Wednesday, February 8, 2012
Schlitz Park developers have big future plans
The Brewery Works Inc., the ownership group of Schlitz Park, is working on a $30 million renovation project for the downtown Milwaukee office complex. However, the group has even bigger plans for further development of Schlitz Park.
The group’s boldest vision is a four-story, 160,000-square-foot class A office space addition that would be built on top of the 450,000-square-foot RiverCenter building, the largest building in the complex, located along the Milwaukee River. The Brewery Works extended support columns through the roof of the building, originally a heavy industrial structure, so additional floors could be built on top of the building, said Gary Grunau, developer and co-owner of Schlitz Park.
The RiverCenter building expansion plans give Schlitz Park a way to compete for large tenants that are in the market in the future for class A office space, Grunau said.
“We’re fine-tuning the plan,” he said. “We’ll market it when a large tenant comes down the road. Some day when the time is right we’re going to develop it.”
The riverfront location, combined with expansive views of the rest of downtown Milwaukee, free parking and other amenities at Schlitz Park will make it an attractive space, Grunau predicts.
“It would be spectacular space,” he said. “It’s right on the river. It would be 160,000 square feet of, I think, the best office space in Milwaukee.”
Big future plans are also in the works for the Powerhouse building, recognizable by its two large smoke stacks. The boilers in the building are no longer used as a heat source, but chillers in the building are still used, with river water, as part of the system to cool the Schlitz Park building.
The Brewery Works plans to eventually expand the building and redevelop the unused portion of the building to create 60,000 square feet of office space.
Read more about Schlitz Park in the cover story of the latest edition of the BizTimes Milwaukee magazine, which provides an in depth look at Schlitz Park, the $30 million in improvements that are being done to the office park and the new tenants that are moving there.
On Tuesday, Schlitz Park announced that a “national services and technology provider to the financial services industry” has signed a lease for 18,000 square feet of space in the Bottlehouse A building. Jim Cavanaugh of RFP Commercial brokered the deal for Schlitz Park. The tenant declined to have its name disclosed in the lease announcement said Pam Kassner, spokeswoman for Schlitz Park. The company will move 50 employees to Schlitz Park from a suburban Milwaukee location.
Demolition work begins for downtown Marriott
Major demolition work began Tuesday for the $54 million downtown Milwaukee Marriott hotel project. A crew with Elgin, Ill.-based American Demolition Corp. is doing the demolition work.
The 200-room, nine-story hotel will be built around the Johnson Bank building, located southwest of Wisconsin Avenue and Milwaukee Street.
Five buildings that are more than 100 years old on the site will be demolished, except for the historic Wisconsin Avenue façade and an 80-foot deep section of the buildings behind that façade, which will be preserved and restored.
The project was opposed by some historic preservationists who said the old buildings should have been preserved and that a new hotel building would be out of place on the historic block. However Jackson Street Management, the developer for the project, said the buildings had been altered over the years and lacked historic and architectural significance. The developer also argued that restoring the buildings to build the hotel was not feasible.
Fond du Lac-based C.D. Smith Construction Inc. is the general contractor for the project, with support and assistance from KBS Construction Inc.
The hotel is expected to open in mid-2013.
American Orthodontics to acquire former Thomas Products plant
Sheboygan-based American Orthodontics plans to purchase the 250,000-square-foot former Thomas Products plant at 3524 Washington Ave. on the south side of Sheboygan.
American Orthodontics will consolidate its existing operations, currently located in three buildings totaling 100,000 square feet of space, into the former Thomas Products facility.
“I am thrilled American Orthodontics has the confidence and faith in the citizens of Sheboygan to invest in our community through this major expansion project,” said Mayor Bob Ryan. “We look forward to having them as a prominent employer and local corporate partner for many years to come.”
“We will work cooperatively with American Orthodontics as they transition into their new facilities, and will also help identify prospective tenants or prospective start-up companies seeking space in AO’s existing space along Cambridge Avenue and 18th Street,” said Sheboygan development manager Chad Pelishek. “The growth of one of our major corporate citizens should result in new opportunity for other local businesses.”
Thomas Products closed the facility in 2009 and moved its 280 jobs to Louisiana.
Generac to expand headquarters
Generac Power Systems Inc. announced that it plans to spend $8-10 million to expand its corporate headquarters at S45 W29290 Highway 59 near Waukesha. The project will include $5-6 million to expand and remodel the headquarters and $3-4 million to create a technical center.
