Strategic Retail-to-Industrial Conversion in Milwaukee, Wisconsin
In 2017, General Capital acquired a vacant 138,330-square-foot former Sam's Club on Milwaukee's northwest side from Walmart for $3 million, significantly below replacement cost. Recognizing the property's industrial potential, General Capital secured rezoning from retail to industrial use before closing and pre-leased the building to Sellars Absorbent Materials, an established Milwaukee manufacturer. The property offered high-bay loading docks, ample parking, prominent signage, and convenient transportation access, making it well suited for conversion into a manufacturing and distribution facility.
General Capital structured the investment around a long-term lease, favorable fixed-rate financing, and the property's strong industrial market fundamentals. The successful repositioning transformed an underutilized retail asset into a stabilized industrial investment while supporting the expansion of a local manufacturing business. Following a 5.5-year holding period, General Capital sold the property in July 2022, achieving a 28.2% internal rate of return and a 3.4x equity multiple. The transaction demonstrates the value of strategic acquisition, adaptive reuse, and disciplined investment execution.
Key Themes
- Strategic adaptive reuse converting vacant retail space into industrial manufacturing.
- Below-replacement-cost acquisition creating significant investment value from inception.
- Pre-leased industrial investment minimizing vacancy and lease-up risk.
- Proactive municipal collaboration securing retail-to-industrial rezoning before acquisition.
- Long-term investment strategy combining stable tenancy with favorable financing.
Results
- 138,330 SF industrial facility repositioned from a former Sam's Club.
- $3 million acquisition completed at approximately $21.69 per SF.
- 100% pre-leased to established Milwaukee manufacturer Sellars Absorbent Materials.
- 28.2% IRR and 3.4x equity multiple achieved over 5.5 years.
- Successful July 2022 disposition completed following industrial repositioning.