Real Estate Weekly

Wednesday, August 1, 2007

NARI members say sales up during first half of year

More than half of the members of Milwaukee/NARI (National Association of the Remodeling Industry) Home Improvement Council Inc. say their companies had an increase in sales during the first half of 2007. ,"After a bit of a slowdown in 2006, we are pleased the majority of association members have experienced growth in the first half of 2007," said Scott Cline, president of Milwaukee/NARI Home Improvement Council. "As the inventory of existing houses continues to age, home renovation continues to be a popular choice for area consumers."

Eighty-two Milwaukee-area members responded to NARI's semi-annual Industry Activity Questionnarie. In the first half of 2007, nearly 54 percent of those responding said business was up this year, while 11 percent said it was flat. Of the respondents that reported an increase in sales, almost 66 percent said sales were up at least 10 percent when compared with the first half of 2006. Over the past 12 months, 59 percent of the respondents said there was an increase in the average project cost completed for homeowners, while 29 percent said the project cost remained the same.

Lower level/basement remodels, as well as home additions and outdoor living areas, continue to be popular, as consumers desire more living and entertainment space, according to survey respondents. Contractors responding to the survey indicate that homeowners are adding bathrooms and bedrooms to homes. Homeowners are seeking more complete systems, especially as they relate to HVAC and audio/video. The use of environmentally friendly "green" remodeling products is gaining in popularity, according to survey respondents.

Homeowners are seeking ease of maintenance relating to a home's exterior, focusing on energy efficient windows, maintenance-free siding and roofing, and covers for gutters to prevent clogging, according to the survey respondents. Contractors continue to generate most of their business from referrals (59 percent) and previous customers (41 percent), with increased marketing (40 percent) being used by contractors to reach consumers, according to the survey respondents.

Zilber tears down Pabst smoke stack

Construction crews recently demolished the iconic Pabst smoke stack at the former Pabst brewery in downtown Milwaukee. Attempts to save the smoke stack and the building that it sat on were unsuccessful, said Mike Mervis, assistant to Joseph Zilber, the founder of Zilber Ltd. who is redeveloping the former brewery property. The building and the smoke stack were in bad condition, Mervis said. The building, constructed in 1948, lacks architectural significance, and there was no practical way to reuse it, Mervis said. "The building was structurally challenged, at best," he said. Therefore, the only way to save the smoke stack would have been to try to lift it off the building, but then it may have fallen apart, Mervis said. The building was used as an incinerator and didn't have any floors in it, Mervis said. "It's just a big open cavernous structure with a huge boiler and coal bins," said Jim Haertel, an expert on the Pabst brewery site who plans to redevelop a small portion of it. "Each time (a building in the brewery complex) goes down it hurts a little bit. I feel I failed to come up with a use to save it."


The tiles used for the P-A-B-S-T letters on the smoke stack are being saved for reuse, Mervis said. A major advantage of tearing down the building that the smoke stack sat on is that the west side of two historic buildings on the brewery property will be exposed for the first time in almost 60 years. Those buildings feature attractive windows and, with the incinerator building gone, natural light will shine through those windows, making the space more attractive. "These are spectacular two-story windows," Mervis said. "We would have liked to save (the smoke stack). But these are the types of horse trades you get with historic preservation."

Conceptual plans for Zilber's Pabst redevelopment had included a hotel at the site of the smoke stack building. Now it appears some of the site will remain vacant and the rest will be developed for another use. A hotel could still be built in the brewery complex, but likely at a different site, Mervis said. In addition, Zilber plans to restore the rotating sign on top of the grain elevators, Mervis said.

