East Wisconsin. ight seventy five EXECUTIVE SUMMARY PREMIER TROPHY OFFICE ASSET LOCATED IN DOWNTOWN MILWAUKEE, WI

Transcription

1 EXECUTIVE SUMMARY REMIER TROHY OFFICE ASSET LOCATED IN DOWNTOWN MILWAUKEE, WI Holliday Fenoglio Fowler, L.. ( HFF ) is a Wisconsin licensed real estate broker

2 US Bank Center 833 East Michigan t ree t S en ur B Van Cly Mi bou t Future Site of The Couture Milwaukee rive D l a i r o m e Lincoln M et tre ns rn S tree iga ch 794 2

3 Holliday Fenoglio Fowler, L.. ( HFF ) is pleased to present the 100% fee-simple interest in 875 (the roperty ), a 210,074 rentable square foot ( RSF ) Northwestern Mutual Tower preeminent Class A+ office tower located in the heart of Milwaukee s highly desirable Downtown market. The roperty was completed in 2003, features state-of-theart construction and is situated upon an irreplaceable 1.4 acre parcel overlooking Lake Michigan as well as the iconic Milwaukee Art Museum. 875 ranks amongst an exclusive collection of true Class A+ office towers in Downtown Milwaukee and offers investors a rare core-plus investment opportunity. nue ve A t c Maso spe n Stre ro The roperty is currently 86.9% leased with 6.4 years of weighted average lease expiry ( WALE ). Historically, 875 s prime location and prestigious image have commanded a market leading 100% occupancy for over a decade. With a coveted full floor available for the first time since 2006, investors will be able to quickly return the et building to full occupancy. KEY ROERTY STATISTICS Location City 875 Milwaukee, WI Total Rentable Area (RSF) 210,074 Typical Floor lates (RSF) 27,500 Stories 9 Acres 1.4 Completed 2003 Developer Irgens Architect Eppstein Uhen Architects Finished Ceiling Height Lake Michigan Slab to Slab Ceiling Height arking 9 ½ 1st floor nd floor to 8th floor th floor Stalls 3

4 R O M I NE N T C O R E TE N AN CY The roperty s existing tenant roster is indicative of the building s prestige and includes Global 500 corporation, The Kroger Co., big four accounting giant, Ernst & Young, as well as renowned financial services firm, Artisan artners. 875 has long attracted the most discerning of tenants and is LO BBY positioned for continued success well into the future. FLOOR CURRENT RSF %* RENT ESCALATIONS EXIRES WALE 6, 7, 8 82, % $ % Jul , 3, 4 72, % $ % Dec , % $ % Nov , % Weighted Average / Total 6.4 * Excludes 14,850 SF of below grade space currently leased to Kroger. 4 Investment Grade Headquarters NYSE Listed > 34% > 39% > 73% of the Total RSF is Leased to Investment Grade Tenancy of the Total RSF is Leased to Headquarters Operations of the Total RSF is Leased to ublicly Traded Corporations

5 The Downtown office market commanded the highest Class A gross asking rents of any submarket by a premium of over 15% Source: CoStar as of the second quarter Source: CoStar R E M I E R C L AS S A OFFICE M ARKE T The Metropolitan Milwaukee Office Market is comprised of ten submarkets with a total existing inventory of approximately 82.1 million RSF, of which over 27% is concentrated Downtown. Long considered to be the preeminent location for Class A office occupants, the Downtown Submarket contains the largest concentration of existing Class A office product of over 1.4 million RSF, enjoys substantial Class A absorption statistics and commands the highest Class A gross asking rents of any submarket. The Downtown office market absorbed more Class A space than any other submarket submarketinin 2016, representing over 47% of the total Class A RSF absorbed in Source: CoStar S OUTH EAST V I E W FR OM TEN A N T C O N F EREN C E ROO M The Downtown office market contains the largest concentration of existing Class A office product, representing over 38% of the total Class A RSF inventory Source: CoStar EXECUTIVE SUMMARY 5

6 D OW NTOW N M I LWAUKE E RE N AISSAN CE Downtown Milwaukee has benefited from substantial public and private investment in recent years. Since 2005, over $3.3 billion of investment in infrastructure, recreation, hospitality, multi-family, parking, office, mixed-use development and redevelopment has been completed within Downtown Milwaukee. resently, over $1.7 billion of additional development and redevelopment projects are under construction and over $936 million have been proposed. Recent significant single tenant office developments include the Numerous Downtown multi-family, entertainment and mixed- 1.1 million square foot Northwestern Mutual Tower and Commons. use developments, including proposed luxury residential This important project is situated directly north of 875 East tower The Couture Milwaukee, the Milwaukee Bucks new NBA Wisconsin and stands to reaffirm major corporations long term arena and entertainment district, as well as complimentary commitment to Downtown Milwaukee. With the development of infrastructure improvements, including the highly anticipated The Northwestern Mutual Tower and Commons, Northwestern Milwaukee Streetcar roject, have also broken ground in recent Mutual will be able to retain approximately 1,100 Downtown jobs years, helping to position Downtown Milwaukee as a preeminent and create an additional 1,900 Downtown jobs. work, live, play city. TH E M ILWAU KE E ST RE E TCAR ROJE C T EE T W EL LS ST R V A N B U R EN W IS C O N SI R EE T M A SO N ST The Northwestern Mutual Tower and Commons STREETCAR HASE 1 ROUTE and LAKEFRONT LINE STREETCAR FUTURE EXTENSIONS N A V EN U E 875 E O Donnell ark L D RIV E JA C K SO N N A V EN U E JE FF ER SO B R O A D W AY M ILW A U K EE C T AV E N UE ROSE 836 N St. Mary s RIA MO M IC H IG A N DR OR LIN IVE LN C LY B O U R N CO ME Future Site of The Couture Milwaukee RB HA Ro ut e St re et Ca r Ro ut e St re et Ca r

