November 9, 2018
A venture of R2 Companies and Skydeck LLC has acquired a creative office portfolio in Minneapolis and Milwaukee totaling more than 525,000 square feet. The venture paid over $60 million for five historic properties in Minneapolis’ emerging Northeast Arts District and The Tannery (pictured) in the Walker’s Point submarket of Milwaukee.
The acquisition includes approximately 30 acres of land across both markets. The Milwaukee property is wholly- located within an Opportunity Zone.
“Creative office tenants demand non-commodity space,” said R2 CIO Max Meyers. “This is difficult to replicate in traditional office towers. This portfolio includes some of the most striking buildings in each of these markets.”
The portfolio was 95% leased upon acquisition, with in-place rents that are, on average, 40% below market. R2 plans significant improvements. The R2/Skydeck venture has previously acquired properties in both markets, as well as the former Morton Salt factory in the firms’ native Chicago.
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