Real estate profile: Mark Smith

Company: Judson & Associates S.C.
Title: broker
Education: "B.S. in business administration, Marquette University, 1976 (Go Warriors)."
Family: Daughters, Carly, 21, a senior at UW-Stevens Point; Caitlin, 19, a sophomore at UWM. Engaged to Carla Brieman, a dental hygienist in Hartland.
City of Residence: Oconomowoc
Hobbies and Interests: "I enjoy cooking, especially cuisines of different cultures. Traveling. This past spring, we traveled to London, Amsterdam and France. Beaune, France which is in the heart of the Burgundy wine region was especially interesting and scenic. Learning about new things and ideas has always interested me."
What are you working on? "I'm working on a couple of mid-sized office and industrial buildings for sale. Recently, I leased up about 46,000 square feet of flex space for a client of ours in Pewaukee."
How does the market look to you? "The market has been very active. I have more clients that are looking for buildings than there are buildings on the market. Most of the businesses that I am working with are looking for larger facilities to capitalize on their expanding markets."
What was the best deal you've ever been involved in? "The best deal that I've ever been involved with happened this past June. I obtained a 46,000-square-foot industrial listing from The Journal Communications Printing Group in Hartland and sold it to Rapco Fleet Support, which was located just across the street. That's called a 'home run' in our business."
What was the funniest moment of your career? "My funniest moment happened early in my career while I was out promoting a listing of mine in Burlington. When I was at ABC Supply, they told me that they were looking for a new building and then at my next call to Cooperative Plus Inc., which was next door, I asked if they would consider selling one of their underutilized grain storage buildings. It took about 1 1/2 years and a lot of negotiating, but I learned a very valuable lesson: neighbors buy neighbors."

Real estate deals of the week

Best Buy plans to open a store in Kenosha. Best Buy Stores recently leased 30,000 square feet of retail space at I-94 and Highway 50 in Kenosha from GM Investors LLC. Dan Cohen of Mid-America Real Estate-Wisconsin represented Best Buy in brokering the deal and Dan Rosenfeld and Mike Fitzgerald of Mid-American Real represented GM Investors. Richfield, Minn.-based Best Buy Co. Inc. has about 1,170 electronics stores in the U.S. and Canada. This will be the first store in Kenosha County. Best Buy is just the latest national chain retailer to flock to Kenosha County, as urban sprawl from Chicago is resulting in new residents moving into the county. The population increase is attracting more retailers like Best Buy to Kenosha.

Arandell Corp. recently leased 40,000 square feet of industrial space at N90 W14700 Commerce Dr. in Menomonee Falls from SBM of Wisconsin LLC. Trent Poole of CB Richard Ellis represented Arandell and Barry Chavin and Ryan Persitza of MLG Commercial represented SBM in brokering the deal. Menomonee Falls-based Arandell prints and distributes catalogs. The Commerce Drive space will be used to store catalog pages that have not been bound yet, said Jim Treis, executive vice president of sales and marketing for the company. This is the busy time of the year for Arandell, and during the busy times the company typically leases storage space on a temporary basis, Treis said. The company plans to lease this space for about six months, he said.

Real estate people in the news

Brookfield-based Briohn Design Group LLC recently hired Adam Anderson as an architectural designer.
Brookfield-based Shorewest Realtors recently hired Terry Lesperance as a sales associate in the company's Brookfield/Waukesha office at 2212 E. Moreland Blvd., Waukesha.
Waukesha-based Wangard Advisors LLC recently hired Sarah Peterson as a marketing coordinator.
Hartland-based PDC Midwest Inc. recently hired Erin Kobriger as an architectural intern/interior designer.

Real estate events

Menomonee Valley Real Estate Open House, Wednesday, Aug. 8, 11:30 a.m.-1:30 p.m., Canal Street, under the 35th Street Viaduct. To RSVP, and for more information, call Corey Zetts at (414) 274-4655.

Associated General Contractors of Greater Milwaukee Golf Outing, Monday, Aug. 13, 11:30 a.m., Mequon Country Club, 12400 N. Ville Du Parc Dr., Mequon; $220 for members. For more information, call (414) 778-4100.

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.
 
Small Business Times Commercial Real Estate & Development Conference, Thursday, Nov. 8, at the Italian Community Center, 631 E. Chicago St., in downtown Milwaukee. For more information about attending the breakfast conference, contact Sarah Wilson of Small Business Times at (414) 277-8181, ext. 129, or at sarah.wilson@biztimes.com.

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