An affiliate of Beloit-based Hendricks Commercial Properties LLC dropped its option to purchase its first development site near downtown Milwaukee this week.
The company was planning to purchase the 13,289-square-foot warehouse at 135 E. Pittsburgh Ave. and the adjacent parking lot at 120-138 E. Oregon St. in Walker’s Point from Greenfield-based real estate development firm Ener-Con Companies Inc.
The deal fell through during the due diligence process, according to Ener-Con. Calls to Hendricks were not returned.
The Ener-Con management team will be meeting later this month to go over future development plans for the team, Hurst said. Those plans could include a mixed-use development, with retail on the first floor and residential above.
The warehouse will be demolished, Hurst said.
Ursula Twombly, vice president of the Walker’s Point Association, said the association would like to see a parking garage that would include apartments on the site of the surface parking lot. She would like to see apartments and small retail along Pittsburgh.
“It’s quite a large piece of property and there continues to be struggles with that site,” Twombly said. “Other developers have tried to buy the whole block, but it is owned by three different entities and you need agreement from all, which doesn’t happen.”
The warehouse at 135 E. Pittsburgh Ave. is currently occupied by Indian motorcycle manufacturer Royal Enfield
North America Ltd. The building will become vacant on July 1, when the company moves into its permanent home at the former Mitchell Leather Factory & Retail Store building at 226 N. Water St.
Ener-Con purchased the 39,450-square-foot Mitchell building in 2015 and is redeveloping it into Mitchell on Water, a mixed-use building that will include 12 apartments.