REAL ESTATE NEWS

Q3 2024 Newsletter

What Are CAP Rates?

When evaluating a property, especially one that would interest an investor, CAP (capitalization) rates are one method we use to help understand an investors’ rate of return on their investment. CAP rates are important because they can provide a look at the initial risk of a potential investment property. The formula puts a property’s net operating income in relation to the potential purchase price. This value method is done by using the current income in place, or rental rates we have been seeing in the current market for like-kind properties for any vacancy related to the property. This rate of return is based on an all cash (pre-mortgage) purchase.

Although these numbers may sound simple, they are determined by using several components. One component being the most important: rental rates. Rental rates ultimately determine your net operating income (NOI), which highlights your rate of return for an investment. It is important to know that the term of a lease play a huge role in the rate of return as well. The longer the lease term a tenant is willing to commit to, the less risk an investor undertakes, therefore, supporting a higher price for the asset. Other factors that affect the CAP rate can be location, the quality of the tenants, the type of property, the condition/age of the property, and current interest rates. When it comes to evaluating the CAP rate for a property, there is never a “one size fits all”. Each building is unique and requires consideration of all these factors and more.

~Luke Russell, Sales Agent

Greater Milwaukee (Q3 2024) Reports

Local Market Industrial Report

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Local Market Office Report

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RECENT DEALS

From Judson & Associates, S.C

Determination and Leadership Brings Success

A contractor group reached out to Colleen Geiger of Judson and Associates, s.c. to assist them in looking for an industrial building to purchase in the greater Hartland Area. After scouring the market without finding success, Colleen remained determined in the search and proactively contacted local owner’s whose properties could match what her Buyer needed. Colleen was able to connect with a local property owner who was considering selling his building in Nashotah. After providing the owner with an up-to-date Opinion of Market Value for his property and then coordinating a tour for her Buyer a match was made! Once under contract there were some unforeseen obstacles that arose but with Colleen’s strong communication and leadership the sale transaction closed. Congratulations!

The Best Compliment is a Referral

In a business strongly built on relationships, it is always a huge compliment to gain a referral. A leading commercial lender came to Matt Judson with a referral to assist his client in identifying space to lease for the client’s company, Berg Development. Over the course of 6 months many letters of intent were presented to Landlords and one offer was written with them all, unfortunately, not coming together for various reasons. As they say, “All good things come to those who wait.” A 5,900 SF space at 3330 Gateway Road in Brookfield became available and was what Matt and Berg Development had been waiting for! A lease was negotiated, and Berg Development is excited to have a larger space for their administrative team and a creative showcase area for clients to selected finishes. We wish Berg Development great success in their new space!

Bringing Buyers and Sellers Together in the Community

Judson and Associates, s.c. agents Cole Russell and Jarrod Murbarger had been working with R Plumbing in Watertown for a while, attempting to identify a space that would fit their needs. While canvasing the area, Cole and Jarrod were presented with the opportunity to list a building at 1223 Wakoka St in Watertown for sale. Being they were already working with R Plumbing the Seller agreed to allow them to be one of the first groups to tour the Property and it was a great fit for the Buyer! The transaction came together quickly. Congratulations to R Plumbing on your new Watertown location and to the Seller for being able to move his operations to a land he owned closer to home.

Patience Pays Off for Horizon Performance Technologies

Cole Russell and Matt Judson worked with Horizon Performance Technologies for over 2 years to find them a new home. Horizon had specific requirements that needed to be met and was in no rush to move, so patience and continued follow up was important. After constant communication about their exact needs over such a long span, Horizon’s exact needs were clear to Cole and Matt. Upon 955 Walnut Ridge Drive in Hartland coming on the market, Cole was able to get Horizon through immediately for a tour. Due to the market and the fit of the building, the buyer made an aggressive quick close offer with a shorted due diligence timeframe. Cole and Matt worked well under pressure and overcame some significant hurdles with the help of the listing agents. In the end, Horizon Performance Technologies was able to acquire a new home that they will be able to grow in! Congratulations to all involved.

A Strong Partnership

Matt Judson with Judson and Associates, s.c. has had the pleasure of working with PowerX over the past 8 years with their various commercial real estate needs. PowerX called upon Matt once again to assist them in finding a larger facility and allow for continued growth. After many tours the property at W232 N2960 Roundy Circle in Pewaukee fit all of their requirements. The Landlord was happy to work with PowerX to finish the space per their exact needs and they look forward to moving from a 6,800 SF space into their new and improved 16,879 SF space. We sincerely appreciate PowerX’s partnership and look forward to seeing their continued growth.

