ASG Equities Buys Wisconsin Office Property

ASG Equities has acquired 7954-7974 UW Health Court in Middleton, Wis. The investor paid $39.11 million for the four-story, 197,860-square-foot office property in suburban Madison.

The University of Wisconsin Health Administrative Services fully occupies the property, which serves as one of UW Health’s administrative service office buildings, playing a role in its medical management, information services, compliance, and patient billing services. Recently, the university inked a new 20-year lease for the building.

The property is less than six miles northeast of the University of Wisconsin-Madison and UW Health University Hospital, a 505-bed facility that is part of the UW Health System. As a public health system, UW Health hasn’t been affiliated with the University of Wisconsin System since the 1990s.

SRS Capital Markets Senior Vice President & Principal John Redfield, and Lee & Associates Principal and Managing Director John Battle, represented the seller, a California-based private owner.

The property offers the new owner “minimal landlord responsibilities and included rare beneficial Credit Tenant Lease zero cash flow financing,” Redfield said in a statement, adding that CTL zero cash flow financing is often beneficial to investors because it allows them to acquire a property with minimal equity while relying on the strong credit of the tenant to support highly leveraged financing.

ASG Equities active CRE buyer, seller

New York-based ASG Equities is the family office of the Gindi family, who are known for founding Century 21 Department Stores (Century 21 NYC is in Manhattan near the World Trade Center). Through ASG, the Gindis own about 6.5 million square feet of real estate, primarily core and value-add properties, including retail, industrial, office, multifamily, student housing, and hospitality.

In April, ASG Equities sold two retail properties on Boston’s upmarket Newbury Street to a joint venture between Acadia Realty Trust and Osiris Ventures for $113.5 million. Newmark facilitated the deal.