Hoping to fill some "white space" in downtown Milwaukee's hotel market, Middleton-based
North Central Group Hospitality (NCG) is planning to convert a century-old industrial building in the Historic Third Ward into a 133-room
AC Hotel by Marriott.
The proposed hotel would be located at 224 E. Chicago St., inside a three-story, 83,260-square-foot building originally constructed in 1917 for Monarch Manufacturing Co. While the building’s large floor plates and industrial design have posed some challenges for reuse, NCG sees those elements as an opportunity to create a distinct guest experience.
"We initially passed on the building when we were approached to buy it in 2023 because it's just a tough shape for a hotel," said
Blake Richter, development project manager at NCG. "But then we thought that maybe there were some ways to get creative with it,"
The building has large floor plates of more than 27,000 square feet, which make for an "oversized" lobby that NCG plans to fill with multiple food and beverage offerings, including one with a “bar-cierge" concept—a lobby bar employee who will also serve as a local concierge, helping guests navigate the neighborhood.
"The AC has brand prototypes like AC Kitchen, AC Lounge, so there'll be some sort of food and beverage component in there, but (the lobby) is probably twice as big as we need," said
Andy Inman, chief development officer for NCG. "There's a lot of options and flexibility as to what to do with that space, and I'm super excited to see what our design team comes up with."
A central atrium built around existing skylights will help bring natural light to all three floors of the building.
NCG is also exploring the addition of a sidewalk patio along Chicago Street, as well as converting the building’s garden-level parking into retail or restaurant space.
This would mark NCG’s third Milwaukee hotel project. The firm opened The Trade in Deer District in 2023 and expects to break ground next year on the Moxy, also in Deer District.
"We kind of view it like Deer District is one bookend and the Third Ward is another bookend to downtown," Inman said, adding that the Third Ward's mix of historic architecture, retail, restaurants and other entertainment offerings attracted the firm to the neighborhood.
Inman described the AC as "design and arts-centric," which he said is a natural fit in the Third Ward.
"It's about being smart and finding the right brand for the right location," he said.
If built, the hotel would become only the second in the Historic Third Ward, joining the 158-room Kimpton Journeyman Hotel, which opened in 2016 just a block away. In 2021, Wimmer Communities proposed a 102-room hotel at 125 N. Water St., but construction has not commenced.
Despite broader challenges in Milwaukee’s hospitality market — including bankruptcies at the Iron Horse Hotel and downtown Marriott, financial trouble at other downtown properties and Marcus Corp. taking 175 rooms at the Hilton Milwaukee off the market — NCG remains optimistic.
"Milwaukee certainly has its challenges from a hospitality perspective, and some of the product is dated, some is maybe in the wrong location," Inman said. "But we view our role as, how can we fill in some of the white space, how can we help the city overall attract more tourists."
NCG will present its plans publicly for the first time on Wednesday to the Historic Third Ward Architectural Review Board, which is not scheduled to take any official action on the proposal.
When seeking entitlements for the Moxy earlier this year, NCG faced opposition from the Milwaukee Area Service and Hospitality Workers Organization (MASH) and some Common Council members.
Inman said that preliminary conversations with local officials have been positive.
Assuming approvals go smoothly, NCG hopes to begin construction on the AC Hotel in the Third Ward next year.
As the entitlement process for the AC Hotel progresses, NCG plans to purchase the Chicago Street property, which is currently owned by an affiliate of Madison-based
Rubin's Furniture.
NCG previously purchased one of Rubin's Madison stores and redeveloped it as The Saddlery, a boutique hotel in downtown Madison.
Rubin's was a tenant in the Chicago Street building until 2015, when high-end furniture store
Restoration Hardware moved in. A portion of the second floor office space is occupied by marketing firm
Cramer-Krasselt, with the remaining 40,100 square feet being marketed for lease by Colliers.
