A developer who had more than $324,000 in overdue property taxes as of late July, and has been unable to get city approval for a project in Brewers Hill because of unpaid building code violation fines, plans to convert a 103-year-old, seven-story building in Walker's Point into an upscale apartment building. The developer is Tim Olson, principal of Olson Management Group. He plans to purchase the 98,035-square-foot building at 223 W. Pittsburg Ave., Milwaukee, from the Ronald and Miriam J. Cohen Family Limited Partnership.

"I do have it under contract to purchase right after the first of the year," Olson said. The building is occupied by Ron Cohen's company, Shelton-Reynolds Inc., an industrial fabrics and webbing distributor. Shelton-Reynolds will move its offices to Mequon and eliminate its warehouse function, Cohen said. The company will ship from its vendors instead of keeping the product at a warehouse in Milwaukee, he said. The company will eliminate a few positions. Those employees are retiring, Cohen said. Cohen said he has not yet signed a lease for office space in Mequon.

Cohen and Olson declined to disclose the sale price for the building. The property has an assessed value of $967,000, according to city records. The assessed value of the property has been climbing recently, resulting in "ridiculously high" property taxes, Cohen said. The tax increase is one of the reasons the company is moving, Cohen said. "The City of Milwaukee is constantly raising taxes," he said. "The best use of the area is condos and apartments. All of a sudden (the property) is valuable, and the city jacks (the assessment and property taxes) up."

Olson said he plans to spend about $10 million to acquire and redevelop the building with more than 60 luxury apartments. The apartments will have between 600 and 1,800 square feet of space. Olson plans to add an eighth floor to the building, which will have six penthouses with monthly rents of about $2,400. Olson said he also plans to seek historic preservation tax credits for the building.

The redevelopment of the Historic Third Ward is spreading into the Walker's Point area, making the building attractive, Olson said. "There really isn't much left in the Third Ward to develop," he said. "(Walker's Point) is going to be like what we have in the Third Ward now." Olson and Sonny Bando have proposed a five-story, 53-unit apartment and condominium development northwest of East Brown Street and North Holton Street in Brewers Hill. However, aldermen balked at approving a re-zoning request for the project because Olson still owes about $26,000 in building code violation fines, which are due Sept. 26. In addition, a report by the Department of Neighborhood Services indicated that Olson owed $324,716 in overdue property taxes as of July 27.

Olson said his goal is to get the fines and overdue property tax payments paid so he can convince aldermen to approve the Brewers Hill project. He is hoping to make those payments and receive Common Council approval for the project in September. "I anticipate taking care of what they want and moving forward with that project," he said. "It's on Holton Street. Nobody has developed there. Nobody has invested in that area."

Olson also recently broke ground for two smaller projects. He is building a $2 million development with six townhouses, in three-story side-by-side units, on a 10,800-square-foot lot at the northeast corner of Brown and Buffum streets in Brewers Hill. The townhouses cost about $370,000 each and five of the six units have been sold, Olson said. The project is expected to be complete in May, he said. A duplex and garage were demolished to make way for the development.

Olson and Bando also recently broke ground on a three-story, six-unit apartment building at 924-26 N. 16th St., near the Marquette University campus. A duplex was razed to make way for the project, which is expected to be completed in June.

Olson's plans in Walker's Point come on the heels of the Milwaukee Common Council approving an ordinance requiring each applicant before the Board of Zoning Appeals and the City Plan Commission to submit a signed affidavit indicating whether they owe the city money for a range of items, including delinquent property taxes and assessments, unpaid judgments and outstanding health and building code violations. The ordinance's author, Alderman Robert Bauman, said the new requirement will provide city officials with an important tool they can use to collect unpaid taxes, judgments and fines - as well as a means to get property owners and landlords to comply with code violation orders and to make sure they abate nuisances.

