ight seventy five East Wisconsin
EXECUTIVE SUMMARY
PREMIER TROPHY OFFICE ASSET LOCATED IN DOWNTOWN MILWAUKEE, WI
Holliday Fenoglio Fowler, L.P. (“HFF”) is a Wisconsin licensed real estate broker ight seventy five East Wisconsin
US Bank Center Northwestern Mutual Tower
ight seventy five East Wisconsin 833 East Michigan
Van Buren Street Mason Street Prospect Avenue
Michigan Street 794 Clybourn Street Future Site of The Couture Milwaukee
Lincoln Memorial Drive
Lake Michigan
2 EXECUTIVE SUMMARY ight seventy five East Wisconsin
Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present US Bank the 100% fee-simple interest in 875 East Wisconsin (the “Property”), a 210,074 rentable square foot (“RSF”) preeminent Center Northwestern Class A+ office tower located in the heart of Milwaukee’s Mutual Tower highly desirable Downtown market. The Property was completed in 2003, features state-of-the-art construction and is situated upon an irreplaceable 1.4 acre parcel overlooking Lake Michigan as well as the iconic Milwaukee Art Museum.
875 East Wisconsin ranks amongst an exclusive collection ight seventy five of true Class A+ office towers in Downtown Milwaukee and East Wisconsin offers investors a rare core-plus investment opportunity. 833 East The Property is currently 80.9% leased with 7.3 years of weighted average lease expiry (“WALE”). Historically, 875 Michigan East Wisconsin’s prime location and prestigious image have commanded a market leading 100% occupancy for over a decade. Investors will have the unique opportunity to Prospect Avenue Van Buren Street Mason Street benefit from stable in-place cash flow from the Property’s anchor tenant, while adding value through lease up of the remaining vacancy.
KEY PROPERTY STATISTICS
Location 875 East Wisconsin Michigan Street 794 Clybourn Street City Milwaukee, WI Total Rentable Area (RSF) 210,074
Future Site of Typical Floor Plates (RSF) 27,500
The Couture Milwaukee Stories 9
Acres 1.4
Completed 2003
Lincoln Memorial Drive Developer Irgens
Architect Eppstein Uhen Architects
Finished Ceiling Height 9’ ½” 1st floor – 18’ 8” Lake Michigan Slab to Slab Ceiling Height 2nd floor to 8th floor – 13’ 4” 9th floor –17’
Parking 419 Stalls
EXECUTIVE SUMMARY 3 ight seventy five East Wisconsin
PROMINENT CORE TENANCY The Property’s existing tenant roster is indicative of the building’s prestige and includes Global 500 corporation, The Kroger Co., as well as renowned financial services firm, Artisan Partners. 875 East Wisconsin has long attracted the most discerning of tenants and is positioned for continued success well into the future. LOBBY
FLOOR CURRENT RSF %* RENT ESCALATIONS EXPIRES WALE
5-8 97,454 46.4% $23.02 2.25% Dec-28 9.5
1, 3-4 72,580 34.5% $19.19 2.25% Dec-23 4.4
Weighted Average / Total 170,034 80.9% 7.3 Artisan Partners net rental rate less concessions totals $22.22 per RSF. Kroger excludes 14,850 SF of below grade space.
Investment Grade Headquarters NYSE Listed SOUTH EAST VIEW FROM TENANT CONFERENCE ROOM
> 34% > 46% > 80% of the Total RSF is Leased to of the Total RSF is Leased of the Total RSF is Leased to Investment Grade Tenancy to Headquarters Operations Publicly Traded Corporations
4 EXECUTIVE SUMMARY ight seventy five East Wisconsin
The Downtown office market commanded the highest Class A gross asking rents of any submarket by a premium of over 15% as of theSource: fourth CoStar quarter 2018. Source: CoStar
PREMIER CLASS A OFFICE MARKET The Metropolitan Milwaukee Office Market is comprised of ten submarkets with a total existing inventory of approximately 85.1 million RSF, of which over 23% is concentrated Downtown. The Downtown office market absorbed more Class A space than any other Long considered to be the preeminent location for Class A submarketsubmarketin in 2016,2018, representingrepresenting overover office occupants, the Downtown Submarket contains the largest concentration of existing Class A office product of over 7.0 million 93% of the total Class A RSF absorbed in 2018.2016. RSF, enjoys substantial Class A absorption statistics and commands Source: CoStar the highest Class A gross asking rents of any submarket.
SOUTH EAST VIEW FROM TENANT CONFERENCE ROOM
The Downtown office market contains the largest concentration of existing Class A office product, representing over 32% of the total Class A RSF inventory
Source: CoStar
EXECUTIVE SUMMARY 5 ight seventy five East Wisconsin
DOWNTOWN MILWAUKEE RENAISSANCE 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. Presently, 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-use 1.1 million square foot Northwestern Mutual Tower and Commons. developments, including proposed luxury residential tower The This important project is situated directly north of 875 East Couture Milwaukee, the recently completed Milwaukee Bucks’ Wisconsin and stands to reaffirm major corporations’ long term NBA arena and entertainment district, as well as complimentary commitment to Downtown Milwaukee. With the development of infrastructure improvements, including the Milwaukee Streetcar The Northwestern Mutual Tower and Commons, Northwestern Project, have also helped to to position Downtown Milwaukee Mutual will be able to retain approximately 1,100 Downtown jobs as a preeminent work, live, play city. and create an additional 1,900 Downtown jobs.
