A historic downtown Milwaukee office building has been sold for $17.4 million, which is more than $10 million less than its assessed value of about $28.1 million. Located at 735 N. Water St., the building known as CityCenter735 was sold by an affiliate of Stevens Point-based Compass Properties, which purchased the property in 2002. Compass
A historic downtown Milwaukee office building has been sold for $17.4 million, which is more than $10 million less than its assessed value of about $28.1 million.
Located at 735 N. Water St., the building known as CityCenter735 was sold by an affiliate of Stevens Point-based Compass Properties, which purchased the property in 2002.
Compass sold the building to an affiliate of North Riverside, Illinois-based company E.A. Staples & Associates, according to Wisconsin and Illinois state records.
Led by Gene Staples, E.A. Staples is a boutique commercial real estate firm with a focus on unique commercial value add acquisition opportunities, Staples' LinkedIn page says.
Originally built in 1912, 428,000-square-foot class B office building has around 135,000 square feet of space available, according to the most recent data available from Moody's.
Tenants at CityCenter735 include CIBC Bank USA, Kohn Law Firm and Forefront Dermatology, among others.
The sale also included the 76,000-square-foot building at 731 N. Water St., which has Gold's Gym as its primary tenant. Built in 1952, that building has an assessed value of about $5.8 million, according to city records.
As part of the ownership change, Gold's Gym will be transformed into an athletic and social club called East Bank Athletic and Social, according to a message to Gold's Gym members obtained by BizTimes.
[caption id="attachment_596586" align="alignleft" width="300"] 731 N. Water St. Image from Google.[/caption]
"With increasing residential growth downtown, East Bank Athletic and Social aims to become a one-stop-shop for fitness, strength and social connectedness," the message says. "They aim to maintain the roots of Gold's Gym, while adding amenities to heighten your overall experience."
Existing members of the gym will be converted to members of the rebranded club at their current rates, and pricing will remain consistent, the message says.
The firm's other entertainment-focused properties, include amusement parks, campgrounds and resorts, which are under an entity called IB Parks & Entertainment, according to Staples' LinkedIn.
Staples could not immediately be reached for further comment on the firm's plans for the buildings.
Multitenant class B properties in the downtown east submarket, which is where the CityCenter735 building is located, had a 26% vacancy rate in the second quarter, according to Moody's, compared to 22% vacancy for all office properties in the downtown east submarket.
CityCenter735's parking garage, located across the street at 734-746 N. Water St., was also sold by Compass Properties to the same Illinois-based entity in a separate transaction for $1.7 million, state records show. Built in 1928, the parking structure has an assessed value of about $3.4 million, according to city records.
Compass Properties did not immediately respond to requests for comment.
An early Milwaukee skyscraper designed by Chicago architectural firm D.H. Burnham and Co., the CityCenter735 building was originally built as the headquarters of First Wisconsin Bank, according to the Wisconsin Historical Society.
