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Wednesday, May 27, 2015
Construction to begin for two hotel projects in Wauwatosa
May 20, 2015 09:37 AM
Construction is set to begin for two hotel development projects in Wauwatosa.

Developer Ed Walsh recently purchased a 2.9-acre site in the University of Wisconsin-Milwaukee Innovation Campus, located northeast of U.S. Highway 45 and Watertown Plank Road, from an affiliate of the UWM Real Estate Foundation for $925,000, according to state records.

Walsh plans to build a four-story, 127-room Residence Inn by Marriott hotel on the site. The hotel will be managed by Jacksonville, Ill.-based Hospitality Specialists Inc.

Construction will begin, "as soon as possible," Walsh said. "We have permit applications pending."

It will take 12 to 14 months to build the hotel, he said.

A groundbreaking ceremony for the project will be held on Thursday, June 4, said David Gilbert, president of the UWM Real Estate Foundation.

"It's very good news," he said.

Meanwhile, a double groundbreaking ceremony will be held on Thursday, May 21, to celebrate the start of construction of a 140-room Homewood Suites hotel and the Bartolotta restaurants planned at the Mayfair Collection development in Wauwatosa. Homewood Suites is a brand of Hilton Hotels.

The Mayfair Collection is the mixed-use development that is being built in stages northeast of Burleigh Street and U.S. Highway 45 in Wauwatosa. Chicago-based HSA Commercial Real Estate is the lead developer for the project. Chicago-based Phoenix Development Partners is developing the hotel and restaurants with a ground lease from HSA.

In addition to a groundbreaking ceremony for the Homewood Suites hotel, another ceremony Thursday will kick off construction for four restaurants planned by Milwaukee-based Bartolotta Restaurants for the Mayfair Collection. A 6,500-square-foot diner called Osgood's will be built near Highway 45. In addition a 15,000-square-foot building will be built at Mayfair Collection with three Bartolotta restaurants: a gastropub, a casual French bistro and a casual sushi restaurant. Plans for the diner, gastropub and French bistro were announced previously.

The three restaurants in the 15,000-square-foot building will be separate and distinct from the customer point of view, but they will share back of the house operations, including the kitchen, said Tim Blum, executive vice president of HSA.

The first phase of the Mayfair Collection opened last year and includes Nordstrom Rack and Sak’s Fifth Avenue OFF 5TH stores. The second phase is under construction and will include a Whole Foods store.

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Law firm to move to former Pabst brewery complex
May 20, 2015 09:32 AM
Borgelt, Powell, Peterson & Frauen S.C. will move its Milwaukee office from the City Center at 735 building at 735 N. Water St. downtown to the Pabst Boiler House building in the former Pabst brewery complex.

The firm recently leased the 13,629-square-foot top floor space of the 124-year-old, three-story building at 1243 N. 10th St. The space is currently occupied by Colliers International|Wisconsin, which will move to the 17-story office building under construction at 833 East Michigan St. Lyle Landowski and Matt Fahey brokered the lease for the building’s owner, PBH Redevelopment LLC.

The firm will move to the former Pabst brewery complex when the 833 East building is complete next year and Colliers vacates its space.

Borgelt, Powell, Peterson & Frauen S.C. traces its origins back to 1881. In addition to downtown Milwaukee, the firm has offices in Madison and Oakdale, Minn. The firm has 22 employees, including 17 attorneys, in its Milwaukee office.


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Mixed-use development planned to replace Sears at Bayshore
May 20, 2015 10:11 AM
New York-based Olshan Properties, the owner of Bayshore Town Center in Glendale, announced Monday that it plans to develop 300,000 square feet of addition mixed use development on the north end of the property.

The development will replace the Sears store that closed last year at Bayshore Town Center.

In addition, Olshan said Monday that a 17,000-square-foot Old Navy store under construction at Bayshore will open this fall.

