A joint real estate fund formed by commercial mortgage lending specialists Innovative Capital Advisors (ICA) and Chicago-based HSA Commercial Real Estate, a full-service real estate firm, has closed on the acquisition of the 114,000-square-foot Wauwatosa Business Plaza industrial building located at 3031 N. 114th St. in Wauwatosa, Wis. The high-clear warehouse facility is adjacent to the former Schwaab stamp factory that was purchased by the same partnership earlier this year.
Both the former Schwaab property and the Wauwatosa Business Plaza building are located immediately east of a full interchange with Highway 45 at Burleigh Street. They share a lighted intersection with The Mayfair Collection, a 270,000-square-foot retail shopping center anchored by Nordstrom Rack and Saks Fifth Avenue OFF 5TH. The Mayfair Collection’s construction consisted of adaptively repurposing functionally obsolete warehouse buildings along Highway 45 into new, contemporary retail environments. The project’s second phase, which is currently under construction, will be anchored by a Whole Foods Market. Scheduled to open Feb. 1, 2016, the grocery store will be housed in a converted warehouse building at the northeast corner of Burleigh Street and 112th Street.
The Wauwatosa Business Plaza is currently 50 percent occupied by warehousing tenants including a Habitat for Humanity ReStore donation center and resale shop. Given the existing tenancies at the property, HSA Commercial and ICA do not have any immediate redevelopment plans.
“With the success of The Mayfair Collection and the continued transformation of Burleigh Street from a lifeless industrial corridor to a vibrant mixed-use district, our newly acquired properties represent strategically significant touchpoints that will define perceptions of this area for visitors and future residents,” said Tim Blum, executive vice president with HSA Commercial. “For that reason, we need to ensure that these assets are managed over the long term such that they contribute to the city’s ambitious vision for The District.”
In June 2013, a separate joint venture between ICA and HSA Commercial acquired Plaza 173, a 92,000-square-foot shopping center in neighboring Brookfield, Wis., where the partnership plans to break ground in August on a full-scale redevelopment anchored by Fresh Thyme Farmers Market.
James T. Barry III, J.D, CCIM; Kevin Barry, CCIM; and David Barry, CCIM, SIOR of DTZ Barry represented the seller of the Wauwatosa Business Plaza in the transaction.
About “ICA Real Estate Equity Fund I”
ICA, an advisor to national institutional lenders, partnered with HSA Commercial in 2011 to launch “ICA Real Estate Equity Fund I”, a $50 million investment fund seeking acquisition opportunities across the Midwest. The fund managers are presently seeking real estate assets under $10 million in all property types (excluding hospitality) in markets throughout the Midwest. The Fund is focused on existing, income-producing properties located within high barrier to entry, in-fill markets. HSA Commercial Real Estate provides expertise in acquisitions, finance, management, leasing, and due diligence for these properties. The partnership is planning a series of funds to be implemented in the next five to ten years as the group continues to attract capital from insurance companies, pension funds, and high net worth investors.
About Innovative Capital Advisors
Innovative Capital Advisors was formed in 2003 to offer insurance investors access to the commercial mortgage loan market. ICA has originated over $350,000,000 of loans in 41 states and specializes in the small loan niche; loans under $3,000,000.
About HSA Commercial Real Estate
Founded in 1981, Chicago-based HSA Commercial Real Estate is a diversified, full-service real estate firm specializing in office, industrial, retail and health care real estate leasing, management, marketing, development and financing on a national basis. Along with developing and acquiring more than 50 million square feet of commercial real estate across the United States, with a total consideration in excess of $2.5 billion, HSA Commercial Real Estate has represented owners and tenants in more than 10,000 transactions in 43 states; manages a property portfolio in excess of 16 million square feet in locations across the nation; and owns more than 16 million square feet of commercial property in 14 states.
A joint real estate fund formed by Innovative Capital Advisors (ICA) and HSA Commercial Real Estate has acquired the 114,000-square-foot Wauwatosa Business Plaza industrial building in Wauwatosa, Wis. (Credit: CoStar)