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Wednesday, October 29, 2014
Construction begins for Hampton Inn & Suites in West Allis
October 29, 2014 09:42 AM
A groundbreaking ceremony was held Tuesday to celebrate the start of construction of a 101-room Hampton Inn & Suites hotel at the corner of West Greenfield Avenue and South 82nd Street near Wisconsin State Fair Park in West Allis.

The four-story hotel is expected to open in August of 2015. It will have 8,000 square feet of meeting and banquet space able to accomdate groups of up to 300, a swimming pool, a fitness center, a business center and a 24-hour Pavilion Pantry Market.

Wisconsin Dells-based Stand Rock Hospitality will oversee the development and operations of the hotel. The general contractor for the project is Madison-based Horizon Construction Group.

“West Allis is an ideal market location for a first-class Hampton Inn & Suites,” said Pete Helland, managing partner of Stand Rock Hospitality. “The location is convenient for both business and leisure travelers with easy access off of I-94 and a prime location near the Wisconsin State Fair and other area attractions. We are confident it will be extremely successful with state-of-the-art amenities and outstanding hospitality and customer service.”

In addition to funding through the sale of new markets tax credits, the project is being financed with more than $9.5 million from Milwaukee-based FirstPathway Partner’s foreign investors through the federal EB-5 program.

“This is really a good project not only for our investors but for the city of West Allis and the greater Milwaukee area,” said Robert Kraft, chief executive officer of Milwaukee-based First Pathway Partners. “This is yet another great example of a successful project created in part by investors involved in the EB-5 program.”

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Radisson Hotel in Menomonee Falls sold for $7.7 million
October 29, 2014 10:19 AM
A Wilmette, Ill.-based investment group has purchased the 135-room Radisson Hotel in Menomonee Falls. The sale was a quit claim deed transfer valued at $7.7 million according to state records.

The hotel, located at N88 W14750 Main St., just west of U.S. Highway 45, was built by a developer, Lodging Investors of Menomonee Falls LLC, that received a construction loan for the project of nearly $18 million from the village. The hotel opened in 2011 but the developer missed loan payments and village took control of the property last year.

The sale of the property allows the village to recoup some of the money it lost in financing the project.

With the sale of the hotel, it is now under new management by Schaumburg, Ill.-based Hostmark Hospitality Group.

"We are pleased to play a vital role in ensuring that this impressive property remains a vibrant member of the Menomonee Falls community, providing management stability, employment opportunity and execeptional accommodation for leisure, business and group clientele," said Hostmark president Jerome Cataldo.

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YMCA of Metro Milwaukee closes sales of Greenfield and Menomonee Falls facilities
October 29, 2014 10:58 AM
The YMCA of Metropolitan Milwaukee has closed on the sale of two of its properties to the YMCA of Greater Waukesha County, according to state records.
 
The YMCA of Greater Waukesha County purchased the Tri-County YMCA, located at N84 W17501 Menomonee Ave. in Menomonee Falls, for $2.3 million. The facility is on a 21.3-acre site.
 
The YMCA of Greater Waukesha County also purchased the Southwest YMCA, located at 11311 W. Howard Ave. in Greenfield, for $4.6 million. The facility there is on a 21.4-acre site.
 
Additionally, the YMCA of Metropolitan Milwaukee recently closed the sale of the Feith Family Ozaukee YMCA, located at 465 Northwoods Rd. in Port Washington, to the Kettle Moraine YMCA. The $2 million sale includes 21.5 acres.
 
The transactions are part of the YMCA of Metropolitan Milwaukee’s strategic plan to overcome a $30 million debt. A portion of the proceeds from the sales of the facilities will be used to pay off the organization’s debt.
 
The organization filed for bankruptcy in June and announced plans to sell most of its owned real estate assets as it tightens its mission to primarily serve residents of or very close to Milwaukee.

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Point Loomis shopping center sold for $10.35 million
October 29, 2014 10:04 AM
An affiliate of Cincinnati, Ohio-based Phillips Edison & Company recently purchased the 160,533-square-foot Point Loomis shopping center on the south side of Milwaukee from an affiliate of Beachwood, Ohio-based DDR Corp. for $10.35 million, according to state records.

Point Loomis is located on a 14-acre site at the southwest corner of South 27th Street and Loomis Road. It has a 80,731-square-foot Kohl’s store, a 76,129-square-foot Pick ‘n Save store and a 3,673-square-foot Chase Bank branch building on an outlot. The shopping center has no vacant space. The property also has a surface parking area with 883 spaces.

The shopping center sale was marketed for DDR by Ben Wineman, Joe Girardi and Dan Rosenfeld of Mid-American Real Estate, according to a marketing flyer. Rosenfeld declined to comment on the deal.

