LakeView Corporate Park attracts more development

Last updated on May 13th, 2019 at 02:33 pm

Several developments are in the works for LakeView Corporate Park in Pleasant Prairie, demonstrating the growth heading north from Chicago and the strength of the industrial real estate sector in southeastern Wisconsin. Iris USA Inc. plans to build a 249,000-square-foot addition to its corporate headquarters in LakeView.
Prime Outlets, an outlet mall located south of Highway 165 along the east side of Interstate 94 in LakeView, is planning a 150,000-square-foot expansion. That would increase the size of the shopping center by about 50 percent. Prime Outlets’ current tenants include Banana Republic, Gap and Liz Claiborne.
PepsiCo is nearing completion of a 90,000-square-foot distribution center in LakeView.
Milwaukee-based Wispark LLC and Oak Brook, Ill.-based CenterPoint Properties Trust, which are together developing LakeView, plan to build a 300,000-square-foot distribution facility in the corporate park. The warehouse will be built on speculation, in anticipation of attracting tenants later.
"We didn’t have a building available for someone to move right in," said Jamie Jacobs, marketing manager for Wispark. "We thought that was going to hurt us."
The building site has enough space so that the warehouse could later be expanded to 600,000 square feet. The industrial real estate market in Kenosha County is active enough to justify the speculative development, Jacobs said.
Vacancy rates for industrial space in the metro Milwaukee area are lower than in most other major metro areas in the United States. That fact has led some real estate professionals to speculate that there will be more speculative industrial development occurring in the Milwaukee market.
LakeView Corporate Park has additional advantages fueling the demand for industrial space there. The corporate park attracts many of its tenants from northeastern Illinois, where the expansion of the Chicago metro area has eliminated the amount of land available for industrial development. Much of northeastern Illinois is built out, and many communities there that have undeveloped land are resistant to industrial development.
"Our primary target market is Illinois, Lake County and northern Cook County," said Gary Rosecrans, vice president of Wispark. "If you need more than 10 acres of land, you’re going to have to come to see us, because it is very difficult to find that in Cook County or Lake County."
LakeView also offers lower energy costs, lower land costs and lower real estate taxes than in the Chicago area. Workers in Kenosha County typically are paid less than workers in the Chicago area.
"It’s less expensive to do business here than in Illinois," Rosecrans said.
LakeView also is easily accessible for shipping via I-94 or the Union Pacific and Canadian Pacific rail lines.
Wispark began developing the 2,400 acre corporate park in 1987. About 1,600 acres of the corporate park are developable, and only about 550 acres are still available. LakeView has about 8.6 million square feet of commercial space. About 9,200 people work in the corporate park every day.
It will take about 10 years to complete the development of LakeView, Rosecrans said. Once fully developed, the corporate park will have about 15.5 million square feet of commercial space and 15,000 to 16,000 people working there, he said.
Wispark also plans to develop 260 acres southwest of I-94 and County Highway Q. That development will be called PrairieWood Corporate Park. Jockey International plans to move its corporate headquarters from Kenosha to a 70-acre site in PrairieWood. Sewer and water infrastructure has not been installed for that corporate park yet. Jockey’s corporate headquarters could be completed in 2007, though construction has not begun yet. The rest of PrairieWood will not be ready for development for another 2 to 3 years from now.
"We don’t want to compete with ourselves," Jacobs said, referring to LakeView.
The Village of Pleasant Prairie is demolishing several blighted buildings along I-94, including some adult bookstores, to make the area along the freeway more attractive to high-quality development.
Most of LakeView is zoned for industrial development, but the land near I-94 is zoned for office and retail development. Prime Outlets and a Radisson Hotel are located in that area. However, it has been more difficult for LakeView to attract retail and office development because there are still more options for office and retail space in northeastern Illinois, Rosecrans said.
As the village improves the area more office and retail development will occur, encouraging even more development to follow, Rosecrans said. Also, as the Chicago area continues to build up more development will spill north, including office and retail development.
"We believe in the I-94 corridor," Jacobs said.
More Starbucks
Seattle-based Starbucks Corp. plans to open 150 more locations in Wisconsin, adding to the 50 locations the company currently has in the state, according to Mid-America Real Estate, a real estate brokerage that represents Starbucks with leases in Wisconsin. The Nanshe Group LLP plans to build a freestanding building for a Starbucks store at the northwest corner of Appleton Avenue and Menomonee Avenue in Menomonee Falls. In addition, Starbucks recently signed a lease for 1,800 square feet at a new property in Germantown at the northwest corner of Squire Drive and Mequon Road. The Germantown Starbucks is expected to open in September. Starbucks also signed a lease for a 350-square-foot kiosk-sized location at Southridge Mall, 5300 S. 76th St., Greendale. Starbucks also plans to open a location in the Target in Delafield at 2553 Sun Valley Dr.
Muskego
Milwaukee-based M&I Bank plans to build a 4,640-square-foot branch on a vacant lot at the southwest corner of Janesville Road and Moorland Road. M&I has 195 banking offices in Wisconsin, but none in Muskego. The closest M&I branches to Muskego are in New Berlin and Greendale.
Mike Michalski, Matt Stamborski and Marc Novom plan to develop a 16,500-square-foot multi-tenant retail building on a vacant lot at the southwest corner of Janesville Road and Parkland Drive. The site is near a Pick ‘n Save grocery store and across Janesville Road from a Blockbuster Video store. "Muskego is a growing suburb," Michalski said. "(The site) is right in the heart of Muskego." Mountain Mudd Espresso and Domino’s Pizza have committed to occupy a total of 3,000 square feet in the building, Michalski said. The remaining 13,500 square feet of space is still available to lease. Construction should begin soon and be completed by Nov. 1, Michalski said.
G&G Specialized Carriers LLC plans to move from its building in the Muskego industrial park at S83 W19021 Saturn Drive to a new 14,000-square-foot building that will be constructed on a vacant lot on Apollo Drive, also located in the industrial park. Olson’s Power Equipment plans to move from S74 W16810 Janesville Road to the current G&G building. Animal Doctor Inc. will move from space at S74 W17045 Janesville Road to the current Olson’s location.
Brookfield
Milwaukee-based JBK Properties Inc. plans to build a 28,000-square-foot multi-tenant retail center at 17100 W. Greenfield Ave. The site is a vacant property at the northeastern corner of Greenfield Avenue and Calhoun Road. Members of the Brookfield Plan Commission have asked JBK to improve the architecture of the proposed building.
Sheboygan
2108 LLC plans to build a 40,000-square-foot, multi-tenant office and warehouse building on South Taylor Drive in the Sheboygan Business Center.
Glendale
A new, three-story, 12,000-square-foot office building at 6373 N. Jean Nicolet Road and owned by Donald Chudnow, William Druck and Steve Lauenstein, has been completely leased, the three partners announced. Chudnow Druck Lauenstein Inc., a residential real estate appraisal company owned by the partners, shares the second floor with dentist Dr. Mary A. Quinn. The first floor is occupied by the medial offices of four doctors with Bayshore Pediatrics and Children’s Urgent Care, both of which had previously been located at Bayshore Mall. Dennis Russell Appraisal Services and additional office of Bayshore Pediatrics occupy the garden level of the building.