The project will convert about 27,500 square feet of manufacturing space into office space and will add about 3,300 square feet for a new main entryway, which will include an area detailing the history of the company and its products. The company said the renovation and remodeling project, “will create a more modern and collaborative workplace and will provide both new office and meeting space to the existing building.”
The project is expected to be completed by the end of 2013. Looking beyond 2013, Generac has already purchased land adjacent to its headquarters in preparation of future expansion.
The facility has been the company’s headquarters since 1967 and has been expanded nine times.
Generac has about 550 employees at its headquarters and will to add another 200 there during the next three years. The company has a total of 2,300 employees.
"The expansion of our headquarters isn't just a major investment in our community, it is a major step in meeting the power generation and equipment demands of our customers," Generac CEO Aaron Jagdfeld said. "We have been growing rapidly over the last decade and this expansion will give us the flexibility and space to not only add to our team, but will create a space to allow the best engineers and technicians in our field to innovate and develop tomorrow's technology for our industry."
Real estate spotlight: Can downtown hotel market absorb huge supply boost?
The latest edition of the BizTimes Milwaukee magazine also includes the real estate spotlight column, which examines how the downtown Milwaukee hotel market will be impacted by the addition of four new hotels, three of which are already under construction. The fourth is a 382-room hotel that will be built next to Potawatomi Bingo Casino.
Buffalo Wild Wings opens at former Foster Pontiac site
A grand opening event was held Monday for a new Buffalo Wild Wings restaurant at 3636 S. 27th St., on the south side of Milwaukee.
The restaurant is part of a development at the former Foster Pontiac site. The former auto dealership building was demolished. The developer for the project, Terraco Inc., has planned a three-building project with a total of 20,800 square feet of space for the 3.4-acre site.
Kohler unveils new Sandhill luxury cabin
Kohler Co. has opened the doors to Sandhill, its newest luxury lodging destination.
The secluded private cabin is nestled on more than 350 acres outside of Kohler, Wis., and is close enough to take advantage of the five-star amenities offered by The American Club Resort, yet remote enough to enjoy the peacefulness and tranquility that only nature can provide, the company said.
Sandhill is a reclaimed timber-framed private cabin with 2,000 square-feet of interior space on three levels. It includes reclaimed wood from six barns throughout Wisconsin and sleeps up to six adults.
Named for the pair of Sandhill Cranes that return each year to the property, the private cabin is a getaway for groups looking to relax with outdoor activities, a private sauna and poker room.
The expansive wrap-around porch provides panoramic views of pine woods, prairie grass fields, a wildlife pond and hiking trails. The private cabin boasts an eye-catching red metal roof.
“Our guests travel from all over the world seeking unique and memorable experiences,” said Christine Loose, resident manager of The American Club Resort and Inn on Woodlake. “Sandhill provides the perfect retreat for families and friends who want to appreciate nature and tranquility, while enjoying the finest amenities.”
Sandhill is open year-round with seasonal activities throughout the year. Prices begin at $785 per person on weekdays with a three-night minimum. Members of River Wildlife, receive a 15 percent discount on lodging at Sandhill.
Leases
Grubb & Ellis|Apex Commercial
- Maysteel leased 45,000 square feet of industrial space at 900 North St., Grafton, from Tecumseh Products Company.
- M&M Motors Inc. leased 7,243 square feet of industrial space at 10921 W. Mitchell St., Milwaukee, from North Shore Bank.
- Executive Consulting leased 3,473 square feet of office space in the West Allis Center at 1126 S. 70th St., West Allis, from 1126 West Allis Operating Associates LP.
- Robert Half International Inc. leased 3,043 square feet of office space at 20935 Swenson Dr., Brookfield, from Liberty Property LLP.
- New Berlin Magic leased 3,000 square feet of industrial space at 2855-75 S. 160th St., New Berlin, from First Industrial Realty Trust.
- Best Care Pediatrics leased 1,925 square feet of space at 4220 S. 27th St., Waukesha, from The 4220 LLC.
- Skyline Technologies leased 1,696 square feet of space at N27 W23957 Paul Road, Pewaukee, from West Wind LLC.
- Guarantee Digital leased 1,332 square feet of space at 514 Wells St., Delafield, from 514 Wells LLC.
Judson & Associates
- Watry Homes LLC leased 5,187 square feet of space at 17790 W. Liberty Lane, New Berlin, from Walter Bohrer Living Trust.
- Casa La Bella Ltd. leased 2,850 square feet of space at 812 Rose Dr., Hartland, from Crossroads Investments LLC.
