Two-Building Office Portfolio: Brookfield, Wisconsin

This opportunity seeks to acquire two Class-A office buildings encompassing over 90,000 square feet of space in Crossroads Corporate Center, a master-planned office park in Milwaukee's thriving western suburb of Brookfield. Crossroads is recognized as the standard in suburban Class-A office product for its design excellence and commitment to quality. It has proven particularly attractive as the national or regional headquarters to financial service and insurance companies, as well as technology businesses.

Crossroads III

20875 Crossroads Circle

Net Rentable Area: 49,300 SF
1 Floor with 6 suites
Current Occupancy: 100% with 5 tenants

Crossroads XIV

20300 Watertower Boulevard

Net Rentable Area: 41,700 SF
2 Floors with 9 suites
Current Occupancy: 90% 5-yr escrow with 5 tenants

If you have questions or would like more information on this investment opportunity, please contact Dan Wycklendt or call 414-431-0742.

Acquisition Strategy

Off-Market

Sponsors have negotiated an off-market sale of the portfolio directly with the owner/seller. Direct negotiations and market-knowledge of the assets led to additional seller-provided covenants.

Stabilized Asset

Target assets represent a well-diversified mix of successful tenants, including regional, national, and global companies. Crossroads III is 100% occupied and Sponsors have negotiated a 90% occupancy guarantee for 5 years for Crossroads XIV.

Strategic Location

Crossroads Corporate Center is the most accessible of all office parks located in the western Milwaukee corridor, with proximity to high-end retail, lodging, and restaurants.

Investment Highlights

Investment Opportunity Details & Value-Add Strategy for Performance Enhancement

Destination Location. A commitment to vigorous commerce and new development in Brookfield have helped create a sense of destination with luxury apartments and high-end retail, including Anthropologie, Lululemon, Arhaus, and the first Von Maur department store in the state.

High Occupancy. Crossroads III is 100% occupied with lease expirations ranging from 2019 to 2026. Crossroads XIV will be guaranteed to have 90% occupancy for 5 years per escrow agreement with Seller.

Diverse Tenant Mix. Each tenant represents distinctly different industries that diversifies investment risk in the event of a systemic economic downturn in any one industry.

Anticipated Rental Growth. The current average rent per square foot is below market rate at $11.64/SF. With rolling lease expirations through 2026, rental rates on lease renewals are expected to grow to $17-$23/SF upon renewals.

Value-Add Improvements. The Sponsors have accounted for value-add improvements to the lobby and hallway common spaces of Crossroads XIV. Additional outdoor amenities will be offered to prime tenants at Crossroads III.

Proactive Asset Management. Through proactive asset management, Sponsors seek to maximize cash-flows by increasing below-market rents, and re-stacking current tenants to create larger, contiguous office suites.

Potential Development and Signage. The Watertower Building's parking lot is highly visible from Barker Road and offers more parking than is currently necessary. Sponsors will evaluate the feasibility of a single-tenant medical office or additional sign revenue for property frontage.