CH Coakley says it has acquired an industrial warehouse in Wauwatosa and will soon close on another in Milwaukee, both of which are needed for the company's expanding warehousing and third-party logistics services.
The Milwaukee-based office relocation and inventory storage provider on Monday finalized its purchase of the roughly 192,200-square-foot building at 1400 N. 113th St., Wauwatosa. It is also expected to close on Friday, Jan. 15, on the acquisition of a 375,000-square-foot building at 6101 N. 64th St., Milwaukee, according to a news release.
Steve Swanson, chief financial officer of CH Coakley, said his company paid $6.95 million for the Wauwatosa property. He did not reveal the purchase price of the Milwaukee property, as the sale isn't yet final.
The Wauwatosa building is assessed at roughly $5.07 million, according to city records. Its previous owner was an affiliate of Wauwatosa-based developer
Wangard Partners Inc. The Milwaukee building has an assessed value of nearly $4.94 million, according to city records. It is owned by T & M Industrial Properties LLC, which is registered to Milwaukee-area real estate investor Matt Ryan.
CH Coakley is open to using both new buildings for both warehousing and third-party logistics operations, Swanson said. Their ultimate use depends on the needs of the market and customers, he said.
In a statement, CH Coakley president and chief executive Mike Coakley said the space is needed to accommodate business growth and to relocate some inventory following the
sale of the former Gimbels and Schuster’s department store building at 2153 N. Dr. Martin Luther King Jr. Drive, Milwaukee. An affiliate of CH Coakley sold the building for $9.24 million, according to state records.
“Given the recent sale of our location on Garfield and Dr. MLK Drive, not only did we need to relocate client inventory but due to the expansion of our third party logistic services and need for additional warehouse space, the two new locations are ideal for the current and scheduled growth of our business,” Coakley said.
While declining to get into specifics, Swanson said the company is exploring new alliances that would in effect expand its business opportunities.
"We think the sky is the limit in 2021," he said.
CH Coakley is gaining about 100,000 square feet of total usable space between the King Drive building sale and the acquisition of the two new buildings, Swanson said.
In fact, the sale of the King Drive building assisted CH Coakley in the purchase of the two new buildings. Swanson said proceeds of that sale went toward the other acquisitions.
"We're reinvesting back into the community from the proceeds of the MLK Drive sale," he said.
The Gimbels and Schuster's building was recently purchased by Milwaukee-based developer
Royal Capital Group, as part of plans to redevelop the 455,000-square-foot building into offices, early-childhood educational programming, health and wellness space and affordable apartments.
It will also serve as the headquarters of the ThriveOn Collaboration, a partnership between Royal Capital, the Greater Milwaukee Foundation and the Medical College of Wisconsin.
Swanson said CH Coakley is maintaining an office presence there. It has about 12,000 square feet, which will be redeveloped along with the rest of the building. He said the company likes the building's location and wants to remain a presence close to downtown Milwaukee, especially since some of its customers are located there.
