MADISON, WI—Artis REIT has just made the largest dollar volume office transaction in Wisconsin history in its purchase of 16 class A office properties located in Madison and Middleton. The Winnipeg, Canada-based REIT paid $260 million, or $153 per square foot, at a capitalization rate of 7.75%, for the portfolio. The move to such a small market represents a bit of a shift for Canadian capital, which last year concentrated on making investments in traditional gateway cities.
The seller, Vanta Commercial Properties, LLC, was represented by CBRE Institutional Properties led by Minneapolis-based executive vice president Steven Buss, and Chicago-based Paul Lundstedt.
“As a Wisconsin native, I'm very proud of our CBRE team's efforts in completing this significant sale, which demonstrates the desire of cross border capital sources like Artis REIT to enter new and growing US real estate markets like Madison,” says Buss.
The west side portfolio totals about 1.7 million square feet of leasable space and another 8.3 acres of developable land. Tenants occupy 86.7% of the space and include: TDS, a Fortune 500 company, Catalent Pharma Solutions, University of Wisconsin Hospitals and Clinics Authority, West Bend Mutual Insurance Co., and Humana Insurance Co.
The acquisition's first phase closed June 13, and company officials expect the second phase to close August 1.
MADISON, WI—Artis REIT has just made the largest dollar volume office transaction in Wisconsin history in its purchase of 16 class A office properties located in Madison and Middleton. The Winnipeg, Canada-based REIT paid $260 million, or $153 per square foot, at a capitalization rate of 7.75%, for the portfolio. The move to such a small market represents a bit of a shift for Canadian capital, which last year concentrated on making investments in traditional gateway cities.
The seller, Vanta Commercial Properties, LLC, was represented by CBRE Institutional Properties led by Minneapolis-based executive vice president Steven Buss, and Chicago-based Paul Lundstedt.
“As a Wisconsin native, I'm very proud of our CBRE team's efforts in completing this significant sale, which demonstrates the desire of cross border capital sources like Artis REIT to enter new and growing US real estate markets like Madison,” says Buss.
The west side portfolio totals about 1.7 million square feet of leasable space and another 8.3 acres of developable land. Tenants occupy 86.7% of the space and include: TDS , a Fortune 500 company, Catalent Pharma Solutions , University of Wisconsin Hospitals and Clinics Authority , West Bend Mutual Insurance Co. , and
The acquisition's first phase closed June 13, and company officials expect the second phase to close August 1.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
