The boomerang-shaped complex, a three-story building at 11200 W.Parkland Ave., was built in 1990 and recently renovated. The tenantis in the building until 2016. Peter Mitchell, SVP of acquisitionsfor the REIT, says Wells Fargo, with a credit rating of "AAA," is agreat tenant to have. "It's a good back-office location, with goodaccess to public transportation," Mitchell says. "The tenant hasoccupied the building in one form or another since it opened, andthe park is 86% leased," with tenants that include Mutual of Omahaand Wausau Insurance, he says.


He says he cannot provide the lease rate that the tenant ispaying, but says it's "below market rents." Average lease rates areat about $16 per sf for Milwaukee, according to a report by Marcus& Millichap, though this office park is at the northwest outerend of the city limits. Mitchell says the price paid for theproperty was less than the replacement costs, which he estimates at$150 per sf.


The public non-traded REIT specializes in office properties, andnow has 73 buildings in 23 states and Washington, DC, totaling morethan $4 billion in assets and covering 17 million sf. Across theportfolio, the REIT's properties are 98% leased.


Mitchell says this is the first property in Wisconsin. The REITis buying properties across the country, and has paid attention tothe Midwest recently, with the recent sale-leaseback of a188,500-sf office building in the Riverport Business Park inMaryland Heights, MO. The trust also paid $138.5 million, plusclosing costs, in a sale-leaseback for CH2M Hill Cos.'five-building, 478,000-sf headquarters complex in Englewood, COlate last year. "We're still in the building stages of theportfolio," Mitchell says.

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