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Affiliate of Next Realty Acquires Retail Center in Madison


An affiliate of Next Realty LLC, on behalf of Next Realty Fund X, LP, has acquired Essex Square, a multi-tenant neighborhood center in Madison, Wisconsin.

The financial terms of the transaction were not disclosed.

The 44,000-square-foot center, which sits on four acres, is located at 4222 – 4260 E. Towne Blvd. in Madison. Essex Square consists of three structures:  a main single-story building that totals 31,000 square feet; a two-story, 12,600-square-foot mixed-use building; and a 400-square-foot freestanding drive-through facility occupied by MOKA Coffee.

One of the most compelling aspects of the acquisition is the timing, which coincides with the opening of Concentra Health Services’ 7,777-square-foot space earlier in March. Essex Square’s newest tenant, a division of Select Medical, a national healthcare company, has relocated and expanded to the center from an older and smaller space nearby. From Essex Square, Concentra will provide urgent care, primary care, occupational medicine and physical therapy services.

“The acquisition of Essex Square is a great and timely opportunity for Next and reinforces our Multi-Solution™ investment strategy which at its core is committed to diversification,” said Eteri Zaslavsky, Managing Director, Next Realty. “Concentra brings an appealing medical component to the primarily retail-oriented tenant mix of Essex Square. That should contribute to the financial and operational stability as well as the overall marketability of the center.”

The property features a mix of 15 tenants that includes medical, retail, restaurant and convenience-oriented users. Other tenants of Essex Square include Half Price Books, Penzeys Spice Company, The Camera Store, Noodles & Co., The UPS Store, Allstate, Great Clips, Merle Norman Cosmetics and MOKA Coffee. Many of the tenants at the center have been tenants for more than 20 years, including one that has occupied space here for 35 years. Essex Square was built in 1987 and historically has operated at strong occupancy levels.

Despite the macro-market headwinds, the Madison retail sector has demonstrated continued strength throughout 2021, with limited vacancy of approximately 3.4% according to CoStar.  While the market has seen the closure of several large department stores and other big-box retailers which began even prior to the pandemic, the smaller in-line space has shown signs of adaptability and resiliency.

The acquisition was financed by Landmark Credit Union.

Essex Square is the second acquisition for Next’s Fund X. In December 2021, Next acquired the Dolphin Square Apartments, located at 10300 W. Bluemound Road in Wauwatosa, Wisconsin. Dolphin Square is a 64-unit multifamily complex with a unit mix that includes studios, one- and two-bedroom units.  The three-story plus basement building also includes 88 indoor heated parking spaces.