Bob Schultz, the developer who has proposed the mixed-use Rivianna project along the Milwaukee River just south of the Historic Third Ward, said he feels like the "Rodney Dangerfield of developers in Milwaukee." Schultz believes he ought to get a little more respect for proposing a $100 million development, which would feature three towers, each 16 stories high, with a total of 165 condominiums and a 60-room boutique hotel. The project was recently recommended for approval by the Common Council's Zoning, Neighborhoods and Development Committee, despite objections from some residents in the neighborhood. The Common Council will review the proposed re-zoning for the project during its meeting today.

During the committee meeting, Ald. Robert Bauman, whose district includes the Marine Terminal Lofts residents but not the Rivianna site, said he was told by a Department of City Development official that the Rivianna project probably would not obtain financing. Schultz is not seeking financial assistance from the city for the project. Later, Bauman told SBT that the comment about the financing for Rivianna was made by Richard "Rocky" Marcoux, commissioner of the DCD. DCD spokeswoman Andrea Rowe Richards said the department declined to comment for this story.

"It's destructive," Schultz said of the comments questioning his project's financing. "For some reason, the opposition to (the project) has risen to a new height of sophistication, and it's not based on logic." Schultz said he made several design changes to the building to appease concerns of area residents that oppose the project. Plans for a helipad and a fountain were dropped because of noise concerns. The base that the three towers will sit on was lowered to allow more sunlight to pass through. The number of condominiums and the size of the hotel was reduced.

The three-tower design for the building will allow more sunlight and will block views less than a shorter, block-shaped nine-story building would have, Schultz said. Despite the changes, several neighborhood residents still expressed opposition to the project. "It seems they were focused on one thing, defeating this project," Schultz said. Bauman said he considers the committee's endorsement of the Rivianna project, "a horrible mistake."

"I think there is a serious issue with the height," Bauman said. A high-rise building on the site does not fit in well with the shorter buildings on the other side of the river, he said. "The constituency of the height of the buildings on that end of the river, I think it works," Bauman said. "I think the density for that site has to be thought about long and hard." The city should establish a vision for future development along the south side of the river between Lake Michigan and Water Street, Bauman said.

However, several others have expressed support for the development, including some business owners in the neighborhood. As for the financing of the project, Schultz said he received a verbal commitment from one lender, whom he declined to name, that would finance the entire project without any condominium pre-sales. Schultz said that deal has not been finalized and he is talking to other potential lenders as well. "I have met with multiple sources on the equity and debt side that have expressed a general, solid interest in the project," he said.

Schultz plans to provide some community benefits with the project, which would include affordable housing units, union labor and minority workers. The community benefits have helped attract interest from some lenders, he said. "There are capital markets out there that want to invest in projects that show a high degree of social responsibility," he said. However, Schultz's plans for a dramatic development, without subsidy and with community benefits, make critics skeptical that it can work.

"I frankly think that this development was put forth as a joke," Bauman said. "A helipad, waterfalls - you can't do everything they claim they are doing - parking, a riverwalk, community benefits, no subsidy. It is not possible. The numbers just don't add up. There is not a single reputable developer in this city that has spoken up for this project. I think the DCD has done the community a disservice for even bringing this project forward. It is a horrible mistake." Schultz was a co-developer in the redevelopment of the former Teweles Seed Co. building at 222 S. Third St., Milwaukee, into housing and is a co-developer in the 80-unit River Renaissance condominium development that is under construction at Water and Erie streets in the Third Ward.

The Teweles project presented major financial challenges, Schultz said. Overcoming those challenges earned the respect of the capital markets, he says. "The capital markets respect people that respect other people's money," Schultz said. "I'm much further ahead with financing than I was with Teweles or River Renaissance. I had a very difficult time with Teweles. It would have been very easy to just fold up and go home. But I weathered that storm to get River Renaissance going." With a strong show of support from businesses in the neighborhood, Schultz said he is determined to make the Rivianna project a success. "I feel a sense of responsibility," he said. "Now, I have to deliver." To learn more about Rivianna go to: www.rivianna.com

Zilber Ltd. founder Joseph Zilber's plans for redeveloping the Pabst brewery include a 185,000-square-foot International Trade Center, which would occupy a 30-year-old warehouse building on the brewery property at 824 W. Juneau Ave. The Milwaukee International Trade Center would be the home to as many as 100 businesses from throughout China that are interested in selling their products directly to buyers for distribution throughout the United States. Learn more about the Milwaukee International Trade Center at: http://www.mkeitc.com

Company: CB Richard Ellis
Title: Managing director, state of Wisconsin
Education: University of Missouri
Family: Married to Cindy for 22 years; children Ariana (20), Elan (18), Sasha (15)
City of residence: Fox Point
Hobbies and interests: Working out, golf, reading
What are you working on? "Looking for challenges. Enjoy working with local businesses."
How does the market look to you? "This is an exciting time with a lot of action in the commercial real estate market. Certain local retailers are discovering interesting opportunities. However, there is still a need to be cautious."
What was the best deal you've ever been involved in? "It’s a tie between (1) the redevelopment of Capitol Court in Midtown, the urban redevelopment that changed a neighborhood and (2) several years ago, convincing a local landlord to accept a 1,000-square-foot local retailer as a tenant. I felt good about it, and it turned out to be a good fit for all."
What was the funniest moment of your career? "Watching the face of the passenger in my car, as I followed Gary Stein to a meeting from the original Brat House to the other side of the Capitol via State Street, in Madison, which is closed to cars. It's been 20 years but still feels like yesterday."

