2900 S 163rd Street

The Opportunity

2900 S 163rd Street is a 54,850 SF, 100%-leased two-tenant zero-column industrial building in the Moorland Industrial Park, New Berlin, WI (Milwaukee MSA). The asset was sourced direct off-market — no listing broker on the buy-side, no competitive bid process — with an LOI submitted to ownership on 5/21/2026 at $3,600,000 ($65.63 PSF), inclusive of a proposed $200,000 fixed seller roof credit at closing that would drive the effective basis to ~$62 PSF. Seller response is pending.

The going-in cap on Year 1 NOI of ~$274K is ~7.6% on the contract price (~8.0% net of the roof credit). The most important structural piece of the trade is a closing condition under which the Gordon Services tenant exercises its first 10-year extension option early — locking 47% of the building through 6/30/2041 at $5.70 PSF NNN with 2% annual escalations, backed by an existing personal guaranty of Richard Gordon.

Building & Site

2900 S 163rd is a 54,850 SF zero-column industrial building constructed in 1971 in the Moorland Industrial Park — an established institutional industrial node in the Brookfield/New Berlin submarket with direct access to I-94 and I-43. The functional configuration is the headline feature: no interior columns, 19' eave / 38' center clear height, 400-amp 3-phase power, two demisable 25,920 SF bays, and ~5,740 SF of office on two floors. The building has been owned by LCM Funds since 2018 and is in good operating condition; the 25-year original metal roof is the one identified capital item and is being addressed through a fixed $200,000 seller credit at closing.

Rent Roll & Lease Posture

The rent roll is anchored by Gordon Services, Inc. — held in place through a personal guaranty of Richard Gordon and locked through 6/30/2041 as a closing condition via the early exercise of Gordon's first 10-year option. The second tenant, GWI Ventures, has been in occupancy since 2019 (currently on the third amendment of its lease) and is paying $4.90 PSF NNN against a $8.30 PSF submarket asking average. The simplicity of the rent roll — two tenants, two leases, both true NNN — is a feature of this deal, not a constraint.

Building Walkthrough

Functional Layout & Construction

• Zero interior columns — an uncommon configuration in the size class that opens the building to a meaningfully deeper tenant pool (warehouse, flex, light manufacturing, last-mile, indoor recreation).
• 19' eave / 38' peak clear height — supports racked storage and tall-product staging without the cost premium of a modern 32'+ clear box.
• Two near-symmetrical 25,920 SF bays (north / south) plus ~5,740 SF of office on two floors — already physically demised, with no demising work required to maintain the current two-tenant configuration.
• Metal / insulated construction; 400-amp 3-phase electrical service — meets the power profile of nearly every realistic industrial use case in the size class.

Roof — Defined, Negotiated Capital Item

• Original 1971 metal roof — identified as the one named capital item in the deal.
• $200,000 fixed seller credit at closing in lieu of escrow or holdback — not subject to inspection results, contractor bids, or further negotiation. This is the buyer's full and final remedy on the roof.
• Effective basis after credit: ~$62 PSF. Underwriting approach is to use the credit as a partial offset against an eventual full membrane replacement within the hold — with the balance reserved out of cash flow.
• Pre-closing roof consultant inspection recommended during the 45-day DD to lock the timing assumption for full replacement.

Site & Loading

• 2.88 acres — tight, efficient site footprint with 69 surface parking spaces.
• Direct access to I-94 (north) and I-43 (east) — same logistics connectivity that drives the broader Brookfield/New Berlin submarket's 1.7% vacancy rate.
• ALTA survey notes a ~21' building encroachment over a utility easement — a title carve-out / estoppel item to confirm during DD, not a deal-killer.
• M-1 Light Manufacturing zoning — permits the existing use and substantially all realistic alternative industrial uses.

Value-Add Path

• Embedded 2% annual escalations on the Gordon early-extension provide a contracted growth profile through 2041 on 47% of the building.
• GWI rollover in 11/2030 is the primary mark-to-market lever — bringing $4.90 PSF in-place to market over a single lease cycle, against an $8.30 PSF submarket asking rate.
• Roof replacement during the hold removes the single remaining functional risk and meaningfully widens the buyer pool at exit.
• Wisconsin RE tax reassessment on transfer — refresh the 2027 basis assumption during DD and underwrite NNN pass-through impact.

Rent Roll vs. Submarket

In-place rents are ~40% below the Brookfield/New Berlin submarket asking average. The Gordon early-extension caps the upside on 47% of the building at a contracted 2% annual growth profile through 2041, which is the right trade for a 15-year locked, personally-guaranteed cash flow stream. The buyer's mark-to-market opportunity sits squarely with the GWI rollover in 11/2030.

*Gordon WALT and term shown reflect the early exercise of the first 10-year extension option as required closing condition (term extended to 6/30/2041 at $5.6981 PSF with 2% annual escalations). Submarket asking rents per CoStar Q2 2026.

Brookfield/New Berlin Industrial

Brookfield/New Berlin is a ~15.8 million SF industrial submarket within the Milwaukee MSA, sitting at the western edge of the metro along the I-94 corridor. The CoStar Q2 2026 submarket report shows submarket vacancy at 1.7%, against a 5-year average of 0.9% and a 10-year average of 1.5%. Submarket asking rents are $8.30 PSF, with rents up 1.8% year-over-year against a Milwaukee market average rate of $7.70 PSF. There is currently zero industrial space under construction in the submarket; the metro-wide under-construction pipeline of 1.3 MSF is roughly 95% pre-leased build-to-suit.

Submarket Sale Comps (CoStar, Trailing 12 Months)

The deal prints below the submarket's bottom quartile on a per-SF basis — the result of being sourced direct off-market rather than through a competitive bid process.

Aerial Video

Drone footage of 2900 S 163rd Street showing the building footprint, both 25,920 SF bays, surface parking, immediate Moorland Industrial Park context, and connectivity to I-94 / I-43.

Drone Photos (26)

Aerials of the building, roof, parking, both bays, and broader site context within the Moorland Industrial Park. Click any tile to open the full-resolution image.

Interior & Exterior Photos (16)

Photos of both bays, office finishes, exterior elevations, and operational details of the property.

Investment Thesis

2900 S 163rd Street fits the Summit Midwest industrial profile: 1970s-vintage, functional industrial product, in a supply-constrained submarket, with credit and term durability secured at closing, acquired off-market at a basis below the submarket's bottom quartile. The Gordon early-extension closing condition, backed by an existing personal guaranty, is the single most important structural feature of the trade — it converts a routine 2031 expiration into a 2041 locked cash flow stream on 47% of the building before we own it.

GWI's $4.90 PSF in-place rate against an $8.30 PSF submarket asking average is the buyer's mark-to-market opportunity — with ~4.5 years of term to plan the rollover and a 1.7%-vacancy submarket with no spec supply being delivered into it.

Deal Economics

How The Deal Works

• Lock the Gordon early-extension at closing. The amendment is non-negotiable as a closing condition — converts 47% of the building into a 15-year, escalating, personally-guaranteed cash flow stream.
• Take the roof credit as cash at closing. $200K fixed, no escrow, no holdback. Drives effective basis to ~$62 PSF and removes the only meaningful inspection-stage risk.
• Plan the GWI rollover early. ~4.5 years to either retain the tenant at a mark-to-market rate or reposition the north bay against $8.30 PSF submarket asking rents.
• Underwrite the full roof replacement in the hold. Use the $200K credit as a partial offset and reserve the balance out of cash flow over the first 24 months.
• Confirm WI tax reassessment math in DD. Refresh the 2027 NNN pass-through assumption based on transfer-driven reassessment.