Milwaukee-based The Dieringer Research Group Inc. plans to move from 3064 N. 78th St. to Brookfield. The company recently purchased a 26,000-square-foot office building at 180-200 Bishops Way, Brookfield, for $1.6 million from Burr-Milwaukee Properties. The property has an assessed value of $1.4 million, according to Waukesha County records. John Czarnecki of Apex Commercial represented Burr-Milwaukee Properties and Charlotte Zurn of MLG Commercial represented Dieringer in brokering the sale. The company has been located in a 12,000-square-foot building near 78th Street and Burleigh for more than 30 years. "We needed more space," said vice president and treasurer Robert Dieringer Jr. "(The Brookfield location) is very beautiful, very tranquil, a good location for a business." The company will occupy about 15,000 square feet of space in the Brookfield building and will lease out about 5,000 square feet. In addition, two existing tenants, Unisys and Laris Rehabilitation, will continue to occupy space in the building. "As we grow we will expand into the entire building," Dieringer said. The company has about 125 employees, 50 full-time and 75 part-time call center employees. The company plans to move in October and will sell the Milwaukee building, with Zurn's assistance.

City of Cudahy officials finally put a dagger into the heart of the Iceport project. On Tuesday the city and Sportsites LLC, the Iceport developer, signed an agreement to end the project. Sportsites also agreed to sell the entire 26-acre site to Menomonee Falls-based Continental Properties Company Inc.

"I am pleased to put the Iceport behind us and I look forward to working with Continental Properties, which is a first class commercial developer," said Cudahy Mayor Ryan McCue. "This is a victory for the City of Cudahy. We put an end to the Iceport and severed our relationship with Sportsites. If Sportsites doesn't live up to any portion of the stipulation, the City of Cudahy will receive ownership of all 26 acres free and clear."

The Iceport was a proposed $29 million hockey and skating rink complex that was to be built near East Layton Avenue and South Nicholson Avenue. It was only partially built, and in 2004 construction was halted because of financing problems. Later, city officials declared the project in default of a development agreement with the city. The Iceport was to anchor a mixed use commercial development which was expected to include a hotel, restaurants and stores. However, the only commercial development that occured near the Iceport site was a Walgreens store and a Maritime Savings Bank branch.

Milwaukee-based Siegel-Gallagher Management Company has been informed that it will be on the Inc. magazine 5,000 list of the fastest-growing companies in the nation. The list will be published by Inc. later this month. Siegel-Gallagher's revenue has grown about 35 percent during the last year, said president David Behnke. In addition, the company has added 18 employees during the last year, bringing total employment up to 52. "(The company's growth) is because of two things," Behnke said. "The quality of the people we have and all of the infrastructure and training and procedures we have put in place over the years. That combination has resulted in a superior management product. People are noticing and we're getting more clients. We're trying to set ourselves apart from the competition. It's all about the people."

Siegel-Gallagher Inc. and Siegel-Gallagher Management Company provides commercial real estate brokerage, property management and construction services. The construction division was added three years ago. The breadth of services allows Siegel-Gallagher to assist building owners in the purchase, leasing, remodeling, management and sale of their buildings. The construction division has done build-outs for several interior office spaces, including more than 100,000 square feet at Summit Place in West Allis. "That whole division is taking off," said Behnke.

The company has added several buildings to its brokerage and management portfolio during the last six months including 250 Plaza, the West Allis Center, airport atrium. It is now providing management for the Blatz Condominiums in Milwaukee and Metropolitan Place Condominiums in Madison.
Another change at Siegel-Gallagher occurred at the beginning of the year when executive vice president John Matheson became a principal with the firm.

Title: President
Company: VJS Construction Services Inc.
Education: Bachelor's degree in construction engineering from Iowa State University
Family: Married with three children
City of Residence: Delafield
Hobbies and Interests: Golf and coaching basketball.
What are you working on? "I'm working on running a $110 million-plus company."
How does the market look to you? "Excluding residential, the balance of the market looks relatively strong. I am hoping things begin to open up along the Park East corridor to generate more projects."
What was the best deal you've ever been involved in? "We are finishing up a major renovation project for Foley & Lardner in the U.S. Bank Tower. Over 100 firms competed for this project, and I was very proud when VJS was selected."
What was the funniest moment of your career? "Trying to explain to my future wife that VJS was not a jewelry store. We were formerly known as Voss Jorgensen Schueler and she kept thinking we were Voss Jorgensen Jewelers."

Alpha Source Investments LLC purchased a 41,545-square-foot industrial building at 6619 W. Calumet Road, Milwaukee, from JT Investments LLC. Scott Furmanski of CB Richard Ellis represented JT Investments, Jim Babiasz and Dan Linder of The Boerke Company represented Alpha Source in brokering the deal. The property has an assessed value of $1,529,300, according to city records. The sale price was not disclosed. Alpha Source will move its operations from 12104 W. Carmen Ave., Milwaukee, to the Calumet Road building, which is currently vacant, Babiasz said. "They have just outgrown their current facility," he said. "People are sitting on top of people and the phone is ringing off the hook." The company distributes medical equipment products, including batteries.

