Bell Ambulance Anchored Multi-Tenant Industrial
- 5407 & 5501 West Mill Road, Milwaukee, WI 53218
- Property Type:
- Multi Tenant
- Cap Rate:
- 8.74% cap
- Square Feet:
- 41,224 sqft
- Lot Size:
- 2.48 Acres
- Price Per Square Foot:
- Year Built:
- 41,224-Square-Foot Multi-Tenant Industrial Building with Four Dock Doors and Three Drive-Ins
- Income-Producing Stabilized Asset with Staggered Rent Roll
- High Barrier-to-Entry Milwaukee Industrial Market 2.5% Vacancy
- Extremely High Rent Growth Location Up 11.19% Year-Over-Year
- New 10-Year Lease Signed with Bell Ambulance Wisconsin’s Largest Private Ambulance Co.
- Well Below Replacement Cost Per-Square-Foot Offering
- Located Less Than Five Miles from I-41 and I-43 the Area’s Two Main Corridors
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5407 to 5501 West Mill Road in Milwaukee, Wisconsin. The subject property consists of approximately 41,224 square feet of warehouse space and is situated on 2.48 acres of land. The multi-tenant asset features eight suites, four dock-high doors, and three drive-in doors. With 11,125 square feet of available space, this property can be acquired for partial owner use with immediate occupancy. A freshly signed 10-year lease with Wisconsin’s largest private ambulance company, Bell Ambulance, bolsters the cash flow of this investment. Furthermore, the sale offers investors a lease-up opportunity with staggered leases in place. Priced at about $62 per square foot, the property can be purchased well below replacement costs. Located less than a five-minute drive from Interstates 41 and 43, the property conveniently sits in between two of Milwaukee’s main corridors.
The subject property is positioned in Milwaukee Northwest, a tight barrier-to-entry submarket, containing a sizeable 35.1 million square feet of industrial space. As the metro’s largest submarket, Milwaukee Northwest has historically served as the center of manufacturing activity for the area. At 1.2 percent, Milwaukee Northwest’s vacancy rate was 140 basis points lower than the market average in Q2 2023. With supply limited and very little land available for development, construction activity has remained low and accounted for only 1.3 percent of the local inventory during this time. In fact, many of the area’s recent industrial developments have been conversions of vacant big box stores from retailers such as Target and Walmart. Supply constraints have pushed market rents up 10.8 percent year-over-year during Q2, only 20 basis points below the record high set in Q1 (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).