Milwaukee-based Colbalt Partners LLC today unveiled its development plans for a West Allis site, currently owned by the school district, which include a 100-room hotel, retail space, office space and an education component.
Cobalt Partners has an option to purchase four school district properties for the $87 million project that will result in the redevelopment of nearly 23 acres located on South 70th Street, north of West Madison Street and South 71st and West Washington streets.
“High-density, amenity-rich redevelopment will redefine and reactivate the 70th Street corridor and catalyze the new, emerging brand for the City of West Allis in a bold and tangible way,” said Scott Yauck, president and CEO of Cobalt.
The project will likely begin next year.
The project includes 300,000 square feet of office space, 140,000 square feet of education/innovation, 52 row houses, 2,000 parking spaces and 18,000 square feet of retail.
“The revitalization of this community is on the fast-track,” said John Stibal West Allis Director of Development. “The 70th St. Corridor is our corporate gateway to the interstate and the heart of the Milwaukee metropolitan area. Cobalt’s commitment will bring huge energy and catalytic opportunity to this key business district.”
The West Allis community Development Authority will vote on a financing plan May 8 for the project. Phase one of the project will cost about $31 million. Cobalt has requested $5 million from the city.
The developer has also asked First-Ring Industrial Redevelopment Enterprise Inc. for a $10 million allocation of New Market Tax Credits which will allow for about $2.3 million in low interest and interest-only loan payments for seven years.
Phase two the Cobalt Partners project will include to new parking structures for which the developer has indicated there will be a request for an additional $10 million to $15 million in tax incremental financing.
“This project is more evidence that developers are seeing the value of the West Allis community,” said Mayor Dan Devine. “With our convenient location between Milwaukee and Waukesha developers such as Cobalt realize what an ideal location for successful development West Allis offers.”
Cobalt’s planned development is near Mandel Group’s The Market at Six Points project at the corner of West Greenfield Avenue and South 66th Street. That $60 million mixed-use project will include 177 apartments and 50,000 square feet of food-centered retail, anchored by an international market.
In 2013, Cardinal Capital Management Inc., a housing development and management firm, built a 12,480-square-foot corporate headquarters office building at 901 S. 70 St.
