Nordic Realty Partners made a strategic investment in January 2018 by acquiring an office building located at 13303 Washington Avenue from an affiliate of Johnson Bank. Situated on Hwy 20, near I-94, this property held great potential due to its prime location at the premier intersection in Racine County and its immediate adjacency to the 156,000 SF industrial building leased by Foxconn in Mt. Pleasant Business Park. With these favorable factors in mind, Nordic Realty Partners saw an opportunity to capitalize on the growing demand in the area as a result of robust economic growth, corporate relocations, and the recently announced Foxconn manufacturing campus.
At the time of acquisition, 13303 Washington Avenue consisted of a versatile 10,430 SF office/retail building along with surplus land spanning 3.1 acres. Nordic Realty Partners recognized that the excess land was not essential for their investment strategy and promptly decided to sell it. This allowed them to focus on optimizing the existing building to maximize its potential as a multi-tenant investment property.
Shortly after acquiring the property, Nordic Realty Partners initiated an asset repositioning strategy, subdividing and converting the property from a single-tenant to a multi-tenant property. This pivot was designed to diversify the income stream and expand the tenant base, thereby reinforcing the property's financial resilience and market appeal.
The transformation process was carried out efficiently, and by August 2018, the property was fully leased,highlighting the strength of the location, the efficacy of Nordic's leasing efforts, and the property's appeal to a diverse range of tenants. This tenant diversification further de-risked the asset and elevated its attractiveness to potential future investors.
In January 2020, riding on the crest of strong demand for commercial properties in the region, Nordic Realty Partners made a strategic exit. The sale validated Nordic's investment approach and realized significant returns, demonstrating the value of their disciplined, value-add real estate investment strategy.
The sale of 13303 Washington Avenue marked a significant achievement for Nordic Realty Partners, as they were able to execute a well-planned investment strategy. Their decision to acquire the property in a promising location, capitalize on the proximity to the Foxconn manufacturing campus, and optimize the existing building by subdividing it into a multi-tenant space proved to be a successful endeavor.
Nordic Realty Partners' ability to identify market trends, leverage their knowledge of the local area, and make strategic decisions allowed them to unlock the full potential of the property. Their swift action in selling the excess land and creating a multi-tenant space ensured a high return on investment and attracted a diverse range of tenants.
Overall, the purchase, subdivision, and subsequent sale of 13303 Washington Avenue demonstrated Nordic Realty Partners' strategic insight, disciplined execution, and value creation capabilities. This successful investment not only generated significant returns for Nordic Realty Partners but also contributed to the economic growth and development of Southeastern Wisconsin.
Office Industrial Development
