The decision by John Jazwiec to resign as the chief executive officer of RedPrairie Corp. might help bring the company’s corporate headquarters to downtown Milwaukee.
Real estate sources say RedPrairie is considering a move downtown to a development in the Park East Freeway corridor that is being planned by Brookfield-based MLG Commercial.
However, the company’s possible move downtown could have been complicated by controversy generated by Jazwiec. He raised the ire of some government officials by making critical statements about the state’s tax and business climate.
Jazwiec may have sealed his fate at RedPrairie when he claimed he and his family were victims of a home invasion and robbery on Milwaukee’s east side, but he initially refused to report the incident to police. Instead, he sent an insulting e-mail to Milwaukee Mayor Tom Barrett and threatened to begin the process of “de-annexation” from the city.
Jazwiec previously had criticized the priorities of city officials. “We need to focus less on baseball teams that play in empty baseball fields and fake creative places like the Third Ward, which is greased by local politicians and people want to leave in a year,” Jazwiec said.
RedPrairie’s corporate headquarters, and about 200 of its employees, are currently located in the Crossroads Corporate Center at 20700 Swenson Drive in the Town of Brookfield. The office complex is owned by Malvern, Pa.-based Liberty Property Trust.
RedPrairie has “a couple more years” left on its lease for that space, said Neal Driscoll, director of leasing and development for Liberty Property Trust’s Milwaukee office. Driscoll said RedPrairie executives have informed Liberty Property Trust that the company might move downtown.
“They’ve made us aware of the fact that they are considering downtown options,” Driscoll said. “We’re working hard to keep them.”
Another commercial real estate broker, who asked not to be identified for this report, told SBT recently that he learned that RedPrairie has decided it wants to move its headquarters to downtown Milwaukee, but the biggest remaining hurdle is its attempt to gain tax incremental financing (TIF) from the city.
A downtown location could help RedPrairie attract the high-tech workers that it needs. The company develops software for supply chain, store management, logistics and warehouse management.
The downtown Milwaukee office market remains soft, and new office buildings, such as the new headquarters for Manpower Inc., likely will not be built without a city subsidy, because they are competing with suburban buildings with lower parking costs. A report by Chicago-based real estate consultant S.B. Friedman & Co. earlier this year said major downtown Milwaukee office developments will likely need a city subsidy, because the weak office market does not support the costs to build office space and needed parking structures.
A perfect example is the new Manpower corporate headquarters, which received $25 million in TIF from the city.
Manpower is bringing 1,000 jobs into downtown Milwaukee.
City officials would probably love to have RedPrairie’s headquarters and its 200 employees, depending upon how much TIF is necessary.
“We’ve engaged in discussions with the developer and have reached out to the company to talk about growing in Milwaukee,” said Andrea Rowe Richards, spokeswoman for the Department of City Development.
Jazwiec’s strange journey started at the 2006 Northern Trust Economic Trends breakfast presented by Small Business Times, where Jazwiec was a featured speaker.
“This state has been particularly socialistic,” said Jazwiec, who described himself as “somewhat of a Libertarian” during the speech that morning. “I know that from my tax bill. I always joke that there is a hammer and sickle on the state flag.”
In response to his comments, City of Milwaukee officials reached out to RedPrairie, suggesting the company should move downtown.
One city official said he believed Jazwiec’s resignation “has got to enhance the likelihood” that the company and MLG will work out a deal with the city to move RedPrairie downtown.
Sam Rowen, legislative assistant for Milwaukee Alderman Michael D’Amato, said, “High-tech companies are the wave of the future. Jazwiec or no Jazwiec, the city would be glad to have the company here.”
Francisco Partners, a Menlo, Calif.-based private equity firm, acquired RedPrairie in 2005. Ezra Perlman, a board member for RedPrairie and a managing director of Francisco Partners, said, “We have no specific plans to move the company’s headquarters.”
Perlman acknowledged that there have been discussions about the pros and cons of moving the company’s headquarters to Milwaukee, but there are no plans to do so, he said. However, he also would not rule out a future move.
