A10 Capital Lends $27M at Milwaukee Spec Office Redevelopment #North_WellsApril 21, 2019
Courtesy: North Wells CapitalMiddle-market lender A10 Capital has provided $27 million to North Wells Capital to finance the redevelopment of one of the firm’s speculative office buildings in Milwaukee, Wis., Commercial Observer has learned.
The three-year, interest-only bridge loan funds the redevelopment of North Wells’ Hub 640 mixed-use office building at 640 North 4th Street in Milwaukee’s Westown neighborhood, just west of the city’s downtown, as the name implies.
“Speculative office buildings in secondary markets like Milwaukee can be difficult to finance, but due to the strength of the sponsor and the property’s excellent location, Meridian was able to negotiate a favorable non-recourse loan for the borrower,” Carlson said in a prepared statement.
They were using the first two floors as a retail store and the next three stories as the corporate HQ.
The top four floors are residential.
North Wells purchased the asset in March 2017 for $25M from Wispark , a Milwaukee economic development non-profit, Fox said.
Photo: North WellsNorth Wells’ first objective was to create a formal lobby entrance, Fox said.
To get to the offices on the third floor, you used to have to enter through a connected [external] walkway on the third floor.
We’ve redone the bathrooms and added new elevators and we’ve done some work on the HVAC system.”
“The appealing part of this financing was the strong sponsorship and the borrower’s track record executing business plans, combined with the location of assets and the additional redevelopment that will create demand generators for the property,” A10 CEO Jerry Dunn told CO. “We did a significant amount of due diligence to make sure there would be demand, [vetting] the pipeline of leasing prospects the borrower had in tow and were comfortable with that.