Baltimore, MD – A joint venture owned by Alex. Brown Realty (ABR) and Fulcrum Asset Advisors, LLC (Fulcrum) has acquired the U.S. Cellular Building at 5117 West Terrace Drive in Madison, Wisconsin. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $3.1 million in the venture.
Built in 1997, the four-story Class A suburban office building consists of 101,925 sf and is located on the southwest corner of the American Center Office Park, the most prominent office park in the East Madison submarket.
The property is currently 73% occupied, with U.S. Cellular as the main tenant. U.S. Cellular leases 74,717 sf, occupying the entire first, second and third floors of the property. A 6,404 sf lease for the building’s fourth floor was executed prior to closing and will increase occupancy to 80% when the tenant takes occupancy in early April 2013. The joint venture expects to lease the remaining space over the next 18 to 24 months.
“This was a great opportunity to purchase a strategically located Class A office building with excellent visibility from Interstate 90/94, a quality tenant base, and a floor layout that easily lends itself to multi-tenant use,” stated Thomas Cox, a principal at Fulcrum. “The property’s location provides easy and direct access to the University of Wisconsin, the state capitol, the Dane County Regional Airport, and the University of Wisconsin Research Park.”
The joint venture represents ABR’s first investment in the Madison market. “We see very positive supply/demand indicators in the East Madison office market – brought about by the combination of no new supply since 2010 and steady economic growth,” commented Tom Burton, ABR’s chief investment officer. “In addition, we acquired the property at an attractive basis, which mitigates our downside risk and should allow for favorable returns for our investors.”
Saint Paul, Minnesota-based Advantus Capital Management provided first mortgage financing for the transaction.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Fulcrum Asset Advisors, LLC is a Chicago-based, privately held real estate investment and operating firm that specializes in making and managing investments in office and industrial properties. www.fulcrumllc.com