Milwaukee-based
KG Development is anticipating a December groundbreaking for an apartment building in Milwaukee's Five Points neighborhood that it originally proposed in early 2020.
The project, called Five Points Lofts, is proposed for a site at 3317-3349 N. Dr. Martin Luther King Jr. Drive, which is just north of W. Concordia Avenue and across the street nonprofit group Bader Philanthropies' headquarters.
The five-story building would include 55 apartment units, 46 of which would be rented at below-market rates, with rents ranging from $469 to $1,345 per month. The first floor will have about 7,500 square feet of commercial space.
KG Development's
Anthony Kazee, who is partnering on the project with the
Martin Luther King Economic Development Corporation, said development costs increased from $13 million to $19 million, which postponed the project's construction start.
The partners have since reduced the cost of the project to about $16.4 million through value engineering and reduced development fees, Kazee said at a meeting of Milwaukee's Redevelopment Authority last week.
The developers are expecting to close on their financing package Dec. 1, followed by a December construction start, Kazee said. That financing package includes tax incremental financing, low income tax credits, Wisconsin Housing and Economic Development Authority mortgage financing, ARPA funds, and other grants, according to city of Milwaukee documents.
The Redevelopment Authority approved a $700,000 brownfield cleanup loan for the project. A paint store, with a known spill, and a repair shop for pianos and refrigerators once occupied the site.
