The $42 million loan from the AFL-CIO Investment Trust and backed by the U.S. Department of Housing and Urban Development for The Moderne, a 30-story building that will be built at the southwest corner of Juneau Avenue and Old World Third Street in the Park East corridor in downtown Milwaukee, was finalized with the signing of closing documents Tuesday.
“It’s done,” said a HUD official. The loan is guaranteed by HUD’s 221(d)4 program.
The project also received a $9.3 million loan from the City of Milwaukee. The closing for that loan is expected to be completed today, said Department of City Development spokesman Jeff Fleming.
“Documents are being finalized. We anticipate closing (this) morning,” he said.
The $55 million building will have 203 apartments, 14 condominiums and first floor retail space.
The general contractor for the project is J.H. Findorff & Son Inc. Construction work for the project is expected to begin sometime after Jan. 1, said Eric Wynn, Findorff senior project manager. The architect is Milwaukee-based Rinka Chung Architecture Inc.
Rick Barrett, the developer for the project, could not be reached for comment.
The approval process for the HUD loan guarantee dragged on for months and was finally approved in August, but the loan did not close until Tuesday. The capital markets for real estate development are extremely tight, so HUD has been swamped by developers seeking financing assistance. As a result, the approval for The Moderne’s loan guarantee was delayed. Previously, Barrett had hoped to break ground in February.