- The 4220 LLC leased 1,925 square feet of space at 4220 S. 27th St., #200, Milwaukee, from Best Care Pediatrics LLC.
- Wisconsin Tactical LLC leased 1,200 square feet of space at 400 Travis Lane, Unit 34, Waukesha, Waucom Center LLC.
- Hetzel-Sanfilippo Inc. leased 1,125 square feet of space at 1275 Wisconsin Ave., Suite B, Pewaukee, Sawyer Enterprises.
Lakeside Development Company
- Advanced Care moved into a space at 10033 N. Port Washington Road, Mequon.
- Midland Management moved into a space at 10345 N. Port Washington Road, Mequon.
Mid-America Real Estate
- GameStop leased 3,027 square feet of space at the Shoppes at Prairie Ridge in Pleasant Prairie.
- Weight Watchers leased 2,000 square feet of space at The Brownstones, 17550 W. Bluemound
NAI MLG Commercial
- Rock Solid Snow and Turf LLC leased 7,920 square feet of space at W118 N11927 Maple Road, Germantown, from Alpine Business Center LLC.
Siegel-Gallagher
- Monkey Business Party and Gifts Inc. leased 4,000 square feet of retail space in Sendik’s Towne Centre at 19045 W. Capitol Dr., Brookfield.
Sales
Grubb & Ellis|Apex Commercial
- Capitol Plaza LLC purchased a 13,200-square-foot retail building at 6500-24 W. Capitol Dr., Milwaukee, from the FDIC, as receiver for Legacy Bank.
- Rock LLC purchased an 11,200-square-foot industrial building at 4924-40 N. 125th St., Butler, from Inland Development Ltd. LLP.
Inland Companies
- Dave Tomter, the owner of the Butler Inn, recently purchased the Former Pepino’s restaurant located at 17065 W. Capitol Dr. in Brookfield. The 6,086 square foot restaurant sold for a purchase price of $600,000.
Judson & Associates
- Rock LLC purchased an 11,200-sqaure-foot building at 4924-40 N. 125th St., Butler, from Inland Development Ltd. LLP.
Mid-America Real Estate
- N3 Real Estate purchased a 3,138-square-foot building on a 0.44-acre site at 3910 75th St., Kenosha.
New construction
Milwaukee-based Inland Construction Inc. was recently awarded the 2,700-square-foot tenant improvement project for Divorce Financial Solutions in Warehouse No. 1 located at 126 N. Jefferson St., Milwaukee. Inland Construction has recently completed: two projects for SSG Properties at the Blatz Wash House located at 1101 N. Market St. in Milwaukee, the 14,000-square-foot renovation/remodel project of the parking garage and the 7,500-square-foot tenant improvement project of the Milwaukee Symphony Orchestra; a 16,000-square-foot tenant improvement project for Forrer Business Interiors at 555 Estabrook Blvd., Glendale; a 5,000-square-foot tenant improvement project for Zurich at 20935 Swenson Dr., Brookfield; a 3,160-square-foot tenant improvement project for K-Force located at 135 S. 84th St., Milwaukee.
Brookfield-based Briohn Building Corp. was contracted to do design/build renovation work in the North Building at the HUSCO International Inc. world headquarters at 2239 Pewaukee Road, Waukesha. Briohn recently completed design and construction work on a manufacturing facility renovation for Ludman Machine Company LLC at 4810 N. 124th St., Milwaukee, and design and window replacement work at Materion Corp., 407 N. 13th St., Milwaukee.
Wauwatosa-based Selzer-Ornst Company recently completed a strip mall project for Cobalt Partners LLC at the corner of Mequon and Port Washington roads in Mequon, and an office suite project for Public Allies at 735 N. Water St. in downtown Milwaukee.
Real estate people
Wauwatosa-based AG Architecture recently promoted William Boehler, Ann D’Acquisto, Russ McLaughlin and David Trinkner to the AG leadership team as senior associates. Boehler has nearly 30 years of architectural experience and has been with AG for 19 years. D’Acquisto has 25 years of architectural experience and has been with AG for 15 years. McLaughlin has a 27-year career in architecture, including more than 20 years of experience in senior living work. Trinkner has more than 20 years of experience, including 9 with AG.