A partnership formed by Richard Ruvin and Fiduciary Real Estate Development Inc. recently purchased the 114-unit The Franklin at East Pointe luxury apartment complex at 1110 and 1212 E. Ogden Ave., Milwaukee, from Milwaukee-based Mandel Group Inc. Ruvin and Fiduciary have also worked together to convert the Blatz Apartments in downtown Milwaukee into condominiums, and also plans to convert The Franklin to condos. "We're renovating the building as we speak," Ruvin said. "We will be marketing to the existing residents for the next few weeks and we will be marketing to the general public in about a month. We see this project as being somewhat similar to the Blatz. It is at a great location with terrific amenities. And 80 percent of the units will be priced below $250,000, which is where most new downtown condo developments start at." The sale price for the two-building property was not disclosed by Ruvin and Mandel. The Franklin was completed in 1999 as part of Mandel Group's nine-block East Pointe redevelopment of the former Park East freeway corridor. This is not the only property that Mandel has sold lately. In January the company sold Lake Bluff at East Pointe, a 110-unit apartment complex which is now being converted to condos. Mandel Group also recently sold its Georgetown Square development in Brookfield to Hales Corners-based Wimmer Brothers. "We are currently at a time in the real estate cycle and economic environment when, due to historically low interest rates and low capitalization rates, both sales and refinancing are extremely attractive," said Barry R. Mandel, president of Mandel Group. "We evaluated our entire portfolio recently and completed a number of refinancings as well as deciding to sell The Franklin." At the same time, Mandel Group is completing the development of University Club Tower in downtown Milwaukee and Marine Terminal Lofts in the Third Ward, which have a combined value of $150 million, and just started work on the $175 million North End development, near the Park East corridor in downtown Milwaukee. In April, the company completed a $70 million acquisition of three suburban apartment communities which were originally developed by Mandel, adding 686 apartments to the company's ownership and management portfolio. 

Baltimore-based Tower Realty Investments recently purchased Badger Plaza, a 157,150-square-foot retail center at the corner of Durand Avenue and Kentucky Street in Racine. The shopping center's tenants include a Piggly Wiggly grocery store, a Big Lots store and a Blockbuster video store. "Badger Plaza is an excellent example of what we want to buy," said Tower Realty owner Nate Tower. "The center is well located, has a strong performing grocery anchor with good lease term remaining, and the upside potential of vacant space in a solid market." Broad Reach Retail Partners LLC is now handling leasing and management of Badger Plaza.

Gregory A. Kost was recently named the leader of Plymouth, Minn.-based TOLD Development Company's Milwaukee area office, which is in Waukesha. In his expanded capacity, Kost will be responsible for overseeing all operational functions and new business development for the Milwaukee area office. 

The Brookfield office of Minneapolis-based M. A. Mortenson, Minneapolis, recently hired Angie Helfert and Chad Pape as field engineers.

Gestra Engineering Inc. will received a $75,000 brownfield grant from the state of Wisconsin to help redevelop a building at 1620-34 W. Fond du Lac Ave. in the central city of Milwaukee for its new headquarters. Gestra Engineering Inc. is relocating its offices from Oak Creek to Milwaukee. The redevelopment requires the removal of contaminated soil. The project will create eight jobs. Total project cost is $345,000.

Lizco Super 8 Inc. recently purchased the 56-room Super 8 motel at 108 W. Mohawk Dr. in Tomahawk. The transaction was handled through Oconomowoc-based Milmark Hotel/Motel Investments LLC and brokers Ronald McCord and Jennifer Church. Milmark is a real estate firm specializing in the sale, financing and evaluation of hotel/motel properties.

Pabst Farms Fourth Annual Golf Outing, Monday, July 16, 10:30 a.m., Chenequa
Country Club, Hartland. For more information call Jamie Panton at (262) 951-4545.

TIF Practice and Policy Seminar, Tuesday, July 24, 8 a.m. to 4:30 p.m., Monaghan Memorial Ballroom in the Alumni Memorial Union, 1442 W. Wisconsin Ave., Milwaukee, on the Marquette University campus. For more information call Jonathan Tucker at (414) 273-1815.

Second Annual Society of Office and Industrial Realtors (SIOR) Scholarship Golf Outing, Monday, July 30, 11:30 a.m., Blackwolf Run, 1111 W. Riverside Dr., Kohler. For more information call Bob Dufek at (414) 278-6814.

Commercial Association of Realtors Wisconsin (CARW) Golf Outing, Monday, Aug. 20,  North Shore Country Club, 3100 W. Country Club Dr., Mequon. For more information call (414) 271-2021.
 

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