ASG Equities Acquires UW Health-Leased Middleton Office Building for $39.11 Million in CTL-Financed Deal

ASG Equities has purchased a fully occupied, single-tenant office property in Middleton, Wisconsin for $39.11 million, with SRS Real Estate Partners and Lee & Associates representing the seller, a California-based private owner, according to an announcement from SRS Real Estate Partners.

The four-story building at 7954–7974 UW Health Court spans 197,860 square feet and is entirely occupied by University of Wisconsin Health Administrative Services, which has been a tenant at the property since 2008. The transaction implies a price of approximately $198 per square foot.

Deal Structure: Credit Tenant Lease Zero Cash Flow Financing

A defining feature of the transaction was the use of Credit Tenant Lease (CTL) zero cash flow financing, which SRS described as a rare structure that was used to accommodate the buyer's 1031 exchange while minimizing phantom income.

"The property offers the new ownership minimal landlord responsibilities and included rare, beneficial Credit Tenant Lease (CTL), zero-cash-flow financing with excess cash flow above the loan payment to accommodate the buyer's 1031 exchange while also minimizing phantom income," said John Redfield, Senior Vice President and Principal at SRS Capital Markets, who co-brokered the transaction.

In a CTL zero cash flow structure, rental income is largely directed toward debt service rather than distributed as current cash flow to the investor. According to SRS, the strategy is designed to maximize long-term returns and preserve capital through loan amortization, potential property appreciation, and tax advantages, rather than generating near-term yield. The structure allows investors to acquire a property with minimal equity while relying on the credit strength of the tenant to support highly leveraged financing.

John Redfield of SRS Capital Markets and John Battle, Principal and Managing Director with Lee & Associates, jointly represented the California-based private owner on the sell side.

Tenant Profile and Property Role

University of Wisconsin Health Administrative Services occupies the entire building and recently signed a new 20-year lease, providing the incoming ownership with a long-term, single-tenant income stream. The property functions as one of UW Health's administrative service office buildings, supporting operations including medical management, information services, compliance, and patient billing services.

The building is located less than six miles northeast of the University of Wisconsin–Madison and UW Health University Hospital, a 505-bed facility that U.S. News and World Report has recently ranked among the top hospitals in Wisconsin. The site sits just off Highway 12, an arterial road that carries more than 57,000 vehicles per day, according to SRS.

Brokerage Context

SRS Real Estate Partners, headquartered in Dallas with 29 offices nationwide, announced that its Capital Markets division has completed more than $1.6 billion in deal volume across more than 400 transactions so far this year. The firm currently has more than 900 properties actively on the market with a combined market value exceeding $4.3 billion, according to the announcement.

Lee & Associates co-represented the seller alongside SRS Real Estate Partners through John Battle, who serves as Principal and Managing Director at the firm.

Founded in 1986, SRS Real Estate Partners provides commercial real estate services across retail, industrial, and capital markets segments.

Sources: SRS Real Estate Partners Press Release, June 26, 2026