Wauwatosa-based real estate development firm Irgens announced today that it has secured a $71 million first mortgage loan commitment from a consortium of four banks to finance the development of 833 East, a 17-story office tower that it plans to build near the lakefront in downtown Milwaukee.
Irgens also said that construction of the 358,000-square-foot building at 833 E. Michigan St. is now expected to begin in April.
The banks that are financing the first mortgage loan for the project are The PrivateBank and Associated Bank, which will each provide $24 million in financing, and Bank Mutual and Anchor Bank, which will each provide $11.5 million.
“Associated Bank and The PrivateBank got the job done for us by working with lenders we have successfully partnered with in the past and who understand and appreciate our development execution and capabilities,” said Duane Nolde, executive vice president/chief financial officer of Irgens.
Last week, an affiliate of Irgens acquired a one-acre site for the project from U.S. Bank for $5.4 million. The site is currently occupied by a parking structure, which will be demolished to make way for construction of the new building.
Tenants in the new building will include the Godfrey & Kahn S.C. law firm, Colliers International|Wisconsin and Irgens’ own offices. In a news release today, Irgens said it “continues to work with Colliers Wisconsin to fulfill the pre-leasing commitments required to begin construction.”
Last week, Mark Irgens, chief executive officer/president and manager of Irgens, said, “we still need to achieve a little more leasing before our lending group will let us start construction.”
Once the additional leasing is complete the development will break ground. No additional financing commitments are needed for the project.
“We do not need any additional financing to begin construction,” Irgens spokesman Eric Nelson said today.