By Keith Loria
Bentall Kennedy is serving as the real estate advisor for Warba Bank K.S.C.P., and has acquired a Class A, 280,000-square-foot office building in Milwaukee, Wis., from The Brewery Works Inc.
“We felt that there was tremendous appeal to the property,” Clint Hinds, Bentall Kennedy’s senior vice president, portfolio management, told Commercial Property Executive. “The building is an exceptionally maintained property with a LEED Gold rating and frontage along the Milwaukee River. The tenant’s lease was recently extended through 2031 and its urban location continues to attract a steady flow of new office users and residents to the neighborhood.”
The building is currently leased by ManpowerGroup and used for its world headquarters.
CBRE represented the seller in the transaction. The price was not disclosed.
“We’ve observed that the surrounding neighborhood is experiencing significant growth in new development of office space and multifamily units,” Hinds said. “This, coupled with the tenant’s lease recently being extended for the long-term made the timing right for this transaction.”
The property is an institutional quality, Class A office building with modern finishes and a LEED Gold distinction, which directly aligns with the company’s investment thesis and the value that Bentall Kennedy places on assets that adhere to the highest environmental standards.
In 2008, the building was named Best New Development Office by the Business Journal Real Estate Awards.
The property is located just a half mile north of the new Milwaukee Bucks arena, and adjacent to the $1 billion Wisconsin Entertainment District development.
“The ongoing development in the surrounding neighborhood was seen as a key factor in the decision to acquire the property,” Hinds said. “The property is in the center of new commercial development that will solidify the desirability of the area for potential residents and tenants for many years to come.”
Bentall Kennedy’s partnership with Warba Bank has set a goal to invest $100 million of equity over the next year with flexibility to increase the investment target going forward. According to Hinds, the initial investment activity will focus on a mix of office, medical office and multifamily properties.