ASG Equities Buys Wisconsin Office Property

ASG Equities has acquired 7954-7974 UW Health Court in Middleton, Wis. The investor paid $39.11 million for the four-story, 197,860-square-foot office property in suburban Madison.

The University of Wisconsin Health Administrative Services fully occupies the property, which serves as one of UW Health’s administrative service office buildings, playing a role in its medical management, information services, compliance, and patient billing services. Recently, the university inked a new 20-year lease for the building.

The property is less than six miles northeast of the University of Wisconsin-Madison and UW Health University Hospital, a 505-bed facility that is part of the UW Health System. As a public health system, UW Health hasn’t been affiliated with the University of Wisconsin System since the 1990s.

SRS Capital Markets Senior Vice President & Principal John Redfield, and Lee & Associates Principal and Managing Director John Battle, represented the seller, a California-based private owner.

The property offers the new owner “minimal landlord responsibilities and included rare beneficial Credit Tenant Lease zero cash flow financing,” Redfield said in a statement, adding that CTL zero cash flow financing is often beneficial to investors because it allows them to acquire a property with minimal equity while relying on the strong credit of the tenant to support highly leveraged financing...