Hawley Strigenz Development Corp. has significantly scaled back the size of the proposed Catalano Place on the Park development that it is planning to build in Milwaukee’s Historic Third Ward. As a result, construction is expected to start soon.
The firm has dropped its original plans to build a five-story, 150,000-square-foot office and retail building at the northwest corner of Milwaukee Street and Menomonee Street. The building was to have about 65,000 square feet of office space, 20,000 square feet of first floor retail space and 158 indoor parking spaces.
The new plan is to redevelop the 33,819-square-foot existing structure, a series of three connected buildings, including the historic middle building, which is about 100 years old. Hawley Strigenz is applying for historic preservation tax credits to restore the historic structure, which includes high ceilings, brick walls and thick wood timbers typical of many other historic Third Ward buildings.
The buildings at the site were formerly used by Beck Carton Corp. In Hawley Strigenz’s original plans for the Catalano Place development, that structure was to be demolished. Now, only a small part of the structure, about 2,500 square feet of space, will be demolished to create a parking lot on the north side of the site. A two-story, 5,000-square-foot addition will be added at the southeast corner of the property, bringing the structure right up to the street corner.
When complete, the redeveloped structure will be a two-story, 35,458-square-foot building with 14,148 square feet of office space and 21,310 square feet of retail space.
Hawley Strigenz has received financing for the $9 million project from Johnson Bank and plans to begin construction in February and complete the project by the end of the year, said Hawley Strigenz principal Tyler Hawley. The architect and general contractor for the project is Milwaukee-based La Macchia Group LLC.
The plans for the larger new building were scrapped because the project could not attract enough office tenants, said Marianne Burish, a principal and the director of office properties for Siegel-Gallagher. She is representing Hawley Strigenz in finding tenants for Catalano Place. The downtown Milwaukee office market remains weak, and developers have struggled in recent years to attract anchor tenants for new office buildings there.
“We were trying to do a bigger project, but it just didn’t work out,” Burish said. “You’re not putting up spec office buildings in Milwaukee. There are lots of pretty pictures (of proposed office buildings), but you’ve got to get the deal.”
Retail development is hot right now in the Third Ward, as several retailers have moved into the neighborhood, and an Anthropologie store will open soon. Therefore, it made more sense to do a retail-dominated development, Hawley said.
“We found a deal that works,” he said. “We didn’t want to sit around waiting for a major office tenant to start construction. We feel the best development right now is for retail in the Third Ward. Why add more risk to the equation? If you have a deal that works, you have to go for it.”
The 14,148 square feet of office space planned for the project has been leased. Burish and Hawley declined to say who would occupy that space.
A restaurant has signed a letter of intent for about 7,000 square feet of space in the building, Hawley said, and other retailers are showing interest. Several potential retail tenants, including soft goods stores, restaurants and bars, have expressed interest in the building’s retail space, Burish said.
“Our project offers something no one else can really offer in the Third Ward – (first-floor) retail space and attached parking on the site,” Hawley said. “The combination of the two has been a big selling point for national and local retailers.”
Grafton
West Bend-based Design and Build Inc. and Kraig Sadownikow recently received architectural and site plan approval for a four-story, 83-room Hampton Inn & Suites hotel that they plan to build at I-43 and Highway 60. Later this month, the Village Board will consider the rezoning request for the project. The project will also include a Water Street Brewery restaurant, similar to Water Street Brewery’s location in Delafield. The project will also include a BP gas station.
Oak Street #1 LLC, a partnership formed by Residential Homes of America and E.J. Plesko and Associates Inc., plans to redevelop the soon to be vacant Kohl’s store at 1953 Wisconsin Ave., and the rest of the Manchester Mall property to the south. The redevelopment will include 14.5 acres of commercial development and 8.3 acres of residential development. The commercial development will consist of a 60,692-square-foot Pick ‘n Save grocery store and 11,400 square feet of multi-tenant retail space. The residential portion of the project will consist of 17 buildings, with a total of 136 condo units. The Kohl’s store at the mall is closing because a new store will open later this year in the Grafton Commons development at I-43 and Highway 60. The new Pick ‘n Save store will replace the Pick ‘n Save across the street that its corporate parent, Milwaukee-based Roundy’s Supermarkets Inc., plans to close.
Endeavor LLC plans to build a 11,560-square-foot multi-tenant retail building on the north side of Highway 60, just east of Leeson Electric Corp. at 2100 Washington St.
Grafton Creekside Development LLC plans to build a 3,919-square-foot North Shore Bank branch at the southeast corner of Wisconsin Avenue and First Avenue. The building will be just south of the Creekside Plaza development, which consists of a 14,925-square-foot multi-tenant commercial building. Brookfield-based North Shore Bank has more than 40 branches, but this will its first in Ozaukee County.
