By Andrew Weiland, of SBT
M
otion Fitness and Racquet Club Inc., one of the largest fitness centers in southeastern Wisconsin, plans to build three more large health clubs in the metropolitan Milwaukee area, said Mike Kuglitsch, general manager, vice president and an investor with Motion Fitness.
Motion Fitness has a 146,000-square-foot facility in New Berlin that opened in 2002. The company has submitted plans to build similar health clubs in Grafton and Menomonee Falls.
In addition, the company is looking for a site in the metro Milwaukee area for a fourth health club, Kuglitsch said. Motion Fitness typically seeks sites with 15 to 18 acres of land to build a health club.
The company’s goal is to have four health clubs operating by 2010, Kuglitsch said.
The New Berlin facility has about 170 employees, and about 40 of them are full-time, Kuglitsch said. Additional locations would have similar numbers of employees.
All of the new health clubs will be approximately 150,000-square-foot buildings, Kuglitsch. They will be similar to the New Berlin Motion Fitness facility, which has numerous amenities, including: six indoor and six outdoor tennis courts; weight and cardiovascular rooms with more than 100 pieces of cardio equipment and more than 90 pieces of combined circuit and free weight strength training equipment; three group exercise studios (one is a spin studio with 42 spin bikes); an aquatics center with a lap pool, a whirlpool and an activity pool with water slides; three racquetball courts; two NBA-sized basketball courts; a golf area; a sand volleyball court; a children’s gym; a Subway restaurant; and a sports bar.
Motion Fitness describes its facilities as “super clubs,” Kuglitsch said.
“We are the only club in the Milwaukee area that has all of the amenities that we have,” he said.
The Menomonee Falls health club would be built on a 16-acre site at the southeast corner of Highland Drive and Good Hope Road, which is about a half mile from U.S. Highway 41/45, just outside the City of Milwaukee and just south of the Heritage Reserve office park.
“When you look at (the Menomonee Falls) area, it is underserved right now for a large super club like we have,” Kuglitsch said.
In Grafton, Motion Fitness plans to build a facility on a 15-acre site that is part of a 76-acre property located southwest of Port Washington Road and Arrowhead Drive. Waukesha-based Venture Development is planning development for the 76-acre site, and the Motion Fitness health club would be part of it. Venture Development is asking Grafton to annex the property into the village. The company presented a conceptual plan to the village in August, and village officials are waiting for the company to submit a formal proposal, said village administrator Darrell Hofland.
With sites in New Berlin, Grafton and Menomonee Falls, Motion Fitness would have locations in the southwest, northwest and northeast parts of the metro area. The company is still thinking about where its fourth location will be, Kuglitsch said. Based on the first three locations, the southeast part of the metro area would make sense for the fourth location, he said.
However, Oak Creek and northern Racine County have a lower population density than the other Motion Fitness sites, Kuglitsch said. Therefore, the company may instead look for a site along the Interstate 94 corridor in Waukesha County, such as Delafield, he said.
The clubs typically draw customers from an area within seven miles, Kuglitsch said. However, Motion Fitness thinks a facility close to Highway 41/45 in Menomonee Falls could attract members from farther away in Washington County, such as West Bend and Slinger, who work in Milwaukee and want to exercise before or after work, he said.
The Motion Fitness and Racquet Club facility in New Berlin, at 14999 W. Beloit Road, has about 5,700 members, Kuglitsch said. Memberships cost between $53.95 and $73.95 a month.
It takes about a year for Motion Fitness to build its clubs, Kuglitsch said. The company hopes to begin construction on the Grafton project before the end of the year, but the start for the Menomonee Falls project is uncertain, he said.
Union Grove moves to block ethanol plant
The Union Grove Village Board recently decided to take advantage of a little-used state law to establish extraterritorial zoning authority within a mile of the village limits. The board is taking action because village officials oppose plans by Bob Kordus, owner of Union Grove-based Asphalt Contractors Inc., to build an ethanol plant just outside of Union Grove in the Town of Dover. Kordus wants to build the plant on a 100-acre site north of Highway 11 and about half a mile west of Union Grove. The extraterritorial zoning authority would give Union Grove zoning control over the site of the proposed ethanol plant.
The extraterritorial zoning authority employed by Union Grove is the same technique being used by Oconomowoc to allow Aurora Health Care to build a hospital in the Town of Summit. Oconomowoc did that after Aurora won a court battle against the city to build a hospital there. However, Oconomowoc officials want a regional shopping center to be built there, and preferred that the hospital to be built in Summit. The Waukesha County Board had blocked the hospital plans for Summit, so Oconomowoc exercised its extraterritorial zoning rights to circumvent the County Board.
Huge development planned in Twin Lakes
It’s yet another sign that the Chicago market is spreading north into Wisconsin: an Illinois company is planning a large residential development in Twin Lakes, which is just north of the state line in western Kenosha County.