Kohl’s has been a tenant at Point Loomis since 1981, Pick ‘n Save has been there since 1989 and the Chase Bank has been there since 1991. The tenants pay “well-below market rents,” with Kohl’s paying $4.34 per square foot, Pick ‘n Save paying $4.53 per square foot and Chase Bank paying $75,000 a year for a ground lease, according to the marketing materials for the shopping center.

The shopping center has pro forma net operating income of $759,025, according to the marketing materials.

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Bucks to move offices to Schlitz Park
October 29, 2014 10:07 AM
The Milwaukee Bucks announced this week that the team will move its corporate offices to the Schlitz Park complex, just north of downtown Milwaukee. The team also says it has added 40 employees to its sales staff and executive team in recent months and now has more than 130 employees.

"We’re putting together one of the most talented and hard-working group of professionals in the NBA and now we’re excited to have one of the best offices in sports," added Peter Feigin, Bucks president. "Milwaukee offered a number of worthwhile locations, but Schlitz Park was the right community for us to expand our footprint downtown and bring our business team together. We’ll be able to further integrate ourselves with more Milwaukee businesses and create the best possible work environment for our employees.”

The Bucks officers are currently located at the Milwaukee Theatre.

The team will move its offices in January to an 18,000-square-foot space on the sixth floor of the Stock-House building at Schlitz Park.

The team's Schlitz Park office space covers the entire top floor of the Stock-House building, the tallest at Schlitz Park, and overlooks downtown Milwaukee and the Milwaukee River and will allow the Bucks’ staff to work in an open floor concept.

"We are going to use this site to attract the most talented workers in the country," Feigin said.

Meanwhile, the Bucks are still working with local officials to develop a plan for a new arena. The NBA says Milwaukee needs to have a new arena by 2017 for the team to stay here long term.

Bucks co-owner Marc Lasry said the team hopes to have an announcement about a site for a new arena in 30 to 60 days.

"I know where I would like it to be," he said. "We still need to get a number of things done. It's complicated."

Feigin said the team is considering plans to relocate its practice facility from the Cousins Center in St. Francis to the new arena.

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County Board panel again backs Hammes development in Park East corridor
October 29, 2014 09:54 AM
The Milwaukee County Board’s Economic and Community Development Committee this week voted unanimously to reaffirm its support for a a multi-building office space development that Brookfield-based Hammes Co. wants to build in the Park East corridor.

Hammes Co. has preliminary plans to build three office buildings on the vacant area northwest of Water Street and Knapp Street in downtown Milwaukee. A 0.37-acre portion of the site is owned by Milwaukee County, a city street runs through the site, and the remaining portion of the site is privately owned. The city street would be vacated, under the development plan.

Rainier Properties LLC has tried for years tried to develop an office building with a Marcus Theatres movie theater complex on the site. But that project has never moved forward as Rainier, led by Bruce Westling, was unable to attract office tenants.

The proposed Hammes Co. development for the site could include the relocation of the company’s corporate headquarters to the site, which would bring about 60 jobs downtown. Other details of the project are still being developed.

The proposed Hammes development was approved by the Economic and Community Development Committee and advanced in September to the full County Board, where it got sidetracked when Supervisor Theo Lipscomb raised concerns about Hammes Co. founder and managing partner Jon Hammes, alleging that in 2006 Hammes made a disparaging remark to an activist about low wage workers.

Hammes’ attorney denied that allegation.

“Jon would never say that,” said his attorney, Foley & Lardner partner Marc Marotta.

After Lipscomb raised the allegation, the proposal to sell the county-owned site to Hammes was sent back to the committee.

“I’ll leave (the Hammes allegation) alone,” Lipscomb said before the committee. “It stands in the record.”

Milwaukee Department of City Development Commissioner Richard “Rocky” Marcoux appeared before the panel and urged supervisors to approve the Hammes project. The site has been vacant for more than 8 years, since the Park East freeway was torn down, and it has significant environmental contamination that must be removed and infrastructure that will need to be relocated, both of which will add to the cost of a development project there.

“This is a very challenging site,” Marcoux said. “I believe this is our best shot at getting this site developed. If we can’t get it done with Hammes and the prowess of their development team, I don’t see too much of a future for this site.”

City officials are considering plans to provide “substantial assistance” to help Hammes develop the site and overcome the site challenges, Marcoux said.

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County Board panel endorses O’Donnell parking structure sale to NML
October 29, 2014 09:52 AM
The Milwaukee County Board’s Economic and Community Development Committee this week endorsed a proposal to sell the O’Donnell Park parking structure near the lakefront in downtown Milwaukee to Northwestern Mutual Life Insurance Co.

Under the proposal, Northwestern Mutual would purchase the parking structure at 929-31 E. Michigan St. in downtown Milwaukee for $12.7 million (the appraised value of $14 million less a $1.3 million credit for the cost of known repairs needed for the garage’s roof).

