MADISON, WI—A joint venture of Alex. Brown Realty Inc. and Fulcrum Asset Advisors LLC has purchased the U.S. Cellular office building here for a reported $8.2 million.
The four-story, 101,925-sq.-ft. building is at 5117 West Terrace Drive, the southwest corner of American Center Office Park. The building is about 80 percent occupied, with the namesake leasing 74,717 sq. ft. Saint Paul, Minn.-based Advantus Capital Management provided first mortgage financing for the transaction.
Thomas Cox, a principal at Fulcrum, said the JV expects to lease up the remaining space within the next two years. “This was a great opportunity to purchase a strategically located 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,” Cox said in a statement. “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,” saidTom 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.”