Brookfield
Michael Polaski, the president of SU Restaurant Group, announced recently that he has closed Monsoon Wok & Lounge at 17800 W. Bluemound Road, and will re-open the restaurant later this month as a new Asian fusion restaurant called Umami Moto. Polaski was an initial investor for Monsoon, which was opened by Milwaukee restaurateur “Johnny V” Vassallo, the owner of Mo’s Restaurants. In October, Vassallo announced that he had sold his Monsoon Wok & Lounge concept and brand and the Monsoon location in Brookfield to Polaski. “I’m a big believer in Asian fusion, but I think it can be done better offering greater flavor and an experience,” Polaski said. Polaski also owns Mi-key’s a restaurant at 811 N. Jefferson St. in downtown Milwaukee. That location was the original home of Monsoon.
Hartford
Byrandy LLC recently purchased an industrial building site of 3.85 acres at 2115 Innovation Way in Hartford’s Dodge Industrial Park. The firm will build a 35,000-square-foot manufacturing plant on the property, with an initial employment of 30 workers.
Construction was recently completed for a 20,000-square-foot metal fabricating plant at 2155 Innovation Way for Fabrifast. The company has 21 employees.
Commercial real estate Transactions
Leases
Boerke Company
Independent Care Health Plan Inc. (iCare) leased 19,304 square feet of office space in the Schlitz River Center at 1555 N. River Center Dr., Milwaukee, from Schlitz River Center LLC.
Dickman Company
Central Bark-Washington County leased 8,292 square feet of industrial space at 3767 Scenic Road, Polk, from Robert Schoenke.
Grubb & Ellis|Apex Commercial
The Schroeder Group leased 9,850 square feet of office space at 20800 Swenson Dr., Waukesha, from Liberty Property Trust.
Fields & Associates LLC leased 1,710 square feet of office space at 740 Pilgrim Parkway, Elm Grove, from James D. and Patricia A. Williams.
Schenck & Associates S.C. leased 22,290 square feet of office space at 11411 W. Park Place, Milwaukee, from Limited Property LP.
Inland Companies
Newport Audiology Center leased 690 square feet of space at 3636 N. 124th St., Wauwatosa, from Pratap N. Singh.
AMB Development leased 8,941 square feet of space at 1243 N. 10th St., Building 10, Milwaukee, from Pabst Boiler House LLC.
FirsTime Mfg. leased 39,622 square feet of space at N22 W23977 Ridgeview Parkway, Pewaukee, from Welsh Companies.
GAB Robins North America leased 3,612 square feet of space at 235 N. Executive Dr., Brookfield, from VK Development.
BJ Electric Supply Co. leased 20,575 square feet of space at N25 W23040 Paul Road, Pewaukee, from ING Clarion Partners.
SOH Distribution Co. leased 32,000 square feet of space at 4410 N. 132nd St., Butler, from First Industrial.
Soleil Tanning Salon leased 1,350 square feet of space in Regency Plaza at 6100-16 Regency West Dr., Racine, from The Metropolitan Group.
Papa Murphy’s leased 1,400 square feet of space at 1595 W. Sumner St., Hartford, from Midwest Expansion Hartford.
Cousins Subs leased 2,829 square feet of space at 789 N. Water St., Milwaukee, from Water Street Investments LLC.
Peters & Associates renewed its lease of 5,427 square feet of office space at 125 N. Executive Dr., Brookfield, from BRIC Exec.
CEVA Freight LLC leased 77,660 square feet of industrial space at 5200-5390 S. Ashland Way, Franklin, from Welsh Franklin Development Co. II LLC.
Judson & Associates
Energis High Voltage Resources leased 1,800 square feet of space at 402 Travis Lane, Unit# 69, Waukesha, from Milwaukee Street Partners LLC and Waucom Partners.
Neo Designs Inc. leased 5,760 square feet of space at W227 N937 Westmound Dr., Waukesha, from Nagawicka View Dairy Farm.
Indulgence Chocolatiers LLC leased 1,200 square feet of space at 400 Travis Lane, Unit 26, Waukesha, from Waucom Partners LLC.
Morrow Equipment Company leased 1,200 square feet of space at 406 Travis Lane, Unit 49, Waukesha, from Waucom Partners LLC.
Mid-America Real Estate
Anytime Fitness leased 4,000 square feet of space at Cudahy Center, 5851 Packard Ave., Cudahy, from Equity Investment Group.
AT&T Mobility leased 2,600 square feet of space at 6150 N. Port Washington Road, Glendale, from JBK North Bay Holdings LLC.
Curves leased 3,890 square feet of space at Taylor Heights in Sheboygan from Emmes Realty Service.
Siegel-Gallagher
Unum Life Insurance Co. leased 10,241 square feet of office space in The Tradesman at 500 Elm Grove Road, Elm Grove, from Building Trades United.
Northern Oak Capital Management leased 3,016 square feet of office space in 250 Plaza at 250 E. Wisconsin Ave., from East Milwaukee Operating Associates LP.
ADX Creative leased 5,093 square feet of office space in The Blatz Hourse, 252 E. Highland, Milwaukee, from Gg 252 Highland LLC.