Andrew Weiland is the Managing Editor of Small Business Times. Send news about commercial real estate to Andrew.weiland@biztimes.com or by calling him at (414) 277-8181 ext. 120. News can also be sent to Andrew Weiland, Small Business Times, 1123 N. Water St., Milwaukee, WI 53202

Leases

Colliers Barry
Siemens Real Estate Inc. has leased 16,485 square feet of industrial and office space in the Pewaukee Woods Commerce Center at N29 W23721 Woodgate Court, Pewaukee, from Points West LLC.

Inland Companies
WE Four has leased 2,205 square feet of office space, Advanced Waste has leased 5,693 square feet of office space and Miller and Thompson has leased 1,578 square feet of office space at the West Allis Center, 1126 S. 70th St., West Allis.

American Cable & Electronics has leased 10,080 square feet of office space at Northwest Business Park II, 5490 N. Campbell Drive., Menomonee Falls.

Human Resource Services has leased 1,259 square feet of office space at Airport Atrium, 5007 S. Howell Ave., Milwaukee.

Coverall Cleaning Concepts has leased 5,400 square feet of space at Northwest Business Park I, 13405 W. Silver Spring Dr., Menomonee Falls.

Mid-America Real Estate

Children’s Orchard has leased 1,200 square feet of space at National Plaza, 11064 W. National Ave., West Allis.

2nd Wind Exercise Equipment has leased 6,752 square feet of space at V. Richard’s Plaza, located at the southeast corner of Bluemound and Calhoun roads in Brookfield.

Best Buy has leased 30,000 square feet of space on Richfield Way in Menomonee Falls.

Michael’s has leased 21,881 square feet of space at Bluemound Road and Executive Drive in Brookfield from Continental Properties.

E-Sell has leased 1,200 square feet of space at Ruby Isle Shopping Center, 2205 N. Calhoun Road, Brookfield, from Rudy Inc.

China Buffet has leased 2,697 square feet of space at Falls Plaza, 14900-15100 W. Appleton Ave., Menomonee Falls, from Falls Plaza LLC.

Great Clips has leased 1,600 square feet of space at Holt Plaza, located at the northeast corner of Holt and Chase in Milwaukee.

