New York-based Whitestone Realty Capital LLC is planning a redevelopment project to create a 124-unit senior apartment complex in the former Malt House building and the former Malt Elevator building, located southwest of North 10th Street and West Juneau Avenue, in the former Pabst brewery complex in downtown Milwaukee.
The 6.5-story Malt House building has 138,386 square feet of space and the 6-level Malt Elevator building has about 5,400 square feet of space.
Whitestone is seeking a loan guarantee through the U.S. Housing and Urban Development (HUD) Department’s section 108 program, which helps provide financing to low- to moderate-income housing developments. The total project cost is $23 million. The HUD loan guarantee is for $12.5 million of the financing. As part of the HUD 108 program, the city must agree to provide $493,000 to secure the loan, said Michael Zuckerman, chief executive officer and managing director of Whitestone Realty Capital.
The building will have 72 independent living units and 52 assisted living units (including 16 memory care units), said Zuckerman. Some of the units will be leased at market rate, for $4,500 to $5,000 a month, and others will be subsidized at $3,500 to $4,000 a month, he said.
Whitestone Realty wanted to do a development in Milwaukee because it is working with another developer on a project in Walworth County that is being financed through the EB-5 program, which provides visas for foreign investors in developments that create jobs. Another project was needed to create the required amount of job creation for their EB-5 funding, Zuckerman said.
Whitestone also wanted to do build a Holiday Inn hotel on a vacant site in the Pabst brewery complex, but city officials said they would not support it because there are several other hotel developments currently in the works downtown, Zuckerman said.
Construction for the senior living facility in the Malt House and Malt Elevator buildings is expected to begin next spring and will take a year to complete. Once complete, the senior living facility will create 240 permanent jobs, Zuuckerman said.
"The goal here is to create jobs," he said.
The Malt House building is a, "magnificent looking building," Zuckerman said. "I love the look of the building."
Whitehouse plans to purchase the Malt House and Malt Elevator buildings from The Brewery Project LLC, which was created by Zilber Ltd. founder Joseph Zilber to transform the former Pabst brewery complex into a mixed-use urban neighborhood.
This is the second senior housing project planned for the Pabst brewery complex. St. Paul, Minn.-based CommonBond Communities plans to build a 48-unit senior apartment development on a 0.42-acre vacant site at the southeast corner of Winnebago Street and North 9th Street. The plans for the four-story, 49,500-square-foot building include 46 units for residents with incomes below the county’s median income and 2 units at market rates.