Next Realty Acquires Another Three Centers

CHICAGO, MILWAUKEE—An affiliate of Next Realty, LLC has purchased three Milwaukee area retail properties totaling approximately 126,000 square feet for about $17 million. The properties were sold by Siegel-Gallagher's Investment PropertiesGroup.

“We like strong, stable communities and these definitely count,” Eteri Zaslavsky, managing director of Northbrook, IL-based Next Realty, tells GlobeSt.com. The retail areas surrounding the acquisitions have very high rates of occupancy, for example, and each also has “healthy development going on.”  

Furthermore, “when compared to similar properties in the Chicago area, yields are more attractive in Milwaukee,” she says. The properties were acquired on behalf of Next Realty Fund VIII, LP. The fund has now acquired nine centers across the US for a total of more than $100 million.

The properties include South Towne Center at 3700-3750 S. 27th St. in Milwaukee, which was owned by South Towne Center LLC; Greenfield Towne Center at 6100-6196 W. Layton Ave. in suburban Greenfield, which was owned by Towne Realty Co., an affiliate of the Zilber Property Group; and Autumn Grove Plaza at 12850-12960 W. Bluemound Rd. in Elm Grove, which was owned by Autumn Grove LLC. Tenants occupied about 99% of the entire portfolio at the time of the acquisition.

Patrick Gallagher, Matson Holbrook and Max Schultz, all members of Siegel-Gallagher, represented the sellers in the transactions.

“Each of these properties has unique characteristics, and that contributes to the diversification of our fund,” Zaslavsky adds.

South Towne Center is the largest property in the portfolio and totals approximately 65,000 square feet. It has national and regional tenants including a Save-A-Lot grocery store, Dollar Tree, Rainbow and Get It Now. The center, located five miles southwest of downtown Milwaukee, was developed in 1958 and renovated in 1998. The 99% occupancy level among the neighboring one million square feet of retail space demonstrates the strength of the immediate trade area, according to Zaslavsky. “Every tenant we spoke to had very good things to say about the center and the location.”

A diverse group of tenants including Wisconsin Credit Union, US Army and US Navy recruitment offices, Medical Diagnostic Imaging and Board Game Barrister lease about 96% of the 32,000 square foot Greenfield Towne Center. The neighborhood center, developed in 1995, is located seven miles southwest of downtown Milwaukee.

Autumn Grove Plaza and TCF Bank is a three-building specialty center totaling about 29,000 square feet. TCF Bank, Commerce State Bank, Wisconsin Vision, Wine Cellars of Wisconsin, Elements Therapeutic Massage and Tom+Chee's restaurant occupy 100% of the center. The center was developed in phases, the TCF building in 1981 and the two additional buildings in 2005.

Next Realty has identified one more center it plans to acquire with the VIII fund. After that, Zaslavsky says “we will gear up to raise capital for our next fund.”

CHICAGO, MILWAUKEE—An affiliate of Next Realty, LLC has purchased three Milwaukee area retail properties totaling approximately 126,000 square feet for about $17 million. The properties were sold by Siegel-Gallagher's Investment PropertiesGroup.

“We like strong, stable communities and these definitely count,” Eteri Zaslavsky, managing director of Northbrook, IL-based Next Realty, tells GlobeSt.com. The retail areas surrounding the acquisitions have very high rates of occupancy, for example, and each also has “healthy development going on.”  

Furthermore, “when compared to similar properties in the Chicago area, yields are more attractive in Milwaukee,” she says. The properties were acquired on behalf of Next Realty Fund VIII, LP. The fund has now acquired nine centers across the US for a total of more than $100 million.

The properties include South Towne Center at 3700-3750 S. 27th St. in Milwaukee, which was owned by South Towne Center LLC; Greenfield Towne Center at 6100-6196 W. Layton Ave. in suburban Greenfield, which was owned by Towne Realty Co., an affiliate of the Zilber Property Group; and Autumn Grove Plaza at 12850-12960 W. Bluemound Rd. in Elm Grove, which was owned by Autumn Grove LLC. Tenants occupied about 99% of the entire portfolio at the time of the acquisition.

Patrick Gallagher, Matson Holbrook and Max Schultz, all members of Siegel-Gallagher, represented the sellers in the transactions.

“Each of these properties has unique characteristics, and that contributes to the diversification of our fund,” Zaslavsky adds.

South Towne Center is the largest property in the portfolio and totals approximately 65,000 square feet. It has national and regional tenants including a Save-A-Lot grocery store, Dollar Tree, Rainbow and Get It Now. The center, located five miles southwest of downtown Milwaukee, was developed in 1958 and renovated in 1998. The 99% occupancy level among the neighboring one million square feet of retail space demonstrates the strength of the immediate trade area, according to Zaslavsky. “Every tenant we spoke to had very good things to say about the center and the location.”

A diverse group of tenants including Wisconsin Credit Union, US Army and US Navy recruitment offices, Medical Diagnostic Imaging and Board Game Barrister lease about 96% of the 32,000 square foot Greenfield Towne Center. The neighborhood center, developed in 1995, is located seven miles southwest of downtown Milwaukee.

Autumn Grove Plaza and TCF Bank is a three-building specialty center totaling about 29,000 square feet. TCF Bank, Commerce State Bank, Wisconsin Vision, Wine Cellars of Wisconsin, Elements Therapeutic Massage and Tom+Chee's restaurant occupy 100% of the center. The center was developed in phases, the TCF building in 1981 and the two additional buildings in 2005.

Next Realty has identified one more center it plans to acquire with the VIII fund. After that, Zaslavsky says “we will gear up to raise capital for our next fund.”