Milwaukee Radio Alliance LLC plans to move the studios and business offices for 102.1 FM WLUM, an alternative rock station, and for 93.3 FM WJZI, a jazz station, from 2979 N. Mayfair Road in Wauwatosa to an 8,000-square-foot space at 100 Heritage Reserve, Menomonee Falls.

The two radio stations will occupy space formerly used by Strong Capital Management as a maintenance facility. The building is owned by Strong Corneliuson Capital Management and Heritage Brothers LLC. “We expect to be there by the first week of May,” said Bill Hurwitz, vice president and general manager of Milwaukee Radio Alliance LLC. About 75 people will work in the building, he said. Milwaukee Radio Alliance will spend “a lot” to upgrade the building and install the radio broadcast studios, Hurwitz said, but he declined to say how much.

The radio stations are leaving Wauwatosa because AP Properties LLC and Pewaukee-based VJS Development Group plan to combine the properties at 2979 and 3005 N. Mayfair Road to create a 2.5-acre site where they plan to build a three-story, 17,700-square-foot medical office building. The 8,800-square-foot building currently used by the two stations will be demolished as part of that project.

Milwaukee Radio Alliance also owns AM 1290 WMCS, a news talk station targeted to Milwaukee’s African American community. WMCS will remain at 4222 W. Capitol Drive, Milwaukee, Hurwitz said.

Boston-based Colliers International’s third quarter report indicates what many Milwaukee office space brokers have been reporting anecdotally: the downtown Milwaukee office market is soft. According to the Colliers International report, the downtown office vacancy rate increased from 11.8 percent in the second quarter to 18.4 percent in the third quarter.

The move of Blue Cross Blue Shield’s offices from downtown Milwaukee to Summit Place in West Allis, may have contributed to the large drop in downtown’s office vacancy rate in the report.

For class A downtown office space, the vacancy rate increased from 10.6 percent in the second quarter to 12.9 percent in the third quarter, according to the Colliers report.

The region’s office space as a whole fared better, with the vacancy rate dipping a bit from 11.4 percent in the second quarter, to 10.6 percent in the third quarter, according to the report.

The Milwaukee region’s total office space vacancy was lower than the national average, and the downtown class A vacancy rate was only slightly higher than the national average. The nation’s office vacancy rate was 13.3 percent in the third quarter, and the nation’s downtown class A office space vacancy rate was 11.2 percent, according to the report.

For industrial space, the Milwaukee area had a 7.6 percent vacancy rate in the third quarter, up a tad from the 7.5 percent vacancy rate in the second quarter, according to the report. The national industrial space vacancy rate was 8.24 percent in the third quarter, according to the report.

“Milwaukee is still holding its own with regard to vacancy and lease rates,” said James T. Barry III, president and chief executive officer of Colliers Barry, the Milwaukee affiliate of Colliers International. “We believe that the Milwaukee market will continue to improve steadily relative to other markets due to the fact that we have very little oversupply and very little speculative product in either industrial or office real estate markets. In addition, as land and construction costs continue to rise, lease rates and sale prices will strengthen, while vacancy rates should stay in check. In sum, we have relatively healthy industrial and office real estate markets in southeastern Wisconsin that should see steady improvement.”

It appears that Marcus Hotels and Resorts, a division of Milwaukee-based The Marcus Corp., will miss out on an opportunity to operate a flagship convention hotel in downtown Indianapolis.

A committee appointed by Indianapolis Mayor Bart Peterson recently selected a competing convention center hotel proposal instead. The committee chose a proposal by an investors group that includes Merrillville, Ind.-based Whiteco Industries to build a J.W. Marriott Hotel, a Fairfield Inn, a SpringHill Suites and a Renaissance Hotel. All of those are brands of Washington, D.C.-based Marriott International Inc. The four hotels will have more than 1,000 rooms. The tallest hotel, the J.W. Marriott, will be 25 to 30 stories tall.

The committee selected that proposal over a 44-story, 1,016-room InterContinental Hotel that would have been developed by a group led by Michael Browning, who is the chairman of the board and president of Indianapolis-based Browning Investments Inc., and operated by Marcus.

The hotel that would have been operated by Marcus featured a taller and more dramatic design than the J.W. Marriott proposal. Because of that, the committee selection has generated criticism from some residents and the editorial board of the Indianapolis Star. However, Peterson is expected to rubber stamp the committee’s recommendation, and the city is asking Whiteco to improve the architectural design for its project.

