Interstate Partners LLC is working on plans to build five industrial buildings in the City of Pewaukee, according to documents the company has filed with the city.
On the front burner is a proposed 78,000-square-foot industrial building at N15 W23500 Stone Ridge Dr. in Interstate’s RidgeView Corporate Park development. The building would be occupied by Pro Mach Inc., according to documents submitted to the city.
However, “there is no signed agreement on the deal yet,” said Jeff Whipple, development associate for Interstate Partners.
Last year, Loveland, Ohio-based Pro Mach acquired Milwaukee-based Federal Manufacturing Co., a manufacturer of liquid filling and capping machinery. Federal Manufacturing is currently located at 201 W. Walker St., in the city’s Walker’s Point neighborhood.
Representatives for Pro Mach and Federal Manufacturing could not be reached for comment. Kevin Barry of Cassidy Turley Barry, who represents Pro Mach and Federal Manufacturing, also declined to comment.
Documents filed with the City of Pewaukee describe Pro Mach as a “manufacturer of filling and capping machinery and related auxiliary machinery,” which matches the description of Federal Manufacturing. Pro Mach will have 75 employees in the building, according to the documents. The building will have 65,750 square feet of production space and 12,250 square feet of office space.
The proposed new building would be built on an 8-acre site in RidgeView Corporate Park, which is located northwest of I-94 and Highway F. The general contractor for the project is Butler-based Berghammer Construction Corp. and the architect is Milwaukee-based Eppstein Uhen Architects.
The project will be reviewed Thursday by the City of Pewaukee Plan Commission.
The Plan Commission will also review conceptual plans for four other industrial buildings that Interstate Partners wants to build. No tenants have been announced for those projects.
Two of the buildings, one a 113,000-square-foot industrial building and a 20,000-square-foot industrial building, would be located along the south side of Watertown Road in RidgeView Corporate Park. The sites are across the street from the Waukesha Gun Club, located at N22 W23170 Watertown Road.
The other two buildings would be located in a business park that Interstate Partners wants to develop on the north side of Bluemound Road between Pewaukee Road and Busse Road. Called Bluemound Corporate Park, it would be developed in two phases with a 100,000-square-foot industrial building in the first phase and a 75,000-square-foot industrial building in the second phase.
Each of the buildings will likely be built when at least some of the space is pre-leased, Whipple said, but the firm has considered doing some of the buildings totally on speculation, he said.
“That’s something we’ve debated here in the office, whether to go forward with a 100 percent spec building,” Whipple said. “Certainly the deal is easier to do with a tenant committed to at least a portion of the building.”
Interstate Partners’ building plans in Pewaukee are largely a reaction to the strength of the the metro Milwaukee industrial real estate market, which has had 13 consecutive quarters of positive absorption and a vacancy rate of 6.6 percent. The industrial space vacancy rate in Waukesha County is ever lower, at 4.2 percent, according to Xceligent.
“As I’ve gone out and talked with industrial real estate brokers, they all say there is a need for high quality industrial space of 50,000 and up,” Whipple said. “That product is dwindling. In their opinion, a new buiding should do well in this area. If you’ve got a large user looking for quality (industrial) space, its getting hard to come by in the Waukesha-Pewaukee submarket.”