The village recently annexed 1,240 acres, located around the intersection of County Highways C and KD, where Fox Lake, Ill.-based Thelen Sand and Gravel Inc. wants to create a 400-acre sand and gravel mine on the east side of Twin Lakes. After 10 to 20 years, the mine will fill in with ground water, and the company plans to develop about 1,240 residential homes around the manmade lake, said Steve Thelen, president of Thelen Sand and Gravel.
The development still must be approved by village officials.
Pleasant Prairie
Wispark LLC, the real estate development arm of Milwaukee-based Wisconsin Energy Corp., plans to build a 500,000-square-foot speculative industrial building on a 28-acre lot on the west side of 80th Avenue, just south of the building at 8201 109th St. in LakeView Corporate Park. Construction is expected to begin by the end of the month and be completed in July, said Gary Rosecrans, Wispark vice president. The building could be used for distribution or manufacturing, he said, and could later be expanded to 1,025,000 square feet of space. Wispark has attracted several industrial and distribution companies from Illinois to LakeView.
“It’s generally regarded as a less expensive place to do business (than the Chicago area),” Rosecrans said. Land costs, real estate taxes, construction costs and energy costs and generally lower in Pleasant Prairie than in the Chicago area, he said.
The project will be similar to a 300,000-square-foot speculative building that Wispark built in LakeView in 2005, Rosecrans said. The building is now occupied by Uline Shipping Supplies and is being expanded to 600,000 square feet, which will be completed next year. “We think there are companies like Uline that will lease the space (in the 500,000-square-foot building),” Rosecrans said.
Racine
Milwaukee is not the only city where old industrial buildings are being converted into residential buildings. In Racine, construction began recently on the Riverbend Lofts project. Kenosha-based Harvest Development Inc. is transforming the brick, four-story former Badger Uniform Building into a loft condominium building with 58 units in the first phase and 28 townhouses adjacent to the building in the project’s second phase. The project includes live-work units, which allow residents to purchase a second floor office space and attach it to their second floor condominium. The building is located just east of the Root River on the corner of 6th Street and Marquette Streets in downtown Racine’s art district. The condos will be priced between $65,000 and just over $200,000. Construction on the $15 million project is expected to be complete by April.
Milwaukee
Bruegger’s, a Burlington, Vt.-based chain of bagel bakeries, plans to open a location at 753 N. Water St., at the northwest corner of Mason and Water streets in downtown Milwaukee. The three-story, 106-year-old building was renovated last year and is owned by Dermond Associates LLC. Bruegger’s has 250 locations in 18 states including four in the Milwaukee area in Brookfield, Wauwatosa, Whitefish Bay and Oconomowoc.
Dinner by Design, a Grayslake, Ill.-based chain of home meal prep kitchens, plans to open a location in the City of Milwaukee in a 1,800-square-foot space at 2121 S. Kinnickinnic Ave. in the Bay View neighborhood. Dinner by Design already has locations in Brookfield, Delafield, Glendale, Grafton, Greenfield, Kenosha, Menomonee Falls, New Berlin, Oak Creek, Racine and Waukesha. The Boerke Company Inc. brokered both sides of the lease between Dinner by Design and the building’s owner.
Menomonee Falls
Shecterle Properties LLC plans to build four retail buildings, with a total of about 41,000 square feet of space, on a 6.25-acre site at the northeast corner of Pilgrim Road and Silver Spring Drive. A tavern, DJ’s Lounge, and a single-family home would be demolished to clear room for the development.
Megal Development Corp. plans to build a 19,238-square-foot industrial building on a vacant 3.3-acre site on the south side of County Line Road and east of the McDermott Cue building at W146 N9560 Held Dr.
Port Washington
Developer Brian Kliesmet plans to build a 9,300-square-foot multi-tenant retail building anchored by a 2,700-square-foot Grafton State Bank branch on a three-acre property at the northwest corner of Sauk Road and Highway 32. Later, in the second phase of the development, Kliesmet wants to build a convenience store/car wash/gas station building, which may also include a fast food restaurant. Grafton State Bank, which has about $187 million in assets, is owned by New Berlin-based Merchants and Manufacturers Bancorporation Inc. and has additional locations in Grafton, the Town of Grafton, Saukville and Cedarburg.
Wauwatosa
Bryant and Stratton College plans to expand its Wauwatosa campus at 10950 W. Potter Road. The campus is located in the former Empire Level building. The college currently occupies 33,000 square feet of space in the building and plans to use an additional 13,000 square feet in the building, for a total of 46,000 square feet. The college needs the additional space because of the growth of the nursing and surgical technician programs at the campus. Bryant and Stratton has 15 campuses in New York, Ohio, Virginia and Wisconsin and added the Wauwatosa campus in 2004.