Indianapolis plans to provide a significant subsidy for the hotel development. The exact amount is yet to be determined but, according to published reports, the developers have indicated they may need $40 million to assist the project.

The convention center hotel project is in the works as Indianapolis is planning a $275 million expansion of its convention center that would add 254,000 square feet of exhibition space, bringing its total size to 564,000 square feet. The city is also building a new retractable dome football stadium for the Indianapolis Colts, which will be part of the convention center complex.

Meanwhile in Milwaukee, officials are trying to decide if the Midwest Airlines Center should be expanded, and how it would be paid for. It would cost about $100 million to $150 million to add 150,000 to 200,000 square feet of meeting space to the current 189,000-square-foot convention center, said Franklyn Gimbel, chairman of the Wisconsin Center District.

Company: CB Richard Ellis
Title: Senior vice president
Family: “A very sweet daughter, a beautiful woman I love and a teenage son about to drive.”
City of residence: Cedarburg 
Hobbies: “Host of a three-hour radio show called 'Rock & Roll Roots' on Sunday mornings from 9 a.m. to noon on WKLH FM 96.5. Between that, work, the aforementioned family and the Packers/Brewers/Bucks  ... that pretty much leaves only eating and sleeping.”
What are you working on? “As you read this, I am working on my tan (my annual holiday vacation). I am also working on the office portion of the IREM forecast for Jan. 18, so please don't ask me to reveal how the market looks to me.”
How does the market look to you? “On one hand, I am really concerned that southeast Wisconsin lacks an influx of companies coming into our area. And many of the bread and butter lease expirations that resulted in consistent activity and modest movement/upgrades are no longer around. But on the other hand, the Park East corridor is set to explode, there are big companies still doing big things and there are a myriad of exciting proposed projects, a lot of which are so good that you have to believe a few will undoubtedly come to fruition.”
What was the best deal you’ve ever been involved in? “To me, the best deals are when you intricately feel part of the company you are working with. I was proud to be involved in almost every aspect of GE Healthcare's 500,000-square-foot building at the Research Park (in Wauwatosa), and I was also happy to be a part of the positive impact of the Manpower Inc. headquarters transaction (moving to downtown Milwaukee). It is also very gratifying to be working with great people at Cramer-Krasselt on another project that will positively impact our community. Although every deal is important, as a diehard sports fan, how can I not say the coolest deal was working on the office for The Commissioner of Major League Baseball?”
What was the funniest moment of your career? “There have been a lot of them in 20 years, but here goes: I was working on a top-secret potential real estate project for an unnamed local major company (one with a very recognizable logo). We needed to clandestinely tour a building that was still occupied. I concocted a story that kept their identity under wraps. On the rainy day of the final tour, I picked up about a half dozen executives from that firm in an undistinguished rental van. We pulled up to the building and all of the executives opened their umbrellas revealing the company's logo on each one. They looked about as anonymous as Paris Hilton at an Amish barn raising. Weeks of work to hide their identity went down the drain. All we could do was laugh about it.”

Grand Rapids, Mich.-based Gordon Food Service recently purchased 3.15 acres of vacant land at the southwest corner of 76th Street and 69th Avenue in Pleasant Prairie from Milwaukee-based Heartland Development Group Ltd. Peter Glaser of CB Richard Ellis represented Heartland Development Group and Tom Metzger represented Gordon Food Service in brokering the deal. Gordon Food Service is a foodservice distributor, providing food and supplies for restaurants in the U.S. and Canada. The company plans to build an 11,000-square-foot grocery store at the Pleasant Prairie site. The property is near Highway 50 and Green Bay Road, both major commercial corridors in Kenosha County.

Pewaukee-based Judson & Associates recently hired Lori Hake and Mark Gorski as commercial real estate brokers. Hake previously worked for Milwaukee-based Wangard Partners Inc. for two years. She is currently working on leasing the Sky Plaza buildings located at 2110 and 2120 Pewaukee Road in Waukesha. These two buildings have a total of 40,000 square feet available for lease that can be divided down to 4,320 square foot units. Gorski is a recent graduate of UW-Whitewater. He has been involved in numerous industrial lease transactions and is currently marketing a restaurant and retail opportunity in Delafield.

