When Scott Fergus, president of Waukesha-based KeyBridge Development Group, announced his company’s plans for a $185 million condominium development on the lakefront in downtown Racine, some people probably thought he was crazy. After all, some people can’t get over the image of Racine as an economically distressed rust belt town with some rundown neighborhoods and crime problems. For many, Racine is not a place they think of as a hot spot for development.
But Fergus thinks his development, called Pointe Blue, could help change the image of his hometown, and the market has responded favorably to the project so far.
KeyBridge plans to build 434 condominiums, 90 apartments, 75,000 square feet of boat storage space and 50,000 square feet of commercial space on a 20-acre site northwest of Lake Michigan and the Root River. The development will be built on the site of Pugh Marina and the former Walker Manufacturing facility.
The condominiums will cost between $190,000 and about $950,000, and 55 percent will be priced at or below $350,000, Fergus said. A 15-story building and two eight-story buildings will have 318 of the condominiums. The rest will be in low-rise buildings.
After only about one month of marketing, buyers have reserved 75 of the condominiums. Each reservation includes a $2,000 deposit. Fergus said it took about a year for each of his company’s Milwaukee projects, First Place on the River and 601 East Ogden, to obtain 75 reservations.
“It’s a pretty good indication that Racine is a market that has been untapped,” Fergus said. “We feel this is a very good indication of the market’s enthusiasm for the site and for the project.”
The location itself is driving the interest, Fergus said.
“The proximity to the lake, it’s right at your front door,” he said. “It is a one of a kind unique location in Wisconsin.”
About half of the condominiums that have been reserved so far cost $700,000 and more, Fergus said. Those units are in high demand because they offer the best lake views, he said.
All but eight of the 75 reserved condominiums have been reserved by Racine County residents, Fergus said.
“Which is a surprise,” he said. “Most people expected more buyers to come from the Chicago market. I believe that by the time the project is done about 40 percent of our buyers will come from the Chicago area. At least, that is what our market research tells us.”
Site preparation for the project will begin in the fourth quarter this year. Actual construction is expected to begin in December of 2007. The project is expected to be completed in 2010 or 2011.
Fergus believes his company’s development will attract more development to downtown Racine, which has a large number of historic buildings.
“This project will change the image of the city,” Fergus said. “We hope it will begin a ripple effect of redevelopment activity. Racine’s downtown has the potential to be one of the most gorgeous downtowns in all of Wisconsin and the Great Lakes.”
More images of the Pointe Blue project are available at www.pointeblue.com.
Butler
The Village of Butler is selling a 4.1-acre site on 124th Street midway between Capitol Drive and Hampton Avenue. The village hired Milwaukee-based Equity Commercial Real Estate to market the property. The Butler property could attract retail, office or industrial development. “With the widening of 124th Street to four lanes, we are confident that this site will draw attention from quality developers,” said Butler village administrator Tim Rhode.
Richfield
Maple Grove, Minn.-based Würth Adams has moved into a larger warehouse at 2438 Richfield Parkway in Richfield. The 55,000-square-foot building has 46,000 square feet of warehouse space and 9,000 square feet of office space. It was built by Helsan Development Co. to suit Würth Adams, which is leasing the space. Würth Adams previously occupied two smaller buildings with warehouse and office space in Richfield, a 17,700-square-foot building at 3062 Highway 145 and a 20,000-square-foot building at 3070 Highway 145. The company is a fasteners distributor and provides supply chain management solutions and inventory management programs for manufacturers.
Franklin
Maximum Martini LLC plans to open a martini lounge, called Kä Martini Lounge, in a 2,100-square-foot space at 7352 W. Rawson Ave. The martini lounge will also offer appetizers and desserts.
Kenosha
Green Bay-based Direct Development plans to build a pair of two-story buildings, each with 5,000 square feet of retail space on the first floor and three condominiums on the second floor, and 16 two-story townhouses on a vacant 1.75 acre site at the southeast corner of 56th Street and 2nd Avenue in the city’s Harbor Park area near Lake Michigan. Previously, Direct Development had proposed a larger development for the property and an adjacent property, but had to scale back its plans because the city is limiting buildings to two stories on this property. Direct Development plans to propose a new three-story development later for the adjacent property.
