The Avenue developers to get MEDC loan for purchase of food hall equipment

Committee approves request for $500,000 loan

3rd Street Market food hall rendering.

Last updated on November 21st, 2019 at 02:36 pm

The group that is redeveloping the former Shops of Grand Avenue in downtown Milwaukee is receiving financial assistance from the Milwaukee Economic Development Corp. to purchase equipment for the project’s planned food hall.

This morning, the MEDC’s Loan Committee approved a request for a $500,000 loan to Haggero’s Mall LLC, the ownership group of the former Grand Avenue mall property located at 275 W. Wisconsin Ave. According to MEDC documents, the loan would assist in the financing of equipment related to the 3rd Street Market Hall, a 35,000-square-foot food hall that will be located on the building’s ground floor.

David Latona, president of MEDC, confirmed that the Loan Committee approved the loan request during its scheduled meeting earlier today.

The property’s ownership group, led by Tony Janowiec of Milwaukee-based Interstate Development Partners and Josh Krsnak of Minneapolis-based Hempel Companies, is redeveloping the former mall into a center with a mix of uses, including retail, a food hall, office space and apartments. The 21-tenant food hall would be led by Omar Shaikh, co-owner and president of SURG Restaurant Group LLC.

Development plans for The Avenue were unveiled in December.

According to the MEDC documents, work related to the food hall totals $5.95 million, with $500,000 of that related to the purchase of equipment. The other $5.45 million is related to the buildout of the food hall space, and will be financed from other sources than the MEDC loan. The primary lender on the project is Ladder Capital.

The food hall project is expected to create eight full-time and 40 part-time jobs within the next two years. The MEDC loan rate will be 5.75% with a term of three years.

The Avenue owners have already announced that Milwaukee engineering firm GRAEF-USA Inc. will be the anchor office tenant once the project finishes. Milwaukee Downtown Business Improvement District No. 21 will also move its offices there.

Janowiec did not immediately respond to a request for comment.

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