Search
 

R2 Buys Iconic Riverfront Property

CHICAGO, MILWAUKEE—The Chicago-based firm has started looking for value-add opportunities in secondary Midwest markets, but has a patient outlook for its new acquisition in Milwaukee.

By Brian J. Rogal | Updated on October 12, 2015

CHICAGO, MILWAUKEE—R2 Cos., a Chicago-based real estate investment firm, has just bought for about $13.5 million the Post Office Building on Milwaukee’s downtown riverfront. The iconic four-story structure was a build-to-suit for the United States Postal Service in 1968, and the agency has occupied it ever since. What will happen with the 9.3-acre site is not yet known, as the post office will continue to operate it as a central mail sorting facility for at least five more years.

“We’ve got a very patient outlook from a capital perspective,” Matt Garrison, R2′s managing principal, tells GlobeSt.com. “If we have to keep it for five years, or even ten, we’re fine with that.” In a way, the property’s status opened up an opportunity for R2, which has started looking for deals in secondary Midwest markets. Investors that were attracted to a property with a rock-solid tenant like USPS also preferred one with a longer lease, and most developers looking for a quicker payday did not want to wait five years. “It was a bit of a tweener.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.