Cecillia Boland recently purchased the 25,000-square-foot former Cream City Brewery stables building at 1523-51 N. 13th St., Milwaukee, from David E. Phelps and Dawn Boland for $300,000. The sale price is well above the property's assessed value of $113,000, according to city records. The structure, built in 1910, was originally used to stable brewery wagon horses for Cream City Brewery. James Benz and Michael Seramur of Ogden & Company Inc. brokered the transaction for the buyer and the sellers. "The new owner needs warehouse space and will be restoring the building," Seramur said. "It's a neat building, across the freeway from (the former) Pabst (brewery property)." 

Milwaukee-based Action Property Management recently purchased the 270-unit Brookside Apartments complex at 1102 Brookside Drive and 501 11th Avenue in Grafton from Robert A. Schroeder of Cedarburg. The sale price was not disclosed. Schroeder was represented by Gordy Welch and Jack Arnett of Siegel-Gallagher in brokering the sale.

Nominations are now being accepted for the 2007 CG Schmidt Ovation Award for Corporate Support. Designed to inspire giving in small and medium-sized businesses, the award honors smaller, lesser-known companies that give back to their communities in the form of in-kind support, board involvement or the encouragement of employee volunteerism. The CG Schmidt Foundation will donate $2,500 to either the nominating non-profit organization or the charity of the winning business's choice. A $1,000 contribution will also be made to a honorable mention candidate. The Ovation Award for Corporate Support will be presented at the Donors Forum of Wisconsin’s Annual Statewide Conference on Philanthropy on Oct. 17. Nomination forms can be obtained at: www.cgschmidt.com/pdfs/ovation_nomination_form07.pdf. They must be turned in by Sept. 14.

Irvine, Calif.-based Help-U-Sell Real Estate, a provider of set-fee real estate services, announced recently that the company is planning to expand into the Milwaukee area this year. "While many of our competitors are downsizing or in a retreat mode because of the current market conditions, we have launched an aggressive growth campaign," said Bryan Drakulich, chief operating officer of Help-U-Sell Real Estate. "We have grown over 900 percent in the last decade, and plan to continue to grow for the foreseeable future." Help-U-Sell Real Estate is the world's largest set-fee real estate company, with over 800 offices in 46 states, and operations in South Africa, and the Philippines.

Brookfield-based Shorewest Realtors recently hired Jeff Kloth as a sales associate in its Elmbrook/Wauwatosa office at 11622 W. North Avenue in Wauwatosa. Shorewest also recently promoted sales associate Martrio Reed to assistant sales director of its downtown Milwaukee office.

Wauwatosa-based AG Architecture recently hired Steven Ketterhagen.

Brookfield-based Total Team Construction LLC recently promoted Dan Scharf from assistant project manager/superintendent to full-time project manager/superintendent. Adam Wojcik and Jason Sevener were hired as assistant project manager/superintendents. Angie Pushkash was promoted from intern to part-time assistant project manager/superintendent. Kayla Catalani was hired as an office and account assistant.

Gary Jorgensen, chairman of the board for Pewaukee-based VJS Construction Services recently received the community service award from the Associated General Contractors of Greater Milwaukee. The award is given to an individual who has made a major contribution to the community.

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.

ARM After Hours Social, Thursday, Aug. 23, 5-8 p.m., Fridays Front Row Sports Grill, Miller Park, Milwaukee.

Wisconsin Commercial Real Estate Women (WCREW) tour of Bayshore Town Center, Wednesday, Aug. 29, 5:30-7 p.m. Meet at Devon Seafood Grill, 5715 N. Bayshore Dr. Cost is $15 for WCREW members, $20 for non-members. For more information contact Patty Fenstad at (262) 236-4177.

How Tax Incremental Financing Works and Why, Wednesday, Oct. 3, 8:30 a.m. to 12 p.m., Hilton Milwaukee City Center, 509 W. Wisconsin Ave. For more information contact NAIOP Wisconsin chapter executive director Chris Zipperer at (262) 522-6375.

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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