MILWAUKEE, WIS. — U.S. Bank has provided $7.2 million in equity for the development of a 100,000-square-foot mixed-use project on eight acres in Milwaukee. Freshwater Plaza will be located in Walker’s Point at the corner of South First Street and East Greenfield Avenue. The construction cost of the initial phase is $28.8 million. The $7.2 million in equity was raised through the federal New Markets Tax Credit Program, which is designed to spur revitalization efforts of low-income and impoverished communities across the country. The development will feature 76 apartments, including 20 percent to be set aside for lower-income residents; a Cermak Fresh Market grocery store; and other as yet unnamed retailers. The City of Milwaukee is providing tax-increment financing, and the Wisconsin Economic Development Corp. provided a brownfield grant. The property is slated to open by the end of 2016. Endeavour Corp., Wangard Partners Inc. and Freshwater Plaza Corp. are the project developers. Catalyst Construction LLC is the general contractor.
Milwaukee is in the midst of a new construction boom in the retail sector, with three major projects currently underway and a fourth that was delivered in 2014 for a total of more than 1.1 million square feet of new space in the market. The majority of this space is being delivered fully leased. In many cases, these retailers are brand new tenants to the Milwaukee area. In the second quarter, overall vacancy ticked up 10 basis points to 10.2 percent. However, this was mainly due to store closures and consolidation in the Milwaukee market by retailers such as Office Depot, OfficeMax, Pick ’n Save, Sears and Kmart. But don’t be rattled by the uptick in vacancies. In reality, the market is incredibly active with new tenants entering the region and several expanding. Retailers recognize that there is ample room to compete for market share in Milwaukee and the surrounding area. Many of these new retailers will come on line in large ground-up projects now underway. Here are some of the notable projects: • In Menomonee Falls, a new Costco will open this fall and anchor a 300,000-square-foot development known as White Stone Station from Cobalt Partners LLC. • The …
WAUNAKEE, WIS. — Quantum Real Estate Advisors Inc. has brokered the $1.8 million sale of a 24,960-square-foot truck terminal located at 900 Uniek Drive in Waunakee, approximately 12 miles north of Madison. The terminal is within the Waunakee Business Park. Saia Motor Freight Line occupies the single-tenant industrial building. The buyer and seller in the transaction were undisclosed. Chad Firsel of Quantum was the sole broker.
WAUKESHA AND WAUWATOSA WIS. — Siegel-Gallagher has arranged two leases totaling 8,078 square feet in Southeast Wisconsin. Flexible Finance of Wisconsin LLC has leased 1,500 square feet of retail space from Garni Properties WI LLC. Sunset Retail Center is located at 530 W. Sunset Drive in Waukesha, approximately 20 miles west of Milwaukee. Devin Tessmer and Shaun Dempsey of Siegel-Gallagher arranged the transaction. In a separate leasing deal, Saint A Inc. will occupy 6,578 square feet of office space at the Forum, located at 3333 N. Mayfair Road in Wauwatosa, a western suburb of Milwaukee. Mayfair LLC is the landlord. Dan Walsh and John Dulmes of Siegel-Gallagher arranged the transaction.
WAUKESHA, WIS. — The Dickman Company Inc. / CORFAC International has brokered the sale of a 74,600-square-foot industrial property for an undisclosed price. The building is located at 809 Philip Drive in Waukesha, approximately 20 miles west of Milwaukee. JDS Leasing LLC sold the building to GRE-Milwaukee LLC for an undisclosed price. Samuel Dickman, Samuel Dickman Jr. and Zach Noble of The Dickman Co. represented the buyer. Roger Siegel of JLL represented the seller.