Perlman also said Jazwiec was not forced to resign, and that he did an excellent job of running RedPrairie.
“The performance of the company has been excellent,” he said. “John led the company for six years. During that time, the company grew tremendously and profitability improved. John did a terrific job.”
The future direction on the company could be decided by Jazwiec’s successor, P. Michael Mayoras, who also has been appointed to the company’s board of directors.
Milwaukee
A McDonald’s franchisee recently closed the McDonald’s restaurant at 7130 N. 76th St. and opened a new McDonald’s restaurant just a few blocks north at the intersection of North 76th Street and Good Hope Road.
Sheboygan
The Sheboygan Plan Commission recently approved plans for a 14,820-square-foot Walgreen’s store at the northwest corner of North Avenue and Calumet Drive. The project was originally opposed by neighbors in the area, but a compromise was worked with them and the developer, Waukesha-based MRED-Cummings.
Developer Tom Schaefer plans to build a 14,700-square-foot retail building at the northeast corner of Calumet Drive and North Avenue.
West Allis
International Autos Inc. plans to move its Porsche and Infiniti inventory to its Waukesha dealership and will remodel its West Allis dealership at 2400 S. 108th St. to accommodate its Audi, BMW, Mini Cooper and Mercedes products.
Crescent Electric Supply Co., 11303 W. Theo Trecker Way, is planning to build a 10,000-square-foot warehouse addition to its existing 23,000-square-foot building. The company is in the process of purchasing a 0.87-acre vacant parcel of land from We Energies to provide room for the expansion.
Keri Dahl plans to open a salon, called Chop Shop Salon, in a 350-square-foot space at 1721 S. 81st St. The two-story building has 1,225 square feet of commercial space on the first floor and a two-bedroom residence on the second floor.
Waukesha
Clysmic Properties LLc plans to build a four-story, 66-room dormitory for Carroll College at the site of the former Waukesha Rubber Plant at 324 W. College Ave. The former Waukesha Rubber building will be demolished.
Commercial Real Estate Transactions
Leases
Apex Commercial
Majesty Mortgage Inc. leased 1,471 square feet of office space at 740 Pilgrim Parkway, Elm Grove, from James D. and Patricia A. Williams.
Associates of Neurogurgery S.C. leased 1,588 square feet of office space at 13105 W. Bluemound Road, Brookfield, from Miro Properties Limited Partnership.
Clean Harbors Environmental Inc. leased 11,800 square feet of industrial space at 5401 N. Park Dr., Butler.
Boerke Company
Bryant & Stratton College renewed its lease of 36,919 square feet of office space in 310 West (formerly known as the Reuss Federal Plaza) at 310 W. Wisconsin Ave., Milwaukee, from Federal Plaza Associates.
Kids In Motion leased 3,000 square feet of retail space in The Shoppes of Janesville Commons at S74 W16865 Janesville Road, Muskego, from Muskego Properties.
Port Chiropractic LLC leased 1,348 square feet of office space and Cleaning Plus Inc. leased 1,014 square feet of office space at 1000 N. Wisconsin St., Port Washington, from JCA Properties LLC.
Principal Funding LLC leased 3,795 square feet of office space in The Enterprise Center at 12700 W. Bluemound Road, Elm Grove, from Robert Yanker and Bud Cialdini.
CB Richard Ellis
The Wisconsin Foundation for Independent Colleges Inc. leased 2,597 square feet of office space at 4425 N. Port Washington Road, Glendale, from Eastlake Towers Corporate Center LP.
Arandall Corp. leased 55,000 square feet of industrial space at N90 W14700 Commerce Dr., Menomonee Falls, from SBM of Wisconsin LLC.
Bartech Group LLC leased 1,505 square feet of office space at 735 N. Water St., Milwaukee, from Compass Properties North Water Street.
Timewalk LLC leased 1,200 square feet of retail space at 3789 S. 108th St., Greenfield, from Javic Realty Investment LLP.
