A proposal to convert downtown Milwaukee’s 100 East office tower into apartments could receive $14.4 million in tax incremental financing (TIF) from the city, under a plan set to be released Thursday.
The 35-story building, located at 100 E. Wisconsin Ave., has been steadily vacating since 2020 as office tenants have found space in newer office buildings. After falling into foreclosure, the building was acquired in 2023 by a development team led by Milwaukee-based Klein Development and local restaurateur John Vassallo, who have planned to transform the property into a residential building.
The redevelopment is expected to cost $165 million and will include 373 apartments, according to a Wednesday press release from the City of Milwaukee. Of those, 75 units will be designated as “workforce housing” for tenants earning up to 100% of Milwaukee’s area median income (AMI).
Milwaukee’s Department of City Development (DCD) is proposing a new TIF district to support the project with $14.4 million in TIF, which is set to be publicly reviewed by the Redevelopment Authority later this month.
Additional financing for the 100 East project could come from state and federal historic tax credits. The building was nominated for historic status late last year, making it potentially eligible for such credits.
Vassallo has said construction work could begin in 2025, but did not immediately respond to request for comment on Wednesday.
The city’s TIF support is one of the first projects proposed under DCD’s updated TIF guidelines, which were unveiled in April.
That new plan expanded eligibility for TIF to include conversions of obsolete commercial buildings into housing and projects that include workforce housing units, which are units set aside for renters making between 60% and 100% of the AMI. For reference, 100% AMI in Milwaukee County equals $77,500 for an individual or $110,700 for a family of four, according to federal data. Previously, the city only considered TIF for housing projects that included units for those earning less than 60% of the AMI, which is generally referred to as affordable housing and usually subsidized by the state or federal government.
“This investment demonstrates that the City of Milwaukee is ahead of the curve nationally when it comes to recognizing the need to get creative and find a solution to repurpose obsolete buildings,” Vassallo said in the release. “Transforming this building into housing reflects a broader vision of how cities can grow thoughtfully. This development would not be possible without the city’s leadership and commitment to the future of downtown Milwaukee.”
More broadly, however, the updated guidelines have not been well received by developers, many of whom say—among other critiques—the city should codify the guidelines as policy to give developers more certainty that their projects would be supported.
DCD also providing TIF for Harambee affordable housing project
In addition to the 100 East TIF announcement, DCD announced that it will also be supporting an affordable housing project in the city’s Harambee neighborhood with TIF.
Located at 3116 N. Doctor Martin Luther King, Jr. Drive, the project, known as Compass Lofts, will include 67 housing units, 56 of which will be set aside for renters earning below 60% of the AMI. The project team is led by Martin Luther King Economic Development Corp. (MLKEDC) and EA Development.
DCD is proposing a TIF investment of $1.37 million. The total estimated development cost is approximately $19.8 million.
“The Compass Lofts development is a major win for the 6th District. It brings additional affordable housing to the King Drive corridor while transforming a vacant, city-owned property into something vibrant,” District 6 Alderwoman Milele Coggs said. “This is the kind of strategic investment that ensures growth is shared by the people who call this neighborhood home, and I thank the Department of City Development for their commitment to providing real opportunities for Milwaukee residents.”
The project is also receiving Low-Income Housing Tax Credits allocated by the Wisconsin Housing and Economic Development Authority (WHEDA), according to the release.
