Overview
Colliers is pleased to present the opportunity to acquire South Milwaukee Industrial Campus, a 500,536 square foot infill manufacturing complex located in suburban Lake Michigan shoreline community of South Milwaukee, Wisconsin (Milwaukee MSA). The Portfolio is comprised of four industrial manufacturing buildings that are 89.71% leased to six tenants with a weighted average lease term of 6.00 years. The industrial/manufacturing buildings boast numerous bridge cranes throughout with capacities up to 100 tons, high bay clear heights up to 40’, Union Pacific rail lines entering the two largest manufacturing buildings, secured fenced yard, heavy power throughout, IOS value creation opportunities and more.
The Offering represents the opportunity to acquire a critical mass manufacturing facility in a metro area with limited available competing properties. The attractive WALT of 6.00 years and committed tenancy provides a new investor the benefit of an outstanding income stream with the ability to increase yield through future mark-to-market rents in a community built around the campus.
Investment Highlights
Mission Critical Campus with Scarce Amenities
• Long-standing manufacturing campus with four buildings totaling
500,536 SF.
• Extremely rare abundance of cranes with capacities up to 100 tons, high bay clear heights up to 40’ clear and Union Pacific rail spurs available in two largest buildings
• Large site area allows for potential future value creation including
addition of industrial outdoor storage.
Committed Tenancy with Value-Add Component
• Nearly 90% occupied by six tenants with a desirable WALT of 6.00 years.
• Campus is headquarters for anchor tenant Steele Solutions (owned by private equity firm Wellspring Capital) with significant tenant investment in their premises and equipment.
• Below market lease rates in place and limited competing properties create value-add opportunity to mark-to-market.
Desirable Infill Location with Limited Competition
• Hard-to-find infill industrial manufacturing campus, near skilled labor and dense, safe, working-class neighborhoods
• Direct access to Interstate 94/41 via Rawson Ave (approximately 3.5 miles to interstate) and only 15 miles (20-25 minute drive time) from Microsoft’s new $3 billion data center (under construction)
• Extremely high barriers to entry due to scarcity of available land within this infill location
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