7 Source: ickard Chilton / MKE Drones The Northwestern Mutual Tower and Commons This 1.1 million square foot 32-story headquarters facility is situated immediately north of the roperty between North Cass Street and North rospect Avenue, from Avenue to East Mason Street. With an estimated total project cost of approximately $450 million, The Northwestern Mutual Tower and Commons reaffirms the Downtown submarket s position as the preeminent Class A office market within the region. The project is scheduled for completion by late 2017 and will bring nearly 4.6-acres of outdoor public amenity Source: The Couture by Rinka Chung Architecture space to the surrounding neighborhood. The Couture Milwaukee The proposed 44-story luxury residential tower is located just steps from 875 at the intersection of East Michigan Street and North Lincoln Memorial Drive. The ultra high-end structure will contain 312 apartments in a tower situated upon a 3-story amenity base featuring a rapid transit center and streetcar terminal, 2-story grocer, numerous restaurants, a parking structure and public rooftop garden. Construction will begin in December 2017 with projected completion scheduled for Milwaukee Bucks NBA Arena The new $524 million arena will anchor a surrounding world- Source: NBA Media Ventures, LLC class entertainment district comprised of approximately 30-acres situated between North Fourth Street and North Sixth Street, from West Highland Avenue to West Juneau Avenue. Completion of the arena is anticipated in time for the start of the 2018 NBA season. The Milwaukee Streetcar roject The $128 million Milwaukee streetcar project is a highlyanticipated public transportation initiative designed to connect the Milwaukee. revitalized neighborhoods of Downtown The project will initially deliver 2.5-miles of streetcar track running north and eastbound from the Milwaukee Intermodal Station through some of the densest Source: milwaukeestreetcar.com employment, residential and entertainment districts in the city. The initial project phase is expected to deliver in the second half of 2018 with the nearest stop planned at the based of The Couture, just steps from the roperty. 7

8 E NT R A NCE 8 EXECUTIVE SUMMARY

9 836 N St. Mary s 13 The Northwestern Mutual Tower and Commons Amenity Base 14 The Couture Milwaukee roposed Amenity Base O Donnell ark 8 ST RE ET 14 ST RE ET CLYB OU RN 794 IVE LN 7 DR CO OR 1 ME 2 E AV EN UE RB The Westin Milwaukee MI CH IG AN HA River 105 W U.S. Bank Center Galleria Milwaukee Federal Building & U.S. Courthouse The fister Hotel 12 5 L D RIV 10 Retail Banking Branch, Shoe Shine, Valet Dry Residence Cleaning, Sundry, Salon, Health Center, Jewler, Inn Copy Center ➒ ➓ ⓫ ⓬ W IS CO NS IN 13 RE ET MA SO N ST RIA ST RE ET JA CK SO N LIN The Miller Room Event Space N AV EN UE e ke au Discovery World 11 JE FF ER SO lw Betty Brinn Children s Museum MI LW AU KE Mi Milwaukee Art Museum E ST RE ET Collectivo Coffee, Downtown Kitchen Bacchus - A Bartolotta Restaurant 4 MO N ST RE ET VA N BU RE Rare Steakhouse ST RE ET W ET W EL LS ST RE Harbour House BR OA DW AY ➊ St ➋ ➌ ➍ ➎ ➏ ➐ ➑ ells T A V EN UE SELECT AREA AMENITIES R O S EC 139 E InterContinental Hotel E AST E R N V I E W F RO M EAST W IS C O NSI N I RRE L AC E A B L E LOCATION Situated at the center of the Class A Downtown Submarket, clustered amongst Milwaukee s most prestigious modern office and residential developments, overlooking Lake Michigan as well as the iconic Milwaukee Art Museum, 875 enjoys a truly irreplaceable location. Long considered one the city s most accessible office towers, 875 is strategically located in close proximity to the recently improved Interstate 794 ramp system, providing easy access to the roperty s parking garage, which is conveniently accessed from East Michigan Street. Commuters preferring alternative modes of transportation also benefit from the numerous bus and streetcar stations located just steps from the roperty. 875 s prime location affords tenants a unique work, live, play dynamic. The bustling area immediately surrounding the roperty is home to many of the city s most influential businesses and courts, hotels, luxury residential towers, iconic landmarks and entertainment destinations, providing tenants immediate access to the city s most desirable amenities. 9

10 Contact Information HFF Chicago 181 West Madison Suite 3900 Chicago, IL Telephone: Fax: Investment Contacts Jaime M. Fink Senior Managing Director Wisconsin License #: Jeffrey M. Bramson Senior Managing Director/Managing Broker Debt Contacts Christopher S. Carroll Managing Director Jason A. Bond Senior Director Bryan D. Rosenberg Director atrick M. Shields Director Sam M. DiFrancesca Associate Holliday Fenoglio Fowler, L.., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.