Strategic Retail Acquisition and Value-Add Investment in Brookfield
Capitol East Plaza is a 36,387-square-foot, three-building commercial retail property located along Capitol Drive in Brookfield, Wisconsin. General Capital acquired the property in June 2014, recognizing an opportunity to enhance its value through strategic leasing and active asset management. Anchored by Warren Barnett, a longstanding tenant since 1998, the center benefits from prominent visibility and convenient access along one of Brookfield's established commercial corridors. At acquisition, approximately 8,185 square feet of vacant space presented an opportunity to attract additional tenants and strengthen the property's operating performance.
General Capital implemented a value-add investment strategy focused on leasing opportunities, operational efficiency, and long-term asset performance. Following nearly four years of ownership, the property was sold in 2018, generating a 44.60% gross internal rate of return and a 3.36x gross equity multiple. Net investor returns included a 27.80% internal rate of return and a 2.30x equity multiple. The successful disposition demonstrates General Capital's ability to identify commercial investment opportunities and execute disciplined asset management strategies that generate substantial investor returns.
Key Themes
- Strategic retail acquisition targeting value creation through active asset management.
- Prime Brookfield location offering strong visibility along Capitol Drive.
- Established anchor tenant providing long-term leasing stability.
- Value-add investment strategy focused on leasing vacant commercial space.
- Disciplined investment execution positioning the property for profitable disposition.
Results
- 36,387 SF retail property acquired in June 2014.
- 8,185 SF leasing opportunity identified at acquisition.
- 44.60% gross IRR and 3.36x gross equity multiple achieved.
- 27.80% net IRR and 2.30x net equity multiple delivered.
- Successful 2018 disposition completed after nearly four years of ownership.