Columbus, Ohio-based Steiner & Associates did a $300 million redevelopment project to transform Bayshore Mall into Bayshore Town Center. That project was completed in 2006. Retail real estate industry sources have said that Steiner, and now Olshan, have been waiting for years for the Sears lease at Bayshore to expire so the store could be replaced with higher end retail stores.

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Phoenix Investors affiliate acquires former Sigma Aldrich plant in Milwaukee
May 20, 2015 10:14 AM
An affiliate of Milwaukee-based Phoenix Investors LLC recently purchased the 289,000-square-foot former Sigma-Aldrich Plant for $650,000, and plans to renovate the property in hopes of attracting new tenants.

The property, located at 4143 N. 27th St. and 2905 W. Hope Ave. in Milwaukee, includes approximately 13 acres and was purchased from Aldrich Chemical Co. LLC.Phoenix Investors has assumed the property management of the complex, and will manage the renovation and leasing of it.

The property was the former home of Sigma-Aldrich Chemical and originally the home of Evinrude Motors. It is located in the 30th Street Industrial Corridor, which has been a major redevelopment focus for city officials as they try to attract jobs to the central city.

“We are excited by the industrial leasing opportunities afforded by the Sigma Industrial Complex,” said Kurt Jensen, senior vice president of acquisitions for Phoenix Investors. “The renewed interest in this industrial corridor with the City of Milwaukee’s investment into the Century City Business Park, dovetails with our redevelopment of the former Sigma-Aldrich plant. Our redeveloped space will provide industrial companies with affordable, quality and clean industrial space.”

The transaction was brokered by Patrick Dedering and Jim Babiasz of The Boerke Company.
The deal demonstrates how the industrial real estate market in the Milwaukee area continues to gain momentum. The southeastern Wisconsin industrial space vacancy rate fell to 4.86 in the first quarter, according to Xceligent. Milwaukee County absorbed nearly 600,000 square feet of industrial space in the first quarter and its vacancy rate fell to 7.56 percent.The Colliers International|Wisconsin first quarter industrial market report said: “Perhaps the most notable and encouraging (first quarter) gain came from the central sub-market (city of Milwaukee) with just shy of 600,000 square feet being absorbed. We believe this is due to a continued shortage in supply of product in the outlying submarkets, forcing users to re-visit the central submarket that was the most hard hit from the last downturn. We find this encouraging as the activity has reinvigorated the development community and local/regional invests to invest in this submarket.”

Phoenix Investors hopes to take advantage of those trends with the former Sigma Aldrich complex.

“As our industrial footprint continues to grow in the Milwaukee metropolitan area, we continue to look at value opportunities that fit our investment strategies. In the case of the Sigma Industrial Complex, we worked closely with Aldrich Chemical over the last two years to facilitate its orderly exit from the property,” said Frank P. Crivello, executive vice president, Phoenix Investors. “We expect to immediately commence with the rehabilitation and repositioning of the property to prepare it for prospective tenants.”

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Downtown Milwaukee Postal Service property is for sale
May 20, 2015 10:26 AM
The downtown Milwaukee Postal Service distribution, mail processing and post office facility, a 1.1 million-square-foot complex located at 341 W. St. Paul Ave., is for sale, according to commercial real estate brokerage DTZ Barry, which is listing the property.

The property is available on an investment sale basis. It is owned by Menomonee RP LLC, according to city records. The property is leased by the U.S. Postal Service, which has occupied the facility since 1970.

The asking price for the property is $12.8 million, according to DTZ Barry. The assessed value of the property is $19.5 million, according to city records.

The downtown Postal Service facility sits on a prominent 9.3-acre site along the north side of the Menomonee River, between the Intermodal Station and the Historic Third Ward and on the planned route for the downtown Milwaukee streetcar project.

“This is one of the most significant properties in Milwaukee, both as an investment and with future redevelopment potential,” said Kurt Van Dyke of DTZ Barry.

The Postal Service recently exercised an option for a multi-year lease renewal, Van Dyke said.

“Their rent is very reasonable,” he said. “Their rent is way below the market.”