Janesville-based J.P. Cullen & Sons, promoted Jeff Benson to warranty coordinator at the company’s Brookfield office. He most recently served as superintendent.

Oconomowoc-based MSI General Corp. recently hired Amy McNally as an architectural intern in the design department and Rebecca Sadler as a receptionist in the administrative office. The company promoted Kelly Frank to administrative manager.

West Allis-based HomeSale Realty recently hired Tami Dalcolma as a real estate sales agent in its Waukesha office.

Brookfield-based Shorewest Realtors recently hired Robert Diamond in the New Berlin office and Blanca Quiles in the South Metro office.

The Milwaukee Chapter of the National Association of the Remodeling Industry (NARI) recently announced the election of officers and directors for 2007. Scott Cline, of Milwaukee-based J & B Construction Inc., was named president. Michael Heuser of Wauwatosa-based Kelmann Corp.; Thomas Weiher of Menomonee Falls-based Carmel Builders Inc. and Diane Ausavich of Milwaukee-based Carl Krueger Construction Inc., will serve as vice presidents. Tony Rink of Brookfield-based Renovators Ltd. will serve as secretary and Kevin Anundson of Muskego-based The OAR Group, will serve as treasurer. The members of the 2007 Milwaukee NARI board of directors are: Dave Amoroso of Milwaukee-based Ron Sonntag Public Relations, Mark Brick of Glendale-based B & E General Contractors Inc., Kenneth Steven Conner of Colgate-based K. Steven Remodeling Inc., Mary Kay Fagan of New Berlin-based Rundle-Spence Manufacturing Co., Thomas J. Hagner of Racine-based Better Building by Weather-Seal Ltd., Dean Herriges of Mukwonago-based Urban Herriges & Sons Inc., Thomas Kammerait of Milwaukee-based von Briesen & Roper, Nick Kerzner of Oconomowoc-based Kerzner Remodeling & Construction, James Klappa of Greenfield-based JDJ Builders, Paul Kraemer of Greenfield-based Starr Insurance Group, Pamela Mackovich of Brookfield-based Weather-Tek Design Center Inc., David Pekel of Wauwatosa-based Pekel Construction & Remodeling Inc., Howard Rowell of Wauwatosa-based Royal Chimney Service, Gary Sannes of Wauwaotsa-based S.J. Janis Company Inc., Kenneth Skowronski of Franklin-based KS Remodelers Inc. and Ron Ziglinski of Wauwatosa-based Around Your House.

The Milwaukee Chapter of the National Association of the Remodeling Industry (NARI) recently announced the winners of its annual president’s awards. The winners are: Ron Ziglinski of Milwaukee-based Around Your House, Mike Heuser of Wauwatosa-based Kelmann Corp. Inc., Kevin Anundson of Brookfield-based The OAR Group Inc., Howard Rowell of Wauwatosa-based Royal Chimney Service, Dave Amoroso of Milwaukee-based Ron Sonntag Public Relations Inc. and Milwaukee NARI executive director David Feldner.

Metropolitan Builders Association annual Home Builders Expo, 4-8 p.m. Thursday, Jan. 4; 12-9 p.m., Friday, Jan. 5; 10 a.m.-9 p.m., Sat. Jan. 6 and 10 a.m. to 5 p.m., Sunday, Jan. 7; Midwest Airlines Center, 400 W. Wisconsin Ave.

SIOR Wisconsin Chapter annual awards, installation of officers and scholarship banquet, 5:30-7:30 p.m., Wednesday, Jan. 17; University of Wisconsin-Milwaukee downtown conference center, 161 W. Wisconsin Ave. (262-938-4464).

IREM forecast breakfast, 7-9:30 a.m., Thursday, Jan. 18, Italian Community Center, 631 E. Chicago, St., Milwaukee, (476-4736).

• SBT real estate archive
• CRE spotlight (Dec. 15)

• Building Owners and Managers Association
• Certified Commercial Investment Members
• Commercial Association of Realtors Wisconsin
• CoStar Group
• Emporis Buildings
• Institute of Real Estate Management
• International Council of Shopping Centers
• LoopNet
• Menomonee Valley Partners
• Milwaukee Department of City Development
• Milwaukee property info
• National Association of Industrial and Office Properties
• Society of Industrial and Office Realtors
• Waukesha County property info
• Xceligent

BizTimes Real Estate Weekly is compiled by Small Business Times 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.