Sandwich Sisters Have a Permanent Home!

Colleen Geiger is thrilled to announce that the popular food truck “Sandwich Sisters” has purchased a great building in Eagle to renovate and make their own! Colleen enjoyed working with the Buyer group and is excited to have helped add vibrancy to downtown Eagle. Keep on the lookout for announcements on when their new space at 121-123 E Main Street in Eagle will be opening!

Hartland Multi-Tenant Building is Fully Leased!

Congratulations to Judson’s Colleen Geiger for helping Latched Lake Country in filling the last available office suite at 300 Cottownwood Drive in Hartland! Latched Lake Country is a great addition to a diversified list of Office and Retail Tenants and look forward to providing judgement-free, evidence-based lactations support in the Lake Country area and all of Southeastern Wisconsin. Visit Latched Lake Country for more information on their services.

Being Entrenched in the Market Pays Off for Buyers and Sellers

The New Berlin market is one of the most desired locations for many companies. Mike Judson and Matt Judson were working with a Buyer looking in the New Berlin area that was having difficulty finding the right property. Being entrenched in New Berlin market, Matt Judson was able to identify an off-market opportunity that, if the Buyers were open minded, could possibly fit. The building was smaller than the Buyers were initially looking for, but the parcel offered land on which the Buyer could expand onto, fulfilling all their needs. A bonus was having high visibility along Moorland Road! With quick work and fluid communication Matt and Mike were able to quickly facilitate an accepted offer between the Buyer and Seller and guide them through a successful closing.

New Properties For Sale or Lease

Judson & Associates is excited to Announce

3 Parcel Development Portfolio +/- 130 Acres

Prime Development Opportunity in Beaver Dam, WI

3 Parcels = +/- 130 Acres

Zoning: Commercial, Industrial and Agricultural

Includes the Beaver Dam Raceway

Frontage along Highway 151 and Access from State Road 33

Sale Price: $3,250,000

N51 W34911 E Wisconsin Ave, Okauchee

Exciting Investment Sale in Downtown Okauchee

Boasts a Well-Established Restaurant/Catering Business

Income from a 2nd Floor Residential Apartment

Zoning: B-2 Local Business District

Sale Price: $600,000

363 W Main Street, Waukesha

3,800 SF Retail Building for an Owner-User or Investment

Located in the Heart of Downtown Waukesha

Currently a Coffee Shop with Tenant Interested in Staying

Beautiful Outdoor Courtyard

Zoning: B2

Sale Price: $550,000

N57 W13302 Reichert Avenue, Menomonee Falls

7,456 SF Industrial Space Available for Sale

Electric: 3 Phase, 240v

2 – 12′ x 12′ Drive in Doors

Situated on .57 Acres

Zoning: I-2

Sale Price: $746,500

16950 W Lincoln Avenue, New Berlin

20,000 SF Industial Space for Lease

3 Dock Doors (1 with a Leveler, all with Enclosures)

Clear Height: 16′-19′ to Support / 18′-21′ to Deck

Lease Rate: $6.50 PSF NNN

+/- 16 Acres at 1431 S Rochester St, Mukwonago

16 Acres for Development Nestled Between the Newest Business Parks in Mukwonago

1/2 Mile South of 1-43 along Hwy 83

Sewer/Water Available

Call for More Information!

Sale Price: $165,000 Per Acre

323 W Sunset Drive, Waukesha

5,800 SF Industrial Building for Lease

Situated along Waukesha’s Busy Sunset Drive Corridor

3 – 10′ x 10′ Drive in Doors

Traffic Count: 15,000 Vehicles Per Day (WI DOT)

Zoning: B-3 General Business District

Lease Rate: $8.50 PSF Modified Gross

407 Pilot Court, Waukesha

3,148 SF Warehouse / Office Space for Lease

Suite 400 A

1 Shared Dock

Current Zoning: M-3 Limited Business and Industrial Part District

Just South of I-94 off and near the Waukesha County Airport

Lease Rate: $8.75 PSF NNN

3459 S Kinnickinnic Avenue, Milwaukee

1,385 SF Multi-Use 2 Story Building

Available for an Owner/User or Investor

Storefront for Your New Office or Retail Space

Second Floor 3 Bedroom / 1 Bathroom Apartment

Zoning: LB2 Local Business

One Car Detached Garage

Sale Price: $475,000