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TIAA Sells 654,000-SF Office Complex for $95M

MILWAUKEE-Triple Net Properties and affiliate tenants in common acquire 411 East Wisconsin Ave., which includes a 30-story office tower and a two-level bank building connected by a five-story atrium.

By Brian K. Miller | Updated on May 12, 2005

MILWAUKEE-A 654,000-sf office complex here has changed hands for $95 million. Triple Net Properties and affiliate tenants in common acquired the property from a TIAA-CREF subsidiary. The asset, 411 East Wisconsin Ave., includes a 30-story office tower and a two-level bank building connected by a five-story atrium, and two attached multi-level parking garages that accommodate approximately 1,400 cars. The property recently underwent a major capital improvement program to upgrade the building lobby and elevator cabs and is currently 82% leased. Major tenants include Quarles & Brady LLP and American Appraisal.LaSalle Bank provided acquisition financing for Triple Net Properties. Triple Net’s acquisitions director Steve Corea tells GlobeSt.com that concurrent with the transaction, Quarles & Brady, which occupies about 25% of the property, inked a new 10-year lease in the building that replaces its previous lease, which was set to expire in 2008.Average vacancy Downtown is about 12%. The going triple net lease rate is $14 to $16 sf per year. Triple Net expects the first year cap rate will be in the 7% range if it can push occupancy in the building closer to 90% in the near term. “Now that the building is no longer for sale, we have been seeing more leasing activity,” Corea says. “Based on the increased activity, we expect to meet or exceed our pro forma.”The transaction was brokered by the Chicago office of Holliday Fenoglio Fowler LP. Managing director Jaime Fink led the disposition team. He was not immediately available Thursday for comment. In a prepared statement, Fink says 411 East Wisconsin Ave. is the first true trophy tower to trade in Downtown in the past five years.

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