Oconomowoc
Plank Road Lanes, a bowling alley at 360903 Plank Road, Oconomowoc Lake, plans to move and will occupy about two-thirds of a 34,282-square-foot building at 965 Cannongate Road, which is part of Olympia Sports Center and located at Olympia Resort & Conference Center. The sports center, which also includes a golf course and a ski hill, is owned by Jeffrey Statz and is a separate entity from the resort. The 34,282-square-foot building is currently occupied by indoor tennis courts. “In terms of the revenue per square foot, we’re projecting 10 to 15 times more revenue with bowling than with tennis,” Statz said. The bowling alley will also have a bar and an arcade. The rest of the building will be used for laser tag, miniature golf, or some other activity appealing to children, he said. At its current location Plank Road Lanes has 24 lanes and about 500 members, Statz said. At the new location, which is expected to open around March 1, it will have 30 lanes.
Pewaukee
Aspen Homes plans to build a two-story, 5,000-square-foot commercial building at 325 Oakton Ave. in downtown Pewaukee. The company recently demolished a single family home on the property. Aspen Homes plans to move its headquarters there from an office building at 1133 Quail Court, Pewaukee, just off of Capitol Drive. The company would occupy most of the second floor and lease the rest of that floor and the first floor to office or retail tenants.
Brookfield
Cream City Music, a guitar shop, plans to move from 2637 S. Kinnickinnic Ave., Milwaukee, to a larger space at 12501 W. Bluemound Road, Brookfield. The store’s owner, Joe Gallenberger, had been scouting new locations for months. He and business partner Paul Wehrley of Wehrley-Gallenberger LLC purchased the building in July, and Gallenberger plans to open the new store sometime this fall. The store, which sells guitars and guitar equipment locally through a retail showroom and worldwide via internet sales, has been on Kinnickinnic Avenue for seven years.
The Wisconsin location of Ottawa University recently moved from 300 N. Corporate Drive. Brookfield, to 245 S. Executive Drive, Suite 110, Brookfield.
Commercial Real Estate Transactions
Leases
Boerke Company
Dinner by Design leased 1,800 square feet of retail space in Bayview Commons at 2121 S. Kinnickinnic Ave., Milwaukee.
Herro Ventures Inc. leased 7,000 square feet of retail space at 4450-70 S. 108th St., Greenfield, from Roberta A. Konzall.
Inland Companies
House of Carrington leased 15,000 square feet of flex space at Cottonwood IV, 1100 Cottonwood Ave., Hartland.
Concord Electric Supply leased 8,200 square feet of industrial space at 5801 S. Pennsylvania Ave., Cudahy.
ALC Controls Inc. leased 7,906 square feet of flex space at West Bay Commerce Center, 7100 Donges Bay Road, Mequon.
Beverage One leased 5,000 square feet of flex space at West Allis Commercial Center, 2006-2142 S. 55th St., West Allis.
Health & Disability Advocates leased 1,020 square feet of office space at West Allis Center, 1126 S. 70th St., West Allis.
LEM USA leased 10,483 square feet of flex space at Park Place Technology Center, 11701 W. Bradley Road, Milwaukee.
New Millenium Title Inc. leased 2,422 square feet of office space at Executive Center VI, 400 N. Executive Dr., Brookfield.
OnCourse Information Services leased 3,600 square feet of flex space at Glendale Business Center, 6575-6693 N. Sidney Place, Glendale.
Restoration Specialty leased 5,000 square feet of flex space at West Allis Commercial Center, 2006-2142 S. 55th St., West Allis.
Judson & Associates
Fun Things Toy Service Inc. leased 8,036 square feet of space at S81 W19079 Apollo Dr., Muskego, from D.T.J. Investments LLC.
Scan Interiors leased 2,000 square feet of space at 755 Larry Ct., Brookfield, from Current Investments LLC.
Digital Intelligence Inc. leased 654 square feet of space at N35 W21140 Capitol Dr., Pewaukee, from AKO Enterprises Inc.
Sendiks (GMAC) leased 3,955 square feet of space at 18985 W. Capitol Dr., Brookfield, from Thompson Corp.
Inveno LLC leased 1,400 square feet of space at 1275 E. Wisconsin Ave., Pewaukee, from Sawyer Enterprises.
Bio Markinetics LLC leased 4,470 square feet of space at W226 N767 Eastmound Dr., Waukesha, from Eastmound Commerce Centre.
Farris Automated Systems leased 3,750 square feet of space at 700 Rose Dr., Hartland, from Crossroads Investments LLC.
Promotional Edge LLC leased 7,739 square feet of space at 1801 Airport Road, Waukesha, from Sky View Suites.
Mid-America Real Estate
Games Workshop Retail Inc. leased 1,500 square feet of space at Layton Plaza, 7497 W. Layton Ave. Greenfield, from Wave Management.
