HUDSON, WIS. — Mayer Road Ventures LLC has begun development of The Massey, an 85-unit luxury apartment complex in Hudson near the Twin Cities. The $15 million project is slated to open in fall 2021. Amenities will include a coffee and wine bar, dog park, communal workspace and fitness center. The project’s name comes from Louis Massey, the founder of Hudson. The Massey will be the first luxury apartment property in Hudson, according to the developer.
SHEBOYGAN, WIS. — Founders 3 Real Estate Services has brokered the sale of a 23,220-square-foot office property in Sheboygan for $2.6 million. Built in 1989, the asset is located at 1441 N. Taylor Drive. BMO Harris Bank is the anchor tenant. Bob Flood and Andy Hess of Founders 3 represented the seller, BL-Branch Group One LLC. The buyer was JVL Ventures Real Estate I LLC.
BROOKFIELD, WIS. — NorthMarq has arranged $26.2 million in permanent debt for the recapitalization of Poplar Creek Club, a recently stabilized, 138-unit apartment property in Brookfield near Milwaukee. Brett Hood of NorthMarq arranged the Freddie Mac loan, which features a 10-year, fixed-rate term with five years of interest-only payments followed by a 30-year amortization schedule. Loan proceeds retired a $22.6 million construction loan. The borrower was undisclosed. The four-story property features a 143-space parking garage as well as a separate 4,544-square-foot retail building. Amenities include a clubhouse, fitness center, yoga studio, outdoor pool and sundeck.
MARINETTE, WIS. — Mortgage banking company Merchants Capital has secured $6.5 million in financing for Trolley Station Terrace, a 45-unit affordable housing property under construction in Northeast Wisconsin’s Marinette. Of the total financing, $1.8 million is a rural development loan and $4.7 million is a low-income housing tax credit bridge loan. Nonprofit developer Newcap Inc. is developing the project. Of the property’s 45 units, 38 will be reserved for renters who earn up to 60 percent of area median income. There will also be units designated as supportive housing for local veterans. Construction began in August and is scheduled for completion in August 2021. The three-story project will be situated on 2.5 acres at 153 Main St.
MILWAUKEE — JLL Capital Markets has arranged $87.6 million in construction financing for Ascent, a 25-story, 259-unit luxury apartment tower in Milwaukee. Upon completion, Ascent will be the tallest mass timber building in the world, according to JLL. The 272,475-square-foot development will offer one-, two- and three-bedroom units averaging 1,052 square feet. Slated to deliver in summer 2022, the development will also include 8,000 square feet of retail space. Amenities will include an indoor and outdoor pool, sauna, lounge, fitness center and a rooftop with event space, fire pits, outdoor cinema area, shared workspaces and views of Lake Michigan. Timothy Joyce and Trent Niederberger of JLL arranged the financing on behalf of the borrower, a partnership between New Land Enterprises and Wiechmann Enterprises. Bank OZK provided senior financing while Hines Realty Income Fund provided a mezzanine loan. Construction is now underway. Mass timber is a category of framing styles typically characterized by the use of large solid wood panels for wall, floor, and roof construction.
PEWAUKEE, WIS. — The Boulder Group has negotiated the $4.7 million sale of a property net leased to Children’s Hospital of Wisconsin in Pewaukee, about 20 miles west of Milwaukee. The newly constructed, 11,736-square-foot building is located at 1215 George Towne Drive. The Children’s Hospital lease expires in 2028. Jimmy Goodman and John Feeney of Boulder represented the buyer, a New York-based firm completing a 1031 exchange. A local real estate firm was the seller.
MAZOMANIE, WIS. — JLL Capital Markets has brokered the $8.7 million sale of a 225,000-square-foot warehouse and distribution center net leased to Roundy’s Supermarket in the suburban Madison community of Mazomanie. Roundy’s is a wholly owned subsidiary of Kroger that operates more than 150 grocery stores throughout Wisconsin and Illinois. The company has used this facility to store dry goods for its stores since 1989. The property features a clear height of 32 feet and 24 dock-high doors. It sits on 31.7 acres at 400 Walter Road. Alex Sharrin, Alex Geanakos, Larry Kilduff and Michael George of JLL represented the seller, Dallas-based Ramrock Real Estate LLC. Maxx Carney and Alejandro Ramirez of JLL arranged a $5.2 million acquisition loan on behalf of the undisclosed buyer. A CMBS lender provided the 10-year, fixed-rate loan.
KENOSHA, WIS. — The City of Kenosha has unveiled plans for a $400 million project known as Downtown Vision. It will include two 11-story towers to be known as the Brindisi Towers, which will feature luxury apartments and condos as well as restaurant and retail space on the ground floor. A new entertainment and performing arts center will also be built with a 1,200-seat main theater and a smaller 300-seat community theater. A gallery will be operated by the Kenosha Public Museum. The performing arts center will connect to a higher-end hotel. As part of the project, Kenosha City Hall will be relocated. The current location will be transformed into a park. A parking ramp will increase downtown parking by 356 stalls. The Downtown Vision plan will be presented for review and recommendation to the Public Works Committee, Public Safety & Welfare Committee and Finance Committee in early December. Then it will go to the Common Council for approval with the goal of receiving final project approval by the end of the year. The Downtown Vision project complements a recently released plan for the Uptown neighborhood with the development of Uptown Lofts, an $18 million project that will transform the …
In earlier research, we found that investors may find advantageous risk and reward tradeoffs during the pandemic in often overlooked Midwest secondary markets. For the most part, average rent and occupancy metrics in these markets continued to rise throughout the summer, recession notwithstanding. Together, their inviting cap rates, rising NOI and low historic income volatility form a fairly compelling investment predicate. We also found that positive performance attributes were not limited to the region’s most robust economies. Even metropolitan markets that have experienced slow demographic growth — like Cincinnati and Detroit — posted surprisingly good revenue growth. Can the same logic be extended to metropolitan areas experiencing actual demographic decline? A review of recent trends in three “high-yield” markets with negative population growth – Cleveland, Milwaukee and St. Louis – shed some light on the question. View higher resolution version of chart above here. With respect to occupancy, the answer is yes. In fact, property level data published by Yardi suggest that market conditions in each of these metro areas has been constructive since February. Between February and October, average occupancy among stabilized same-store property samples increased by 14 basis points in Cleveland and 10 bps in St. Louis, in …
MENOMONEE FALLS, WIS. — Kohl’s Corp. (NYSE: KSS) has reported that comparable sales decreased 13.3 percent in its third quarter, which ended Oct. 31, compared with the same period a year ago. That said, third-quarter sales and earnings exceeded company expectations, according to a news release. Shoppers are spending less on apparel during the pandemic, but Kohl’s says that its digital sales growth remains strong. The Menomonee Falls-based retailer says it has entered the holiday season with more omnichannel conveniences in place for its customers. Kohl’s stock price closed at $26.18 per share on Monday, Nov. 16, down from $58.40 per share one year ago. The retailer operates roughly 1,150 stores nationwide.
