HCI Acquisitions LLC, an affiliate of Greywolf Partners, has taken over ownership of a 118,072-square-foot building in the Honey Creek Corporate Center office park.
The property, at 125 S. 84th St., known as Honey Creek Corporate Center I, was sold by Geneva HC1X II, a group of tenant-in-common investors, which also included Greywolf.
HCI acquired the building for $17.25 million, according to state records. The building has an assessed value of about $14 million, according to city records.
“Honey Creek is a very notable and visible Milwaukee address,” said Tom Shepherd, of Colliers|Wisconsin, who represented the seller. “We’re seeing steady interest from investors all over the country for office properties in Wisconsin. The risk-adjusted yields are typically higher here compared to primary markets.
The change in ownership will make it easier to lease the space, said Jack Jacobson, principal NAI MLG Commercial, which manages the leasing for the Honey Creek Corporate Center II building at 115 S. 84th St.
Currently, the Honey Creek Corporate Center I building has 28,000 square feet of vacant space. Graef and Veolia Environmental Services are tenants in the building.
“This is really good for the office park,” Jacobson said. “They don’t have big blocks of space, like we do in building two so we will be competing for different tenants and now, with the freeway open, this will be a really good choice for tenants.”
Building two is currently in receivership and the lender, Hudson Real Estate, is in the process of foreclosing on the building, Jacobson said. That building, which is also 118,000 square feet has 60,000 square feet of vacancy.