The sale was endorsed by the committee on a 4-2 vote. The deal is still subject to approval by the full County Board.

Northwestern Mutual wants to purchase the structure to providing parking for its employees. The company is building a $450 million, 1.1-square-foot expansion to its corporate headquarters and plans to add 1,900 employees there by 2030 and needs additional parking spaces as it expands employment.

The county still owes about $6.6 million on the parking structure, which was built in 1993. Interest costs and service costs related to retiring the debt are estimated to be $1.1 million. The county would net about $5 million from the sale of the structure to Northwestern Mutual.

Northwestern Mutual has pledged to improve O’Donnell Park, which is on top of the parking structure, and maintain it is a park open to the public. The company’s planned improvements to the facility are expected to exceed $6 million.

A deed restriction for the northern half of the property and the zoning for the entire site would have to be changed by the city if Northwestern Mutual wanted to replace the park with private development. The proposed sale of the parking structure would add authority to the county to also approve or deny removal of the deed restrictions.

Northwestern Mutual has also pledged to maintain the parking structure for at least 20 years. At least 200 parking spaces in the structure will be available to the public at market rates on all week days, as part of the proposed sale agreement with the county.

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Commercial Real Estate and Development Conference will focus on major projects
October 29, 2014 10:37 AM
A panel of local developers working on some of the most significant development projects in southeastern Wisconsin will highlight the 12th annual BizTimes Milwaukee Commercial Real Estate and Development Conference.

The event will be held from 7:30 to 9:30 a.m. on Friday, Nov. 14, at Potawatomi Hotel & Casino in Milwaukee.

The keynote speaker for the event will be Lawrence Yun, chief economist and senior vice president of research for the National Association of Realtors. He will give an overview of the national real estate outlook.

Also, a panel of prominent local developers working on some of the largest development projects in the region will be featured at the conference. They will include:
- Mark Irgens, CEO and manager of Irgens. The firm is building 833 East, a 17-story, 358,000-square-foot office tower under construction in downtown Milwaukee. The firm is also working on a mixed-use development plan for the Ruby Farm property in Brookfield.
- Jerold Franke, president of Wispark LLC. The firm is leading a team of developers for the 85-acre Drexel Town Square development, which will create a mixed-use downtown area for Oak Creek.
- Scott Yauck, president and chief executive officer of Cobalt Partners LLC, which is working on a mixed-use development in Menomonee Falls called Whitestone Station, which is one of the largest brownfield redevelopment projects planned in the state.

The panel will be moderated by Dr. Mark Eppli, interim James H. Keyes Dean of Business Administration and Robert B. Bell Sr. Chair in Real Estate at Marquette University.

Marquette and the Commercial Association of Realtors Wisconsin (CARW) are event partners for the BizTimes Milwaukee Commercial Real Estate and Development Conference.
To register for the conference, visit www.biztimes.com/creconference.


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Leases
October 29, 2014 09:44 AM

Judson & Associates

Larry’s Auto Body leased 2,200 square feet of space at 4525 N. 127th St., Butler, from Helix Property Group LLC.

NAI MLG Commercial

Intelligent Video Solutions Inc. leased 2,900 square feet of space at 1265 E. Wisconsin Ave., Pewaukee, from Cascade Properties of Wisconsin.

AT&T leased 2,834 square feet of space at 7115 Durand Ave., Mt. Pleasant.

Ohlsson Model Management leased 2,189 square feet of space at 221 E. Buffalo St., Milwaukee, from 231 East Buffalo LLC.

Pet Depot leased 1,800 square feet of space at 2197 S. Kinnickinnic Ave., Milwaukee, from Capital Real Estate 3 LLC.

Edward Jones leased 990 square feet of space at 5401 Douglas Ave., Caledonia, from Caledonia Chiropractic Properties LLC.

Siegel-Gallagher

Regus Corp. leased 12,500 square feet of space in The Mayer Building at 342 N. Water St., Milwaukee, from 342 North Water LLC.

Stephen Perry Smith Architects Inc. leased 2,527 square feet of office space at 215 N. Water St., Milwaukee, from WillowTree Development.

AIM Investment LLC leased 1,547 square feet of space in the Saddlery Building at 233 N. Water St., Milwaukee, from Pieper Properties Inc.

Zilber Property Group

Cale Miles LLC d.b.a. CMP Tactical Lazer Tag leased an additional 7,159 square feet of industrial space at 4903-07 S. Howell Ave., Milwaukee. CMP Tactical Lazer Tag, which opened in the building in 2010, currently occupies 16,774 square feet of space there and with the expansion will occupy a total of 23,933 square feet of space.

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Sales
October 29, 2014 09:48 AM

Judson & Associates

OMS Properties LLC purchased 8,164 square feet of space at 1213 W. Mallory Ave., Milwaukee, from Brefalha 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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