Majestic Realty Buys 228-Acre Wisconsin Development Site
- Oct 02, 2017
Acting on behalf of Rime Investments LLP, Transwestern recently orchestrated the sale of the former Dairyland Greyhound Park, a 228-acre site in Kenosha, Wis., to Majestic Realty Co. All parties involved in the Southeastern Wisconsin trade are remaining mum on the transaction price.
The investment community was more than a little keen on the opportunity at 5522 104th Ave. “The response was robust since this was a well-known site along the I-94 expressway with an interesting past,” Tom Boyle, principal with Transwestern, told Commercial Property Executive. “This site, located at the expressway and Route 158, is regarded as the ‘50-yard line’ between Chicago and Milwaukee.”
Transwestern conducted a targeted pre-marketing program and within one week of launching formal marketing, the firm received seven legitimate offers warranting vetting. After a month’s time, three finalists were in place, and the lead offer soon came to the fore. The property, most recently rebranded as the Midwest Innovation Center, can accommodate up to 2 million square feet of development, and infrastructure is already in place. And then there’s the market itself; the region’s industrial sector is faring quite well.
Southeastern Wisconsin rising
The second quarter of 2017 marked the 29th straight quarter of positive net absorption in Southeastern Wisconsin, and the average vacancy rate was below 5 percent across all submarkets, according to a report by commercial real estate services firm Colliers International. The cry for more space grows louder, spurred in part by the fact that supply trails demand, Boyle said, and economic conditions in Wisconsin versus Illinois have a little something to do with it, too. “Wisconsin’s fiscal health, particularly in the context of pension liability and state debt, is so comparatively favorable to Illinois that Wisconsin has a financial arsenal to attract employers that other states simply can’t compete with,” he added.
The new owner of the former Dairyland property plans to capitalize on the opportunities that come with strong market conditions. “Success begets success,” Boyle remarked, and companies like Foxconn Technology Group, which recently announced plans for a $10 billion manufacturing plant and technology campus in Southeastern Wisconsin, are shining a bright new light on the area. “Majestic is looking to take advantage of vendor/supplier activity that will follow the big manufacturers,” said Boyle. “The new park can accommodate a facility of more than 500,000 square feet, making it one of a very few number of sites that can handle a true big box. The highway infrastructure is terrific, the labor pool is deep, and the genial cost of living in Southeastern Wisconsin is favorable. The tax rates can be a little tricky, but in balance, the region is very well positioned to see continued success.”
Image courtesy of Transwestern