A mostly-vacant industrial site at the northern edge of Milwaukee’s Bay View neighborhood could soon be transformed into a major mixed-use development, but only if the city steps up with financial support.
Milwaukee-based developer New Land Enterprises has filed plans to rezone a five-acre site along the east side of South First Street, between East Becher Street and East Lincoln Avenue, to accommodate two new apartment buildings with as many as 500 residential units and retail space, according to managing director Tim Gokhman.
The narrow site is mostly vacant, but includes a small warehouse, and is owned by an affiliate of Mallory Properties, according to Milwaukee County records. The site is adjacent to a large apartment development that is being built by Kenosha-based Bear Development.
To move forward with its plans, New Land is seeking tax incremental financing (TIF) assistance from the city, and is working with Milwaukee’s Department of City Development under its recently-released workforce housing TIF guidelines, which offers support for apartment projects that set aside units for renters earning between 60% and 100% of the area median income (AMI).
New Land is targeting a rental price point for tenants earning between 80% and 85% AMI.
Gokhman is blunt about the economic challenges of building new apartments in Milwaukee without financial support.
“At this point, in order to make an unsubsidized apartment project pencil out in Milwaukee, the end rents have to be over $3 per square foot. It’s not affordable,” Gokhman said. “The market doesn’t need it, and it doesn’t advance the city’s goal of growing its population. You’re not going to grow population by building to the tippy top of the pyramid. That’d be like trying to expand the car market by only building Mercedes-Benzes.”
New Land has already submitted TIF requests in 2023 for two other long-planned apartment projects in the nearby Walker’s Point neighborhood, known as Forma and VIA. The developer resubmitted applications for those in June under the city’s revised TIF guidelines and is anticipating a response soon.
The city’s proposals on those projects will likely influence the future of the First Street development, Gokhman said.
Assuming the city’s TIF support is sufficient for all three projects, New Land hopes to break ground on the First Street project next fall, and Gokhman said he expects construction for Forma and VIA to begin before then.
“Those projects are fully designed and fully entitled. They just need the economic assistance,” Gokhman said.
If built, New Land’s First Street development would add to an intersection that’s booming with housing.
Immediately to the east, Bear Development is beginning to open The Corliss apartment complex, which has 576 apartments for renters earning below 60% AMI. Kitty-corner to New Land’s site, Michels Corp. opened in 2021 the 95-unit Tribute Apartments, which are market rate.
“The Corliss is senior housing and affordable housing, the Michels project is market rate, and our project is that missing piece in the middle,” Gokhman said.
A few blocks to the east, New Land in 2020 opened the 140-unit Kinetik apartment building, which Gokhman said saw strong lease-up and has remained occupied, signaling strong demand for more housing in the area.
“As the area continues to densify, there will be demand for more retail options,” Gokhman said. “First Street is different from (Kinnickinnic Avenue), though, so it’s not easy to predict what kind of retail demand will exist on that street.”
