Wauwatosa-based Wangard Partners Inc. sold the 1910 on Water apartment building near downtown Milwaukee to a California investment firm for $11.85 million, according to state records.
It is the latest property Wangard has sold recently, and the developer said more deals are to come as it aims to reinvest in its latest development projects.
According to state records, the buyer is an affiliate of San Francisco-based FPA Multifamily LLC. The 68-unit 1910 on Water building is located at 1910 N. Water St., and was constructed around 2012, said Stu Wangard, chief executive officer of Wangard Partners. He added the building is almost fully occupied.
It is assessed at $9.19 million, according to city records.
Wangard said his firm decided last year to sell a number of assets. It has sold several properties already, with 1910 on Water being the latest, and Wangard said another three or four could be sold by July.
The developer is selling off some of its assets for two reasons, said Wangard: One, it felt the overall market conditions were healthy. This determination came before the COVID-19 pandemic hit, he added. Secondly, the firm wanted to reinvest in its new developments.
Projects that Wangard Partners has in various stages of development include the Tivoli Green apartment complex in Mount Pleasant, the Eagleknit building redevelopment in Walker's Point, the redevelopment of the former Olympia resort in Oconomowoc and a planned apartment project along South First Street in Milwaukee's Harbor District.
Wangard said the 1910 on Water property attracted "some good interest" from potential buyers, even though it hadn't officially reached the market. He said his firm was interviewing real estate brokers when FPA came forward with an interest in acquiring it. Wangard Partners will continue managing the property for FPA.
Matson Holbrook and Patrick Gallagher of CBRE's Milwaukee office handled the deal.
Wangard said he thinks FPA acquired the apartment building a bit below replacement value. He said the building is well constructed, given its insulation, energy-saving features and green roof. The cost to replace the building with such features would probably be a little greater than what it was sold for, he said, "yet, we felt that all in all, it was a fair price."
FPA could not immediately be reached for comment.