The group responsible for redeveloping the former Shops of Grand Avenue Mall in downtown Milwaukee has purchased the Majestic Loft Apartments, which are in a building connected to the former mall.
According to state records, 225 Wisconsin Partners LLC purchased the portion of the 14-story Majestic building, at 225-233 W. Wisconsin Ave., that contains the 135 residential units for $10.55 million. It has an assessed value of nearly $7.2 million, according to city records.
The records list Josh Krsnak, president and chief executive officer of Minneapolis-based Hempel Cos., as the buyer's agent for 225 Wisconsin Partners. Krsnak is co-owner of the former Grand Avenue mall along with Tony Janowiec, president and chief manager of Milwaukee-based Interstate Development Partners LLC.
The two are transforming the mall into The Avenue
, which includes office space, apartments and a food hall.
An affiliate of Oregon-based Gorman & Co. was the seller. Ted Matkom, Wisconsin market president of Gorman, confirmed the apartments' new owners are The Avenue developers.
He said Gorman was able to sell its portion of the Majestic building, which contains affordable apartments, because it had been more than 15 years since they developed the affordable housing units there. Since the project received low-income housing tax credits, Gorman was required to maintain ownership of the apartments for that time period, with very little exception.
Krsnak and Janowiec already own portions of the first two floors of the building that includes the Walgreens store. Through an affiliate, Haggero's Mall LLC, the two acquired that property in December 2015 for $1.5 million, according to city records.
Altogether, the Majestic building totals roughly 167,700 square feet.
Neither Janowiec nor Krsnak immediately responded to requests for comment.
The Avenue will consist of 190,000 square feet of office space, the 21-tenant 3rd Street Market Hall and the 52-unit Plankinton Clover apartment complex. It will also feature a new public plaza
at the intersection of North Old World Third Street and West Wisconsin Avenue.
Janowiec and Krsnak also own other nearby buildings, including the Matthews Building at 301 W. Wisconsin Ave. and a portion of the ASQ Center
at the southeast corner of Wisconsin and Plankinton avenues as well as its parking structure at 555 N. Plankinton Ave. Both the Matthews building and ASQ building have direct access to the former mall.