Court Approves Sale Of 100 East Building
Originally published in Urban Milwaukee.
Milwaukee County Circuit Court Judge Christopher Foley approved the proposed sale of the 100 East office tower to a partnership of Klein Development and Johnny Vassallo. The partners would pay $28.75 million for the 35-story office tower and its parking structure with an ultimate plan of redeveloping the building into 350 apartments. They have already deposited $2.5 million in earnest money.
The purchase is to be completed May 2, with the remaining tenants to relocate to other buildings.
A foreclosure suit was initiated against the building’s owner, California-based Hertz Investment Group, in 2021. The tower is more than half empty, with Marcus Corp. and Gruber Law Offices representing the two largest remaining office tenants. The desirability of the building for office use has declined as new buildings have featured more natural light, more-efficient floor plans and more tenant amenities.
The Klein-Vassallo partnership was selected from eight bidders. Court documents reveal that Patrick Gallagher of CBRE oversaw two rounds of bidding, narrowed the field to three and then gave the other two remaining parties a chance to outbid the Klein price. No one did. The partners were selected in November and have negotiated the terms of the deal in the ensuing months.