More Financial News

Moderne gets final approval for HUD loan guarantee; Ex-Im Bank approves loan application for Bucyrus equipment; Sattell Johnson Appel consolidates in Menomonee Falls

Moderne gets final approval for HUD loan guarantee

The U.S. Department of Housing and Urban Development today gave final approval for a $42 million loan guarantee for The Moderne, a 30-story building that will be constructed at the southwest corner of Juneau Avenue and Old World Third Street in the Park East corridor in downtown Milwaukee.

A HUD spokesperson this afternoon confirmed that the loan guarantee was approved.

It will take about five to six weeks to complete the final closing of the financing for the project, so construction will probably begin in October, said Rick Barrett, the developer for The Moderne.

The $55 million building will have 203 apartments, 14 condominiums and first-floor retail space.

The $42 million loan for the project is from the AFL-CIO Investment Trust and will be guaranteed by HUD’s 221(d)4 program. The project also received a $9.3 million loan from the City of Milwaukee, which was approved last year.

The approval process for the HUD loan guarantee dragged on for months. The capital markets for real estate development are extremely tight, so HUD has been swamped by developers seeking financing assistance. As a result, the approval for The Moderne’s loan guarantee was delayed. Previously, Barrett had hoped to break ground in February.

J.H. Findorff & Son Inc. is the general contractor for the project. The architect is Milwaukee-based Rinka Chung Architecture Inc.

Ex-Im Bank approves loan application for Bucyrus equipment

The U.S. Export-Import Bank has approved $600 million in loan guarantees for Bucyrus International Inc. to manufacture mining equipment for a power-plant operator in India.

According to Bucyrus spokeswoman Amy Malingowski, the loan application will now go to Congress for final consideration, and the company expects that decision within 30 days.

“The bank had a team of people over in India reviewing the site, and we were optimistic it would be approved,” Malingowski said.

The $600 million in financing was sought to help an Indian firm, Reliance Power Ltd., to buy Bucyrus mining equipment that would be used for a coal mine that is to supply a power plant under construction at Sasan in the Indian state of Madhya Pradesh.

The Ex-Im Bank reversed its initial rejection of the loan application because of concerns that the equipment would be used to mine coal, which is not a clean-burning fuel.

Hundreds of jobs at South Milwaukee-based Bucyrus are at stake with the loan application. If the loan is not approved, Reliance Power is prepared to buy the equipment from overseas competitors.

The bank reconsidered its decision after receiving pressure from the White House and Wisconsin’s congressional delegation.

Sattell Johnson Appel consolidates into single facility in Menomonee Falls

The CPA firm of Sattell Johnson Appel is consolidating into a single facility in Menomonee Falls. The firm has will close its office in downtown Milwaukee later this week – all of its 36 employees will work in its Menomonee Falls location.

The company said its decision to consolidate offices was made because of a customer survey, which indicated that customers were indifferent to the company’s location.

Sattell Johnson Appel’s consolidated office will be about 16,000 square feet. Its Menomonee Falls office was previously about 7,000 square feet – the expansion is large enough for all of its employees and some future growth space, said Michael Sattell, managing partner with the firm.

 

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