Marcus commits to downtown theater complex, but project needs office tenants

Milwaukee-based Marcus Corp. has signed a letter of intent to develop a movie theater complex on part of the Park East corridor site northwest of Water Street and Knapp Street, where Rainier Properties LLC is planning a mixed use development.
The company has been interested in developing a movie theater complex in downtown Milwaukee for a few years said Carlo Petrick, communications manager for Marcus Theatres. The site is attractive because of its proximity to the Water Street entertainment district of bars and restaurants, he said.
“It would compliment the existing entertainment venues and would expand the entertainment district,” Petrick said.
Marcus has signed a letter of intent to purchase approximately 1.5-acre of the 2.5-acre site.
The movie theater complex would be part of a larger mixed use development by Rainier Properties that would include about 280,000 square feet of office space, retail space and a parking structure.
But the movie theater will not be built unless the entire project moves forward, Petrick said.
That means Rainier needs to obtain office tenants before the project can break ground.
One of the most active tenants in the downtown Milwaukee office market right now is Von Briesen & Roper S.C., which is considering a relocation from its current headquarters at 411 E. Wisconsin Ave. The firm is seeking about 75,000 square feet with an option to grow into additional space in the future.
Randall Crocker, the president and chief executive officer of the firm said he hopes to have a decision made about the firm’s future headquarters by this fall. The firm has not ruled out staying in the 411 Building, but would prefer to move to another location, but said.
Von Briesen issued a request for proposals from office developers and building owners, but Crocker declined to say who responded, except to say the firm was “pleased with the response to our RFP.”
Other tenants that are considering moving to downtown Milwaukee office locations include Godfrey & Kahn S.C., Baker Tilly and CH2M HILL.
Marcus Corp.’s lease of about 40,000 square feet of office space at 100 E. Wisconsin Ave. for its corporate headquarters expires at the end 2013, according to a Milwaukee commercial real estate source.
The company could decide to move its office space to the development that includes its downtown movie theater complex. However, Petrick said, “at this point it’s premature to talk about that.”