Since 2012 the Postal Service has made significant investments to the facility including a new roof, 40,000 square feet of office space, new lighting and improvements to the building’s HVAC systems, Van Dyke said.

The Postal Service has faced challenges as communication has become more electronic. Some have wondered if the downtown Milwaukee Postal Service facility would become a redevelopment opportunity.

“It appears (the Postal Service is) going to stay there for quite some time,” Van Dyke said. “I think (the property) is a redevelopment opportunity, but I’m guessing that opportunity will not present itself for another 10 years.”

In 2008 the Postal Service announced plans to abandon the downtown Milwaukee facility and replace it with a new 820,000-square-foot mail distribution and processing center that was to be built in Oak Creek. However, the plans for the Oak Creek facility never moved forward and the Postal Service has maintained operations at the downtown facility.

Last year the Postal Service said it would close its Madison processing and distribution center and move the work to the Milwaukee facility.

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Nomad World Pub plans to expand
May 20, 2015 10:22 AM
One of the most popular places to watch soccer in Milwaukee plans to expand. The owner of Nomad World Pub, a travel and soccer-themed bar on Brady Street in Milwaukee, plans to build an addition to add outdoor seating and an additional bar with more indoor seating.

The addition would be added south of the Nomad World Pub building, located at 1401 E. Brady St., on a vacant parcel at 1672 N. Warren Ave., according to plans submitted to the city. The new space will include an outdoor porch and an enclosed bar area.

The enclosed bar area will have an indoor/outdoor feel with a retractable glass roof and folding wood window walls, according to the plans submitted to the city. The addition will also have a kitchen and bathrooms on the east end of the building.

Nomad World Pub is seeking approval from the city’s Historic Preservation Commission for the expansion. The two-story, 2,028-square-foot building was built in 1883, according to city records. It is located in the Brady Street Historic District.

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Leases
May 20, 2015 09:11 AM

Colliers International|Wisconsin

Borgelt, Powell, Peterson & Frauen S.C. leased 13,629 square feet of office space in the Pabst Boiler House building at 1243 N. 10th St., Milwaukee.

Tradesmen International LLC leased 3,200 square feet of industrial space at 5375 N. 118th Ct., Milwaukee.

Penegor & Lowenberg renewed its lease of 1,987 square feet of office space and Fidelity National Title leased 1,066 square feet of office space at Squires II Office Center, 16655 W. Bluemound Road, Brookfield.

Organizational Development Consultants renewed its lease of 1,804 square feet of office space at Squires I Office Center, 16535 W. Bluemound Road, Brookfield.

Judson & Associates

SJB Concrete and Foundations leased 6,008 square feet of space at W228 S7055 Enterprise Dr., Vernon, from O’Neal Development LLC.

NAI MLG Commercial

Shoo Inc. leased 4,315 square feet of space at 241 N. Broadway, Milwaukee, from 241 N. Broadway Holdings LLC.

Paragon Development Systems Inc. leased 2,356 square feet of space at 13400 Bishops Lane, Brookfield, from WILC-Gateway LLC.

Mayfair Dental Group leased 2,000 square feet of space at 1233 N. Mayfair Road, Wauwatosa, from Wangard Partners Inc.

Affiliate Steam Equipment Co. leased 402 square feet of space at 10855 W. Potter Road, Wauwatosa, from Sai Ram Properties LLC.

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Sales
May 20, 2015 09:18 AM



NAI MLG Commercial

John E. Kurtz purchased 12,650 square feet of retail space at 3830 S. Moorland Road, New Berlin, from 4 Points Properties LLC.

Vega Properties LLC purchased 8,595 square feet of space at 2936 W. Kilbourn Ave., Milwaukee, from 2936 W Kilbourn LLC.

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Andrew Weiland This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Andrew Weiland. This bulletin is published every Wednesday morning. Send real estate news tips to Andrew.Weiland@biztimes.com or call him at (414) 336-7120.


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