Press Releases
CANYON-JOHNSON URBAN FUND AND BOULDER VENTURE ANNOUNCE SALE OF MILWAUKEE'S MIDTOWN CENTER AFTER 3-YEAR REVITALIZATION EFFORT
MILWAUKEE, WI (Feb. 7, 2005) - A partnership of Canyon-Johnson Urban Fund and Boulder Venture LLC has sold Midtown Center in Milwaukee to Inland Western Milwaukee Midtown LLC. The sale comes on the heels of a dramatic revitalization of the site since the partnership purchased the property, formerly known as Capitol Court, in February 2001.
Since the acquisition in 2001, the Canyon-Johnson/Boulder Venture partnership demolished the mall and developed 454,000 square feet of new retail space in its place. Today, Midtown Center is now approximately 98 percent leased, with retailers including Wal-Mart, Pick 'n Save, A.J. Wright, Footlocker, Kids Footlocker, One Price Clothing, Payless Shoes, Milwaukee Police Department, T-Mobile, Cousins Subs, Concordia University, Starbucks, Applebee's and Pizza Hut, Culvers, Ashley Stewart, Rainbow Apparel and Firestone. At the time of purchase in 2001, Capitol Court was approximately 23% leased.
More than 500 jobs have been created with the completion of the first phase of the project.
"The revitalization effort at Midtown Center is consistent with Canyon-Johnson's mission of funding value-oriented opportunities in urban America and providing economic opportunities for local residents," said CJUF Managing Partner Bobby Turner.
The first Lowe's Home Improvement store in the state of Wisconsin, which recently opened at Midtown Center, was not included in this transaction.
Through a public-private partnership with the City of Milwaukee, a $6.5 million Tax Incremental District (TID) Grant was provided for the development of Midtown Center. Capitol Court's tax assessment on January 1, 2001, was $6,205,000. The assessment as of January 1, 2004, was $34,359,700, which exceeded the projected assessment by nearly $2 million.
"Taking down Capitol Court and creating Midtown Center epitomizes the power of a team effort in a real estate project," said Boulder Venture President Robert Schmidt. "Everyone involved helped convince the skeptics that there was an opportunity for thriving retail in this area. Midtown Center is successful for not only the developers, but also the City of Milwaukee, the retailers and the neighborhood."
The CB Richard Ellis Shopping Center Investment Team of Oak Brook, Ill., and the Polacheck Company of Milwaukee brokered the sale of the center with legal counsel by Singerman, Mills, Desberg & Kauntz Co. in Cleveland and Godfrey & Kahn in Milwaukee. The transaction closed Jan. 11, 2005.
The Canyon-Johnson Urban Fund is a special purpose closed-end real estate fund managed by Canyon-Johnson Realty Advisors LLC, a partnership between Canyon Capital Realty Advisors LLC and Johnson Development Corporation. The Fund's investment strategy is to identify, enhance and capture value through the acquisition, development, redevelopment and repositioning of urban real estate and the origination of mortgages secured by urban real estate. In addition to meeting its investment objectives, the partnership expects to provide and foster economic opportunities for the under-served residents of the urban neighborhoods in which it invests.
Boulder Venture is a Milwaukee-headquartered real estate development firm specializing in ground-up development of retail, office and senior housing facilities.
Inland Western is part of The Inland Real Estate Group of Companies, Inc. (www.inlandgroup.com), which comprises independent real estate investment and finance companies doing business nationwide. With more than 30 years of experience specializing in acquisition, auctions, commercial real estate brokerage, investments, property management, land development and mortgage lending, Inland is one of the nation's largest commercial real estate companies. Inland's national headquarters is in Oak Brook, Ill.
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Media Contacts:
Steve Sugerman
310-689-7535
steve@sugermangroup.com
www.sugermangroup.com
Robert Schmidt
Boulder Venture LLC
414-271-5385