Quizno’s has leased 1,600 square feet of space at Falls Plaza, 14900-15100 W. Appleton Ave., Menomonee Falls, from Falls Plaza LLC. Quizno’s recently opened new locations at 6150 N. Port Washington Road, Glendale, and at 12894 W. Bluemound Road in Elm Grove. Quizno’s plans to open another location at 12132 W. Capitol Dr., Wauwatosa.

Jimmy John’s has leased 1,539 square feet of space at the Oak Creek Target development, at the southwest corner of Howell and Centennial, in Oak Creek, from Gabaldon Properties.

Papa Murphy’s has leased 1,587 square feet of space at Greentree Center, 5111 Douglas Ave., Caledonia, from Hallmark G.

OfficeMax leased 70,000 square feet of space at Moorland Commons, located at the northeast corner of Moorland and Beloit roads in New Berlin.

Wangard Partners

Aurora Health Care has leased 3,960 square feet of space in the Maple Grove Shopping Center, located at Highway 11 and 67th Drive in Union Grove. In addition, the shopping center is planning a 10,000-square-foot expansion.

Initial Tropical Plants has leased 17,520 square feet of space in the Eastgate Business Center at 13040 W. Lisbon Road, Brookfield, from Eastgate LLC. Eastgate Business Center has over 120,000 square feet of office and warehouse space. A 35,000-square-foot addition is expected to be complete by next year.

Sales

Dickman Company Inc.

J.H. Findorff & Son Inc. purchased 23,437 square feet of industrial space at 1600 N. 6th St., Milwaukee, from Kenneth E. Knackert. The sale price was $1.14 million.

Inland Companies

CCS Holdings purchased a 45,000-square-foot building at 9411 W. Fond du Lac Ave., Milwaukee.
4th Dimension Design Inc. purchased six acres at the Waukesha Corporate Center.

Louis Gral Investment Real Estate Inc.

BR Properties 1 LLC purchased a 42,480-square-foot, four tenant industrial building at 6860-6880 S. 10th St., Oak Creek, from Bituminous Distributors Inc. The sale price was $1.4 million.

Gerald E. Garrett and Ethel M. Garrett purchased a five-unit office complex at 6410-6416 S. Howell Ave., Oak Creek, from Gerald R. Labodda and Audrey Labodda Revocable Trust. The sale price was $625,000.

Mid-American Real Estate

Buffalo Wild Wings Grill & Bar purchased a 1.6 acre outlot at the Woodman’s Retail Center, located northeast of Highway 50 and I-94 in Kenosha.

NAI MLG Commercial

Vision Realty Partners Ltd. purchased a 20,000-square-foot retail building at 5312 W. Burleigh St., Milwaukee, from the Burleigh Street Community Development Corporation.

Wangard Partners

Midwest Property Management LLC purchased a 15,000-square-foot office building on South 102nd Street in West Allis from Ronald and Roberta Prospeck. The sale price was $1.1 million.

New construction

Keller Inc. is building the 8,748-square-foot laser cutting fabrication shop and office for Metalwerx Inc., 755 Tower Dr., Fredonia. The project is expected to be completed this summer.

DBI Inc., Pewaukee, will build an expansion for the Heritage Christian Schools high school addition in West Allis. The project will add 14 classrooms, two science labs, a technology lab, office space, a gymnasium and locker rooms.

The Redmond Company, Waukesha, was selected by TOLD Development Company to provide construction management services for the second phase of the Shoppes at Nagawaukee retail development at I-94 and Highway 83 in Delafield. The second phase of the development includes a two-story, 80,000-square-foot retail building and an 18,000-square-foot retail building. The Redmond Company recently completed the buildout of the 5,760-square-foot West Marine retail store in the Shoppes at Nagawaukee. The Redmond Company is also building a 25,000-square-foot, upscale multi-tenant retail center at 8907 Howell Ave., Oak Creek, for Gabaldon Properties.

MSI General Corp., Oconomowoc, was selected to design and build a 1,200-square-foot tanning salon for Rio Tan at W359 N5002 Brown St., Oconomowoc. Ann Pawlinski, owner of Breezes Day Spa in Milwaukee, plans to open a luxury tanning salon, called Rio Tan, on the first floor of the Oconomowoc Lakes Plaza. Rio Tan is scheduled to open in August.

Briohn Building Corp., Brookfield, recently completed the design and construction of a new testing facility for Waukesha Bearings Corp., at W231 N2811 Roundy Circle East, Pewaukee.

KVG Building Corp., Milwaukee, is building the new 15,000-square-foot retail store and warehouse, at the corner of Sunset Drive and Sentry Drive in Waukesha, for Master Z’s Pool and Dart Supplies.

June 10, 2005, Small Business Times, Milwaukee, WI

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