A joint venture of Milwaukee-based Dixon Development LLC and Madison-based Hovde Properties recently purchased a 106-year-old, seven-story warehouse at 408-38 W. Florida St. in Milwaukee’s Walker’s Point neighborhood for $3.2 million, according to real estate transaction records filed with the state Department of Revenue.
The building has an assessed value of about $2 million according to city records.
The building, which has primarily been used for storage, was sold to Dixon and Hove Properties by Heritage Relocation Services Inc.
The 189,327-square-foot building is located next to the 100-room Iron Horse Hotel at 500 W. Florida St., owned by Dixon Development.
“It’s a beautiful old building. I need to control the building because I need to control the area,” said Dixon Development principal Tim Dixon.
Hovde Properties is owned by former Republican U.S. Senate candidate Eric Hovde and his brother Steve Hovde.
Dixon and Hovde are working on plans for a mixed-use redevelopment of the building with about 9,000 square feet of retail space on the ground floor and about 100 market-rate apartments on the upper floors.
“We like the building,” said Hovde Properties president Michael Slavish. “We think it adapts well for loft style apartments.”
“They will be cool apartments,” Dixon said. “It will bring more people into the area.”
The retail space will include at least one or two restaurants, Dixon said, adding to the restaurant offerings currently provided at the Iron Horse. The building will also provide parking for the Iron Horse, which currently uses numerous locations in the neighborhood as valet parking sites.
Construction for the parking spaces on the basement and first floor of the building could begin within a month and construction work on the rest of the building could begin in a year, Dixon said.