After more than 20 years on the market and a contentious zoning approval process last year, a plan to convert a historic industrial building in Milwaukee's Menomonee Valley has inched forward with the sale of the property.
An affiliate of Franklin-based
Sunset Investors, led by developer
Kendall Breunig, purchased the 2-acre property at 324 N. 15th St. for $1.3 million, according to state property records.
Breunig plans to convert the four-story, 56,000-square-foot building into around 40 apartments, which would be a first in the industrial-focused Menomonee Valley.
As a result, he
faced pushback throughout 2024 from nearby businesses and groups that fear allowing housing in the area will push out legacy industrial companies. Breunig ultimately
received city approval to rezone the site and change the area's comprehensive plan to permit apartments, allowing his purchase of the property to move forward.
The area plan generally prohibits residential uses in the Menomonee Valley, but city officials agreed to allow it for this particular building because converting it to housing is seen as the only viable way to save the blighted, late-1800s building, which the city considers historic.
Breunig plans to use historic tax credits to help finance the project.
"I need to get a lot of things approved before I apply for a construction permit, like cleaning methods for brick and timber as well as details on windows and overall plans," Breunig said.
That work, plus environmental remediation, will make the the conversion a three-year project, according to Breunig.
Breunig said it’s likely that 4,500 square feet of the first floor of the building will be occupied by a retail or office user, as well as interest from a tenant for a roughly 8,000-square-foot commercial building he plans to construct just east of the existing structure. However, due to the project's long construction timeline, Sunset Investors has not begun serious lease negotiations with prospective tenants.
The property was listed for sale for $1.95 million by The Barry Co. for more than 20 years, making it the firms longest-listed property. Kurt Van Dyke of The Barry Co. facilitated the deal.
An affiliate of the Read family was the property's seller.
