Milwaukee Center Sold for $60.5M

An affiliate of Associated Bank, a regional bank holding company based in Green Bay and the biggest bank headquartered in Wisconsin, has purchased the 28-story office tower at 111 E. Kilbourn Ave. for $60.5 million. The property was sold by Hub Milwaukee Center Properties LLC, a real estate investment trust registered in Wisconsin, according to state real estate records posted Tuesday. The city's assessed value for the property is $49.5 million. Terms of the deal and representation were not disclosed.

According to Philip Flynn, president and CEO, Associated will occupy a significant portion of the building when the lease on its current regional office expires in 2022. Approximately 320 Associated employees currently occupy 97,000 square feet of the Plaza East towers at 330 East Kilbourn. "Our purchase of this iconic, city-center building aligns with our efforts to become the city's hometown bank," Flynn said. "As a major corporate citizen, we're filling that role through our support of consumers and business clients, and through our strategic investments in new office locations, economic and cultural development initiatives, and affiliations with the Milwaukee Brewers, Marcus Center, United Performing Arts Fund and other community partners."

Built in 1988, the Milwaukee Center is a 373,000 square foot Class A office building, believed to be the sixth largest multi-tenant office property in downtown Milwaukee and the fourth tallest building in the state. The Milwaukee Center's construction was spurred by the Milwaukee Repertory Theater's purchase and subsequent selling of the land surrounding the former Wisconsin Electric Powerhouse which was converted into The Rep's primary performance venue, the Quadracci Powerhouse. The Milwaukee Center's rotunda connects the office tower with the Inter Continental Hotel Milwaukee and the historic Pabst Theater.

Flynn said the purchase of the building does not signal an intention to move Associated's headquarters to Milwaukee from Green Bay. "We have no plans to move the headquarters of the company," he said. There is more than $1 billion in development under way in downtown Milwaukee, including the $450 million corporate headquarters being built by Northwestern Mutual, according to a Milwaukee Business Journal article. In addition, the Milwaukee Bucks will soon start construction on a new $500 million arena and $500 million in adjoining development, including a practice facility and a multi-use parking structure.

For more news and information visit Blumberg Partners.