Read estate odds and ends
Multi-family development planned in Grafton
MSP Development Company Inc. plans to build a 192-unit, multi-family residential development on a 9.5-acre site south of the Pick ‘n Save store in Grafton, and north of Oak Street. The plans call for three buildings with 72 apartments, a 29-unit, 31-unit and 12-unit building. MSP is applying for tax credits for the project through the Wisconsin Housing and Economic Development Authority (WHEDA) Section 42 program for 60 of the 72 apartment units. Those units would be offered at lower rents to residents that meet the program’s income limit requirement. The apartments in the 12-unit building would be offered at market rates. In addition, the project would include a three-wing, 120-unit senior living campus with a 36-unit memory care wing, a 36-unit assisted living wing and a 48-unit independent living wing.
Goodwill plans Grafton store
Goodwill Industries plans to open a Goodwill Store and Donation Center in the former Sears store at 1715 Wisconsin Ave. in Grafton. Goodwill plans to lease and occupy the entire 21,400-square-foot building. The store will have 40 to 50 full and part-time employees. The store is expected to open in June.
Senior apartment complex planned in Pleasant Prairie
Kenosha-based Bear Realty plans to build a two-building, 46-unit “affordable” senior apartment complex at the corner of 91st Street and 22nd Avenue in Pleasant Prairie. The apartments will consist of 28 one-bedroom and 18 two-bedroom units. About 2.1 acres of the 3.2-acre site will remain as open space. The Pleasant Prairie Plan Commission and Village Board recently approved conceptual plans for the project.
In 2007 Bear Realty planned to build a condominium development on the site, but those plans were changed after the Great Recession devastated the housing, and especially the condominium, market.
Inlanta Mortgage adds Racine branch
Jack LeRose recently merged his company, SE WI Mortgage Group with Brookfield-based Inlanta Mortgage. LeRose has more than 20 years of experience in the mortgage industry. “I have always had the reputation of being able to best my competition with lower rates and great customer service. Partnering with Inlanta Mortgage has made me even more competitive,” LeRose said. “Their state of the art customer service and product knowledge is second to none and I am happy that in this tough environment I can still be one step above the competition.” “Inlanta Mortgage’s comprehensive support platform allows mortgage loan officers to focus on providing superior customer service,” said Inlanta executive vice president Nicholas DelTorto. “We feel this is integral to our company’s growth and valuable to our sales teams.”
Sobczak brokers Mandel Group's Shorewood deal
Deborah Sobczak, principal of Eastmore Real Estate LLC, provided the brokerage services for Mandel Group Inc.’s LightHorse | 4041 development in Shorewood. The project, located on Oakland Avenue, will include 84 apartments and an 18,000-square-foot Walgreens store. Construction is expected to begin this month. RE Enterprises LLC is the co-developer on the project with Mandel Group. The project was designed by Engberg Anderson Design Partnership and will be built by VJS Construction Services Inc.
Auto parts store planned in Sheboygan
O’Reilly Automotive Store Inc. plans to build a new O’Reilly Auto Parts store at the southeast corner of Calumet Drive (Highway 42) and North 25th Street in Sheboygan.
Real estate events
NAIOP Developing Leaders Lunch with a Leader featuring Fran Brzezinski of Interstate Partners. Thursday, Feb. 14, from 12 noon-1:30 pm at The Wisconsin Club, 900 W. Wisconsin Ave., Milwaukee. Members only cost of $25. Registration is required at www.naiop-wi.org.
WCREW Real Estate Professionals Networking Event, Wednesday, Feb. 22, 5:30-7:30 p.m., Mader’s restaurant, 1041 N. Old World Third St., Milwaukee. For more information call Heather Nelson at (262) 754-5569 or visit www.wcrew.org.
NAIOP Developing Leader Wits and Wagers, Feb. 23, 2012 at Karma, 600 E. Ogden St. from 5-6:30 pm. Registration is required at www.naiop-wi.org.
Commercial Real Estate and Realtor Government Day, Feb. 29, from 9 a.m.- 3 p.m. at Monona Terrace in Madison. Members of BOMA, CARW, IREM, ICSC, SIOR, CCIM, NAIOP and WCREW will meet with legislators to discuss issues important to the commercial real estate industry. Registration is required at www.iremwi.org.
Hunzinger Green Building Conference, Thursday, May 10, 12 noon to 5 p.m., 21100 Enterprise Ave., Brookfield.
BizTimes Real Estate Weekly is compiled by BizTimes Milwaukee managing editor Andrew Weiland. This bulletin is published every Wednesday morning. Send real estate news tips to Andrew.Weiland@biztimes.com or call him at (414) 277-8181, ext. 120.