Sales
Boerke Company
Ann Arbor Executive Suites LLC purchased the 8.43-acre future Staybridge Suites hotel site at 9527 S. 27th St., Franklin, from Halquist Brothers Real Estate Partnership.
Dickman Company
Ace Industrial Properties Inc. purchased 41,058 square feet of office space at 3505-25 N. 124th St., Brookfield, from 124th Street Holdings LLC.
Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter Day Saints purchased 55,000 square feet of retail space at 1170 W. Wind Lake Ave., Milwaukee, from Faith Baptist Church.
Grubb & Ellis|Apex Commercial
VN Enterprises LLC purchased 1.41 acres at 9000 S. 27th St., Oak Creek, from Suhail Sarsour and Imad Koran for $400,000.
K&L Group LLC purchased 18,528 square feet of industrial space at 5737 W. Hemlock St., Milwaukee, from Robert W. Hamon and Jeffrey E. Johnson.
Inland Companies
Steiner Group purchased 41,058 square feet of space at 3505-25 N. 124th St., Brookfield, from 124th Street LLC.
Judson & Associates
Lilly Road Associates LLP purchased 4,800 square feet of space at W300 N7672 Christine Lane, Units 400 and 500, Merton, from Newfield Properties LLC.
Never Better Investments LLC purchased 83,000 square feet of industrial space at W220 N507 Springdale Road, Pewaukee, from Springdale Road Land LLC.
Venture Two LLC purchased 20,000 square feet of space at 2831 Grandview Blvd., Waukesha, from William and Marcia Hohnstein.
501 Grand LLC purchased 10,000 square feet of space at 501 S. Grand Ave., Waukesha, from Koch Family Trust.
DDF Properties LLC purchased 6,240 square feet of space at 3304 W. Pierce St., Milwaukee, from Gary and Sharon Szymborski.
Steingergroup
Ace Delafield Properties LLC, a subsidiary of Steinergroup Inc., purchased 13 buildings totaling about 150,000 square feet of office and retail space in downtown Delafield from Robert Lang for $20.5 million.
Through its entity Ace Industrial Properties, Steinergroup Inc. purchased 55 acres at the southwest corner of Moorland Road and College Avenue in Muskego for $6 million. Steinergroup plans to develop a mixed use technology park on the site called The Muskego Commerce Center. The center will be anchored by a 486,000-square-foot distribution center for GE Healthcare.
Towne Investments
Towne Investments purchased a 37,037-square-foot building and a vacant 3.19-acre site in OakGroveBusiness Park in Waukegan, Ill. and a 1.43-acre site and a 2.23-acre site in the Business Park of Kenosha.
New construction
Berghammer Construction Corp., Butler, recently completed the construction of a 25,000-square-foot educational facility for the Academy of Learning and Leadership, an independent public charter school on Milwaukee’s north side.
Dbi Inc., Pewaukee, was recently awarded a contract to design and build a new 48,304-square-foot recycling facility for National Recycling Inc. at 4244 S. 13th St., Milwaukee. Dbi was also awarded a contract to design and build: a 6,707-square-foot health club addition at 560 Industrial Dr., Hartland; a 7,200-square-foot shop building at N7959 Birch Road, Ixonia; a new 5,040-square-foot Tree Care Facility for Farina Tree Care on Exuecutive Drive in Genesee; and a 3,000-square-foot distribution center addition at 1010 Richards Drive in Hartland.
Campbell Construction BBG LLC, Waukesha, was recently awarded the construction project to renovate the Schwan’s Home Services depot in Round Lake Beach, Ill.
Anderson-Ashton Inc., New Berlin, was recently selected by Wisconsin Oven Corp. to design and build a new 14,000-square-foot addition to its manufacturing facility in East Troy. Anderson-Ashton also plans to build a 4,000-square-foot addition for Maple Metal Products on Whitney Drive in Germantown.
Inland Companies recently completed a 15,000-square-foot remodeling project for the City of Milwaukee at 789 N. Water St., Milwaukee, and several tenant build-out projects: 25,000 square feet for Associated Bank at Stadium Business Park III, Milwaukee; space for Cardio-Thoracic at Stone Ridge III in Pewaukee; 9,500 square feet for Set Up Site at 3275 Intertech Dr., Brookfield; 10,000 square feet for Winter Kloman at 235 N. Executive Dr., Brookfield; and 15,000 square feet for Paul Mitchell Academy in the Silvernail Center in Waukesha. Inland was recently awarded a 40,000-square-foot historical renovation project of the Boiler House building at the former Pabst brewery. Inland was also awarded several tenant build out contracts: 25,000 square feet for ALPS at Stadium Business Park IV, Milwaukee; 3,000 square feet for Cousin’s Subs at 789 N. Water St., Milwaukee; 15,000 square feet for Eddie Z’s on Capitol Drive in Brookfield; 6,000 square feet for GAB Robins at 235 N. Executive Dr., Brookfield; 50,000 square feet for Real Estate Recycling at Stadium Business Park IV, Milwaukee; and 30,000 square feet for M&I Bank in the Milwaukee Center in downtown Milwaukee.