EDGERTON, WIS. — Love Funding has closed a $25.9 million HUD refinancing loan for Edgerton Hospital and Health Services in Edgerton, approximately 30 miles outside of Madison. Steven Hunt of Love Funding secured the loan through HUD’s 242/223(a)(7) loan insurance program. The facility was built in 2011 with a FHA-insured loan. The new loan, which is non-recourse for a term of 21 years, is expected to generate $244,000 a year in debt-service savings, or more than $5 million over the life of the loan. The hospital includes inpatient care, swing bed care, emergency and urgent care, diagnostic services, rehabilitation and same-day surgery. The hospital is affiliated with SSM Health Care of Wisconsin.
SCHAUMBURG, ILL. AND MILWAUKEE, WIS. — Bloomfield Capital and Alpha Alternative have closed an $8.5 million senior bridge loan. The loan was used to purchase a discounted note from the existing lender on a 102,000-square-foot Class B office building in Schaumburg and a 34,000-square-foot Class B office building in Milwaukee. Bloomfield Capital was approached by Alpha Alternatives to create a bridge loan structure for the existing sponsor. That structure included funding a $6.6 million discounted note purchase plus additional funds for interest and renovation reserves, totaling $8.5 million. The sponsor required additional capital for tenant improvements and leasing commissions. The buildings averaged below 70 percent occupancy at closing.
MILWAUKEE — Odgen & Company Inc. has brokered the sale of three properties in Milwaukee. Layton Again LLC sold an airport office building located at 600 E. Layton Ave. for $340,000. Franklin Financial is the current tenant. Chip and Mary Bunzel have acquired two new retail properties to relocate Bunzel’s Meat Market & Catering. R & E Real Estate Holdings LLC sold a property located at 9015 W. Burleigh St. for $412,000. Charney Family Trust sold a property located at 9035 W. Burleigh St. for $75,000. Wiegand Enterprises has acquired two office/industrial warehouse properties from Receiver One LLC. A property located at 2422 W. Clybourn St. was acquired for $175,000. Another property located at 2460 W. Clybourn St. was acquired for $425,000. Michael Seramur of Odgen & Company brokered all transactions.
MILWAUKEE — Irgens’ 833 East, an 18-story office building in Milwaukee scheduled to open in March 2016, is adding new tenants. Major League Baseball and Commissioner Emeritus Allan H. Selig, Heck Capital Advisors and Grace Matthews Inc. are some of the tenants to recently sign leases at the Class A office building under construction at 833 E. Michigan St. Jason Inc. will be expanding its lease from 12,506 square feet to 26,043 square feet. An undisclosed tenant will occupy 2,758 square feet. 833 East also has letters of intent for two additional tenants totaling more than 37,000. These three undisclosed tenants will comprise 65 percent of the building. Lyle Landowski of Colliers International brokered the deal with Jason Inc. Steve Palec of Colliers International brokered the deal with Heck Capital. David Pudlosky of JLL brokered the deal with Grace Matthews. Previously disclosed tenants include Colliers International, Godfrey & Kahn, Irgens, Catalyst, First American Title and Rare Steakhouse. The general contractor for the project is CG Schmidt. The architect is Kahler Slater Inc. The lenders are Private Bank, Associated Bank, Anchor Bank and Bank Mutual. Colliers International is responsible for the leasing and management of 833 East.
BROOKFIELD, MADISON, AND OAK CREEK, WIS. — Colliers International has brokered the lease of 53,904 square feet of space in Wisconsin. Alberts Investment Management Inc. has renewed its 1,540-square-foot lease of office space at Squires II located at 16655 W. Bluemound Road in Brookfield, which is 10 miles west of Milwaukee. Sal Strehlow and Matt Fahey of Colliers International brokered the deal. Memorial Care Center LLC has leased 1,800 square feet of office space at 2830 Dryden Drive in Madison. Brian McClaren and Jim Larkin of Colliers International brokered the deal. SEKO Worldwide has leased 50,564 square feet of industrial space at 10020 S. Reinhardt Drive in Oak Creek, which is approximately 12 miles south of Milwaukee. Tom Shepard of Colliers International brokered the deal.