put a priority on someone’s ability to purchase all of them and not just a handful of them.”
The properties to be acquired by Roth and Klein include:
510 E. Wisconsin Ave., Milwaukee;
3340 S. 27th St., Milwaukee;
6801 W. Oklahoma Ave., Milwaukee;
10296 W. National Ave., West Allis;
8400 W. Forest Home Ave., Greenfield;
8780 S. Howell Ave., Oak Creek (plus a vacant lot across the street);
1870 Meadow Lane, Pewaukee;
3212 Fiddlers Creek Drive, Waukesha;
W178 N9379 Water Tower, Menomonee Falls;
W62 N262 Washington Ave., Cedarburg (vacant land parcel);
1526 S. Main St., West Bend;
2111 Holiday Drive, Janesville;
6209 Century Ave., Middleton;
130 W. Maple Ave., Beaver Dam;
145 E. Cook St., Portage;
804 N. 7th St., Sheboygan;
330 N. Broadway, De Pere;
201 N. Monroe Ave., Green Bay;
2603 Glendale Ave., Green Bay;
1227 Egg Harbor Road, Sturgeon Bay;
835 E. Green Bay St., Shawano;
10526 Main St., Hayward;
221 Bridge St., Cornell;
385 W. Main St., Ellsworth;
2000 Crest View Drive, Hudson;
8420 City Centre Drive, Woodbury, Minnesota.
The properties were marketed by Colliers International | Wisconsin. Founders 3 Real Estate Services will serve as broker for Roth and Klein and take care of any sales and property management for the portfolio, Roth said.
For the most part, the branches will be sold either to other financial institutions, such as banks or credit unions; or to national retailers or professional services like chiropractors or dentists, he said. There is a stipulation that a financial institution may not open in one of the spaces until September 2019. Roth declined to disclose the agreed upon sale price for the branch portfolio, or which other banks may occupy the branches.
Roth said Associated Bank also put out a request for proposals for the former Bank Mutual headquarters in Brown Deer, but he and Klein decided not to bid on that property because they liked the portfolio of 25 branches and two vacant lots better.
Roth said all but two of the branches he and Klein plan to purchase are now closed. The branches in Ellsworth and Hayward remain open.