Elite Nails leased 1,200 square feet of retail space at N78 W14585 Appleton Ave., Menomonee Falls, from North Pont Centre LLP.
Finest Nails leased 732 square feet of retail space at 6650 W. State St., Wauwatosa, from Learsi Wisconsin LLC.
Colliers Barry
Michael Guest purchased the 9,600-square-foot office/light industrial building at 1675 N. Barker Road, Brookfield, from Schuwall LLC.
Mid-America Real Estate
Snap Fitness leased 3,188 square feet of space at 252 E. Menomonee St., Milwaukee, from General Capital Management Inc.
Spirit Halloween Superstores leased 8,400 square feet of space in the Mt. Pleasant Plaza at 5509 Durand Ave., Mt. Pleasant, from Mt. Pleasant Plaza LLC.
Spirit Halloween Superstores leased 8,366 square feet of space in the Grant Park Plaza at 2901 S. Chicago Ave., South Milwaukee, from 2901 South Chicago LLC.
Spirit Halloween Superstores leased 26,600 square feet of space at 2255 Mayfair Road, Wauwatosa from CSM Family Holdings LLC.
Spirit Halloween Superstores leased 7,690 square feet of space in the Hales Corners Shopping Center, 5720 S. 108th St., Hales Corners, from Hales Corners Shopping Center Inc.
Fed Ex Kinko’s leased 1,925 square feet of space at Shoppers World of Brookfield, located at the southwest corner of North 124th Street and Capitol Drive in Brookfield, from Developers Diversified Realty.
Paciugo leased 1,443 square feet of retail space in Brookfield Square Mall from CBL & Associates Properties Inc.
The Hearing Professionals leased 1,475 square feet of space and Anytime Fitness leased 3,796 square feet of space at Ruby Isle, located at North Avenue and Calhoun Road in Brookfield, from Ruby Inc.
Wisconsin Veterinary Referral Center leased 4,452 square feet of space in Schmit’s Pavilion, located at Highway 60 and Port Washington Road in Grafton, from Rick Schmit Rentals Inc.
Anytime Fitness leased 4,095 square feet of space in Burlington Retail Center at 2088 Milwaukee Ave., Burlington, from Highway 36/W Associates.
Anytime Fitness leased 3,430 square feet of space in the Village Square of Delafield, located at the southwest corner of Highway 83 and Highway 16 in Delafield, from Delafield Investment LLC.
Beneficial Finance leased 1,764 square feet of space at 1122 S. Airline Road Suite D, Mt. Pleasant, from 1122 S. Airline Road LLC.
NAI MLG Commercial
Sigma Exteriors Inc. leased 15,228 square feet of space at 301 W. Vogel Road, Milwaukee, from Dan R. and Helen Cassiani Revocable Trust.
Engel & Engel LLC leased 900 square feet of space
at 21005 Watertown Road, Brookfield, from Ace Industrial Properties.
Young Touchstone leased 5,000 square feet of space at 7300 S. 13th St., Oak Creek, from Corporate Square LLC.
Siegel-Gallagher
Parnters Financial leased 1,410 square feet of office space in The Loyalty Building at 611 N. Broadway, Milwaukee, from Stonewater Partners.
Sales
Apex Commercial
Rawson Properties LLC purchased a 27,252-square-foot industrial building at 4200 W. Douglas Ave., Milwaukee, from Lead Group LLC for $550,000.
Dickman Company
KTB Investments LLC purchased 19,000 square feet of industrial space at 12833 W. Glendale Ave., Butler, from Aria Investments LLC.
New construction
Briohn Building Corp., Brookfield, was contracted to design and build a 2,900-square-foot retail tenant improvement for WG&R Sleep Shop at One Mayfair Place, 2751 N. Mayfair Road, Wauwatosa. Briohn was also selected to remodel a 1,685-square-foot interior office space for Goodyear Chiropractic at 5261 N. Port Washington Road, Glendale. Recently, Briohn completed the design and construction of a 7,800-square-foot tenant improvement for Creation Technologies Inc. at 400 Bell Ct., Oak Creek.