Delafield
Diamondback Management Inc. plans to open a Tumbleweed Southwest Grill at 2961 Village Square Dr. Louisville, Ky.-based Tumbleweed Southwest Grill is a chain of southwestern style restaurants with 63 locations in Wisconsin, Illinois, Indiana, Ohio and Kentucky, including locations in Milwaukee, Franklin and New Berlin.
Oak Creek
Big Bend Development plans to build two 22,000-square-foot multi-tenant office buildings on a vacant 6.5 acre site at 8870 S. Mayhew Dr.
Muskego
Zabest Commercial Group plans to build a 3,000-square-foot gas station, convenience store and car wash on a 1.5-acre site at the northeast corner of Loomis Road and North Cape Road. The former Last Chance Saloon, a run-down building on the property that has been vacant for years, will be demolished.
Cedarburg
Colum MacCrthy, who owns The Irish Pub on Washington Avenue in downtown Cedarburg, plans to convert the office building at W62 N556 Washington Ave., next door to his pub, into a bed and breakfast inn. The office building was originally built in 1880 as a single family home.
Waukesha
Dale Mierow plans to develop a 13,300-square-foot multi-tenant retail building on a vacant 1.4-acre site in front of Sharkey’s pool hall, southwest of Grandview Boulevard and Meadow Lane.
Andrew Weiland is the managing editor of Small Business Times. Send news about commercial real estate to Andrew.weiland@biztimes.com or by calling him at (414) 277-8181 ext. 120. News can also be sent to Andrew Weiland, Small Business Times, 1123 N. Water St., Milwaukee, WI 53202.
Leases
Apex Commercial
Lindner Logistics LLC leased 71,778 square feet of industrial space at 9151 N. Deerbrok Trail, Milwaukee, from Brown Deer WI Two LLC.
Bisco Industries Inc. leased 4,093 square feet of office space, Texas Instruments leased 1,368 square feet of office space and Shakespeare Investment Counseling leased 2,504 square feet of office space at 150 N. Sunny Slope Road, Brookfield, from 150 Sunnyslope LLC.
Wachovia Securities LLC leased 4,216 square feet of office space at 400 Wells St., Delafield, from Lang Campus LLC.
Dickman Company
Best Ceilings & Studs Inc. leased 5,660 square feet of industrial space at W231 N2811 Roundy Circle East, Pewaukee, from Briohn Leasing Company LLP.
Inland Companies
Lindner Logistics leased 71,778 square feet of office and warehouse space on North Deerbrook Trail in Brown Deer.
M&I Support Services leased 40,370 square feet of office space at 4701 Schroeder Dr., Brown Deer.
Aurora Medical Group leased 15,162 square feet of office and warehouse space at Stadium Business
Park II, 4000 Mitchell St.
Great Lakes Recovery leased 2,508 square feet of office space at West Allis Commercial Center, 2006-2142 S. 55th St., West Allis.
Union Security Insurance leased 2,060 square feet of office space in Executive Center III at 125 N. Executive Dr., Brookfield.
MWH Americas Inc. leased 1,448 square feet of office space at 789 N. Water St., Milwaukee.
NAI MLG Commercial
BrightStar Healthcare leased 611 square feet of office space at 5261 N. Port Washington Road, Glendale, from Diane Building Corp.
Product Action International Inc. leased 15,750 square feet of industrial space at 1814 Dolphin Dr., Waukesha, from RAB Property’s LLC.
Syed Raziuddin leased a 1,200-square-foot Indian restaurant in the Layton Square Shopping Center at 843 W. Layton Ave., Milwaukee, from Builders Realty & Investment Corp.
Polacheck Company
Tuesday Morning Inc. leased 9,091 square feet of space at 828 S. Main St., West Bend, from James Deshur.
Sales
Apex Commercial
Braun Brothers Inc. purchased 2.81 acres on Tesch Court in Waukesha from Michael Pelant.