836 N THE MILWAUKEE STREETCAR PROJECT St. Mary’s 139 E InterContinental Hotel P P STREETCAR PHASE 1 ROUTE and P P WELLS STREET P LAKEFRONT LINE P LAKEFRONT EXTENSION P P P P Wells St P MASON STREET The Northwestern Mutual Milwaukee Tower and Commons PROSPECT AVENUE P P P ight seventy five
East Wisconsin VAN BUREN STREET
JACKSON STREET WISCONSIN AVENUE
JEFFERSON AVENUE 875 E O’Donnell MILWAUKEE STREET BROADWAY STREET Park
P Residence Inn P P
MICHIGAN STREET Future Site of
The Couture Milwaukee Street Car Route
River P P Street Car Route 105 W P P LINCOLN MEMORIAL DRIVE P P CLYBOURN STREET HARBOR DRIVE 794 P P P
6 EXECUTIVE SUMMARY ight seventy five East Wisconsin
The Northwestern Mutual Tower and Commons This 1.1 million square foot 32-story headquarters facility is situated immediately north of the Property between North Cass Street and North Prospect Avenue, from East Wisconsin 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 Source: Pickard Chilton / MKE Drones Source: Pickard position as the preeminent Class A office market within the region. The project has brought nearly 4.6-acres of outdoor public amenity space to the surrounding neighborhood.
The Couture Milwaukee The proposed 44-story luxury residential tower is located just steps from 875 East Wisconsin 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. Source: The Couture by Rinka Chung Architecture Source: The Couture by Rinka Milwaukee Bucks NBA Arena The new $523 million arena anchors a surrounding world- 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. The area was completed in August of 2018.
The Milwaukee Streetcar Project The $128 million Milwaukee streetcar project is a public transportation initiative designed to connect the revitalized neighborhoods of Downtown Milwaukee. The project serves the Intermodal Station and its 1.4 million annual users; the Source: nba.com Third Ward (the fastest-growing neighborhood in Southeast Wisconsin); East Town (with the largest concentration of jobs in the state); and the densely populated lower east side. The Hop began passenger service on November 2, 2018.
EXECUTIVE SUMMARY
Source: milwaukeestreetcar.com 7 ight seventy five East Wisconsin
ENTRANCE
8 EXECUTIVE SUMMARY ight seventy five East Wisconsin 836 N St. Mary’s 139 E InterContinental Hotel P P SELECT AREA AMENITIES P WELLS STREET P P 4 ➊ Harbour House P P ➋ Rare SteakhouseP P P Wells St P ➌ Collectivo Coffee, Downtown Kitchen MASON STREET13 5
Milwaukee➍ Bacchus - A Bartolotta Restaurant PROSPECT AVENUE P ight seventy five ➎ Milwaukee Art MuseumP P East Wisconsin 11 ➏ Betty Brinn Children’s Museum VAN BUREN STREET
➐ Discovery World JACKSON STREET WISCONSIN AVENUE
JEFFERSON AVENUE 6
3 9 O’Donnell MILWAUKEE STREET 10 ➑ The Miller Room Event SpaceBROADWAY STREET Park Retail Banking Branch, Shoe Shine, Valet Dry P 8 Residence Cleaning, Sundry, Salon, Health Center, Jewler, 12 1 Inn Copy Center P 14 P ➒ U.S. Bank Center Galleria MICHIGAN STREET 2 ➓ Milwaukee Federal Building & U.S. 7 CourthouseRiver P P 105 W P P ⓫ The Pfister Hotel LINCOLN MEMORIAL DRIVE P P ⓬ The Westin Milwaukee CLYBOURN STREET HARBOR DRIVE P 13 The Northwestern Mutual Tower and 794 Commons Amenity Base P P The Couture Milwaukee Proposed 14 Amenity Base
EASTERN VIEW FROM 875 EAST WISCONSIN
IRREPLACEABLE 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 East Wisconsin enjoys a truly irreplaceable location.
Long considered one the city’s most accessible office towers, 875 East Wisconsin is strategically located in close proximity to the recently improved Interstate 794 ramp system, providing easy access to the Property’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 Property.
875 East Wisconsin’s prime location affords tenants a unique work, live, play dynamic. The bustling area immediately surrounding the Property 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. EXECUTIVE SUMMARY 9 Contact Information Investment Contacts Debt Contacts
HFF Chicago Jaime M. Fink Christopher S. Carroll 150 North Riverside Plaza Senior Managing Director Managing Director Suite 2500 312.528.3683 312.980.3609 Chicago, IL 60606 [email protected] [email protected] Telephone: 312.528.3650 Wisconsin License #: 54163
Fax: 312.528.3651 Jason A. Bond Jeffrey M. Bramson Senior Director Senior Managing Director/Managing Broker 312.980.3608 312.528.3687 [email protected] [email protected]
Bryan D. Rosenberg Director 312.300.7282 [email protected]
Patrick M. Shields Director 312.528.3685 [email protected]
Sam M. DiFrancesca Director 312.300.7301 [email protected]
Kemp Collings Analyst 312.300.7302
©2019 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. 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 Twitter @HFF.
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.