Chicago-based developers R2 Companies, in a joint venture with Polsky Holdings, acquired the downtown Milwaukee U.S. Postal Service building property, one of the city's largest buildings, for $13.05 million. The 1.1 million-square-foot building at 341 W. St. Paul Ave. was put on the market this past May, listed for sale with a $12.8 million asking price. Milwaukee brokerage Barry Cos. arranged the sale on behalf of the seller, Menomonee RP LLC, who purchased it for $16 million in May 2007; terms of the deal were not disclosed.
Matt Garrison, managing principal of R2 Companies, said the roughly 1-million-square-foot building on West St. Paul Avenue is among the "largest, most meaningful redevelopment sites in Milwaukee." Besides renovating the current building, the new owners could build 900,000 square feet of new space on neighboring vacant land, or in a vertical expansion, he said. The Postal Service leases the massive building and its current term lasts about five more years, with options for lengthy extensions. However, whenever the Post Office may move out, there is a major redevelopment potential, according to Garrison.
"This is one of the largest investment-development transactions in southeast Wisconsin in 2015 and indicates the continued interest in the downtown Milwaukee market," Jim Young of The Barry Companies said in a statement. The 9.3-acre site has significant frontage on the Milwaukee River. On the opposite bank is the Harley-Davidson Museum, and city planners have floated the idea of a pedestrian bridge over the river at that point. The city's long-range downtown plan calls for the building's redevelopment into something different, including potentially housing, a hotel, office, or retail.
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