Marcus & Millichap is pleased to present the opportunity to acquire the property located at 7325 West Fond Du Lac Avenue in Milwaukee, Wisconsin, occupied by the current owner. The subject property consists of approximately 15,000 square feet of automotive repair space and is situated on 0.91 acres of land. The multi-tenant asset features six drive-in doors, brick construction, 30 parking spaces, and clear heights ranging from 14’ to 18’. The current owner operates both the anchoring tenant, DJ’s Transmissions, and the company’s subsidiary, Milwaukee Muscle Cars & Restoration. Upon the sale of the property, both tenants plan to execute a five-year leaseback at $6.75 per square foot with 3.0 percent annual escalations. On sale for $63.33 per square foot, investors have the opportunity to acquire an in-demand asset at below replacement costs.
Located on a high-traffic count street, the property sits within five miles of Interstate 43 in the Milwaukee Northwest submarket. Containing 35.4 million square feet of industrial space, Milwaukee Northwest is a relatively large submarket. Like the overall market, availability has remained tight for much of the last decade, and in Q3 2023, the vacancy rate stood at just 2.2 percent. The historically low vacancy rate has allowed rent growth to remain near record highs, up 7.3 percent year-over-year in Q3. After experiencing the lowest quarter on record with net absorption contracting by over 580,000 square feet in Q2, demand rebounded with one of the best quarters of the last decade in Q3, rising over 300,000 square feet. With only about 420,000 square feet of industrial space under construction (representing just 1.2 percent of inventory), vacancies and rent growth in Milwaukee Northwest will be unaffected by new supply for the foreseeable future (CoStar).
Metro Milwaukee, which includes the counties of Milwaukee, Ozaukee, Washington, and Waukesha, is home to nearly 1.6 million residents, with approximately 590,000 living within city limits. The region is transforming from its manufacturing roots to a more diversified economy with a growing healthcare and technology sector. The lower cost of doing business compared to Chicago is attracting new employers to the metro, which already hosts six Fortune 500 firms. Major employers in the area include Northwestern Mutual Life Insurance Company, Aurora Health Care, Kroger Company, and Kohl’s Corp. Thanks to the ten universities in close proximity to Milwaukee, the region benefits from a skilled labor pool, with two-thirds of residents ages 25 and older having some college education. With two major league teams, its position along Lake Michigan, and several museums and attractions, residents of metro Milwaukee enjoy a high quality of life (Marcus & Millichap).
BROKER OF RECORD
Todd Lindblom
Wisconsin Broker of Record
13890 Bishops Dr., Ste. 300
Brookfield, WI 53005
Tel: (262) 364-1964
Todd.Lindblom@MarcusMillichap.com
License #: 56163-90
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0370474)