D Edwards Fine Dry Cleaning Inc. leased 934 square feet of space at Walker’s Point Plaza 605 S. First St., Milwaukee, from Horner Sod Farm Partnership LLP.
Panchero’s leased 2,456 square feet of space at Shoppes on 100, 2923 S. 108th St., West Allis, from CEDII LLC.
RFP Commercial
Executive Consulting leased 3,472 square feet of office space at 1040 S. 70th St., West Allis, from 1126 West Allis Operating Associates.
Medical Technology leased 3,898 square feet of office space at 20900 Swenson Dr., Waukesha, from Capri Capital Advisors.
Equity 1 Mortgage leased 1,849 square feet of office space at 330 S. Executive Dr., Brookfield, from Capri Capital Advisors.
Ace Mortgage Funding leased 12,909 square feet of office space at 125 S. 84th St., Milwaukee, from Opus Real Estate.
Hong Hing Inc. leased 3,850 square feet of retail space at 5430 N. Lovers Lane, Milwaukee, from RAP of Pewaukee LLC.
Apron Annie’s leased 2,052 square feet of retail space at 2566 Sun Valley Dr., Delafield, from Gary Storts.
EMSystems leased 8,111 square feet of office space at 135 S. 84th St., Milwaukee, from Opus Real Estate.
Robert’s Specialty Meats leased 1,909 square feet of retail space at 135 E. Sunset Dr., Waukesha, from Scherf Properties.
Blood Center of Wisconsin leased 21,210 square feet of industrial space at 2152 S. 114th St., West Allis, from Premises Management.
Educational Credential Evaluators leased 2,632 square feet of office space at 242-260 E. Highland Ave., Milwaukee, from CC 252 Highland LLC.
CDM leased 5,512 square feet of office space, Avenue Fabricare leased 328 square feet of office space, Valuation Research leased 9,636 square feet of office space, Chernov, Stern & Krings leased 3,658 square feet of office space, Melnick & Melnick leased 1,659 square feet of office space and EMC leased 8,623 square feet of office space at 330 E. Kilbourn Ave., Milwaukee, from Plaza East Inc.
PJ’s Dental leased 747 square feet of office space at 1040 S. 70th St., West Allis, from 1126 West Allis Operating Associates.
A-Ware Software leased 1,407 square feet of office space, Sentry Insurance leased 1,393 square feet of office space, Brookfield Investment Partners leased 1,172 square feet of office space and Fireman’s Fund Insurance leased 2,313 square feet of office space at 330 S. Executive Dr., Brookfield, from Capri Capital Advisors.
Apollo Tan leased 4,165 square feet of retail space at 6710 W. Brown Deer Road, Brown Deer, from American TV and Appliance, Madison.
Newport Retirement Services leased 2,139 square feet of office space at 10850 W. Park Place, Milwaukee, from Two Park Place LLC.
Sales
Boerke Company
Surfaces Transport purchased a 94,472-square-foot industrial building at 7320-7400 W. Florist Ave., Milwaukee, from Jack L. Marcus.
Inland Companies
Wisconsin Retail Property Management LLC purchased 3.153 acres at Highway 33 and Trenton Road in West Bend.
1st Growth LLC purchased 21 acres of land at North 99th Street and West Bradley Road in Milwaukee.
Reinhart Foods purchased 27 acres of land on South 27th Street in Milwaukee.
Judson & Associates
BLTTLB-Bruce Johnson purchased 2,400 square feet of space at W300 N7672 Christine Lane, Merton, from Newfield Properties-Schneider.
Karides Properties LLC purchased 7,500 square feet of space at 205 Wilmont Dr., Waukesha, from Becco, Henderson, Syga.
James Frank Properties purchased 8,400 square feet of space at 1921 West Ave., Waukesha, from Bemar Group LLC.
RFP Commercial
D&K Management purchased 24,000 square feet of office space at 1230 Corporate Center Dr., Oconomowoc, from Wood Place LLC, for $3,416,667.
WRTP Inc. purchased 31,700 square feet of office space at 3841 W. Wisconsin Ave., Milwaukee, from Mark and Robert Halaska for $850,000
Riverwood Ventures purchased 3.29 acres on Riverwood Drive in Pewaukee from Transwestern Investment Co. for $494,100.
Dr. Jenine James Living Trust purchased 13,000 square feet of office space at 3351 N. Dr. Martin Luther King Jr. Dr., Milwaukee, from The Garfield Foundation, for $465,000.
Kohl’s purchased 24,000 square feet of industrial space at W165 N5800 Ridgeview Dr., Menomonee Falls, from Lee Middleton Dolls, for $1.6 million.
Assisted Living Concepts purchased 57,137 square feet of office space at W140 N8981 Lily Road, Menomonee Falls, from Strong Financial, for $5 million.