Dickman Company
Trakloc Midwest LLC purchased 6.23 acres of land at 6500 W. Calumet Road, Milwaukee, from BDL Partnership.
Becker Properties Inc. purchased an 18,000-square-foot industrial property at 11801 W. Silver Spring Road, Milwaukee, from PDQ Food Stores Inc.
Burleigh MOB Joint Venture LLC purchased 1.08 acres at 3040 N. 117th St., Wauwatosa, from Anthony J. Frascona Living Trust.
Inland Companies
Carpet Land USA purchased the 20,000-square-foot industrial building at 11315 W. Rogers St., West Allis.
NAI MLG Commercial
Colder’s Furniture purchased 2.61 acres of land at 9709 S. 13th St., Oak Creek, from Mike A. Iannell.
R&D Katz Holdings LLC purchased a 23,891-square-foot retail center at 1500 State St., Racine, from Big Bend Development.
Outlook Development Group LLC purchased two shopping centers totaling 20,028 square feet of space at 13625-13725 W. Capitol Dr., Brookfield, from Capitol Plaza Properties.
Joseph Judd purchased a 23,414-square-foot, mixed-use, multi-tenant office building at 4125 N. 124th St., Brookfield, from Intertech II LLC.
Vision Realty Partners Ltd. purchased a gas station with a convenience store, car wash, pizza restaurant and deli at 9510 S. 27th St., Oak Creek, from Randon Corp.
Ogden & Company
Scherf Properties Trust II purchased the Sunset Fields Shopping Center at 131-59 E. Sunset Dr., Waukesha, from Sunset Fields LLC.
Polacheck Company
Aldi Inc. purchased a 84,000-square-foot building on a 2.7 acre site at 5301 N. Hopkins St., Milwaukee, from O’Byrne Group LLC.
New construction
Suburban Construction Inc., Richfield, recently completed a 23,000-square-foot expansion for Strohwig Tool & Die in Richfield. The expansion will support two 75 ton overhead cranes and will be used for additional fabrication space.
MSI General Corp., Oconomowoc, has been selected to design and build a 2,000-square-foot convenience store for Khatra and Dhanoa LLC at 2710 Roosevelt Road, Kenosha.
Inland Construction, Milwaukee, was awarded contracts for: a 40,000-square-foot build-out for Covenant Health Care at the West Allis Center, 1126 S. 70th St., West Allis; a 32,040-square-foot project for insurance claims and general office space for State Farm Insurance at 245 S. Executive Dr., Brookfield; a 5,143-square-foot office build-out for Oak Creek Family Medical Patient Care at The Gathering, 8825 S. Howell Ave., Oak Creek; a 4,250-square-foot radiologist office project for Wisconsin Radiology Specialists at 500 W. Brown Deer Road, Milwaukee; and a 4,096-square-foot law office project for Niebler & Associates at Stoneridge III, N14 W23833 Stone Ridge Dr., Pewaukee. In addition, Inland Construction recently completed: a 55,263-square-foot office and warehouse facility, called Stadium Business Park III, at 4111 W. Mitchell St., Milwaukee; a 25,000-square-foot office build-out for Van Ru at 11701 W. Bradley Road, Milwaukee; and a 900-square-foot retail space build-out for Great Clips Hair Salon, 6531 S. 27th St., Franklin.
MEDC Loans
Enforcement Technology Group received a $234,318 MEDC loan and $546,742 in additional financing from Park Bank to purchase a commercial condominium at 400 N. Broadway. Enforcement Technology occupies about 64 percent of the space and leases the rest to Case Law Firm S.C.
El Rey Mexican Products Inc. received a $340,000 MEDC loan and $510,000 in additional financing from Park Bank to purchase a 49,430-square-foot warehouse at 704-710 W. National Ave. The property is being sold to El Rey for $850,000.
North Avenue Health Center LLC received a $340,000 MEDC loan and $510,000 in additional financing from Bank One to renovate the three-story building at 2300-04 N. 12th St., which will be the new home for North Avenue Health Center. The medical clinic will occupy the first two floors and the third floor will be available for lease.
