Zilber sells downtown U.S. Bank office for $11.2 million

A Zilber Property Group affiliate sold the Lewis Center office in downtown Milwaukee for $11.2 million to a Chicago investor a month after renewing U.S. Bank’s lease for the building.

The property includes the entire block south of East Michigan Street between North Jackson and North Van Buren Streets, including surface parking south of the office building. An affiliate of Chicago-based Oak Street Real Estate Capital bought the office on Oct. 9, according to state records.

U.S. Bank on Sept. 10 renewed its lease to occupy the 110,000-square-foot building, said Bill Bonifas, executive vice president of CBRE Group Inc. Bonifas represented U.S. Bank in the lease negotiations.

U.S. Bank plans to invest $3.5 million on improvements to the Lewis Center, said Joseph Ullrich, vice president in U.S. Bank’s Corporate Real Estate division. The lease extension will last another dozen years, he said. U.S. Bank also helped finance the deal, he said.

Oak Street Real Estate is expanding its presence in southeast Wisconsin through similar office investment deals. In each case, Oak Street buys the office and continues to rent it to existing tenants. An Oak Street affiliate was the buyer in the $65 million sale of American Transmission Co.’s Pewaukee office in July 2012. Interstate Partners LLC and Zilber Property Group, Milwaukee, sold that building. Oak Street also bought United Heartland’s New Berlin office from Irgens, in Wauwatosa, for $12.8 million in September.

View source version on Milwaukee Business Journal: http://www.bizjournals.com/milwaukee/blog/real_estate/2013/10/zilber-sells-downtown-us-bank-office.html

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