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Real Estate Weekly

Wednesday, January 30, 2008

Developer plans boutique hotel in Walworth County

Jenison, Mich.-based Rookus Group wants to build a 100-room boutique hotel and spa southeast of Black Church Road and Fontana Ridge Road, just outside of the Village of Fontana in Walworth County.

The site is in the Town of Walworth, but it also lies within Fontana's extraterritorial zoning area so the village must approve the development even if the property is not annexed to the village, Fontana village administrator Kelly E. Hayden-Staggs said.

The property is zoned for business use, so a hotel would be permitted there, Hayden-Staggs said. However, the developer still needs to submit more details about the project and must work out parking, traffic and other engineering issues with the village, she said.

"At the size that it's proposed right now, there are a lot of issues," Hayden-Staggs said.

UW-Whitewater completes renovations to University Center

The University of Wisconsin-Whitewater recently reopened its James R. Connor University Center, following a $20.4 million renovation project.

"The campus community has been without its central gathering place for the last year-and-a-half, and I commend the students for their adjustments during this time," said Steve Summers, deputy assistant chancellor of student affairs. "Having the UC open again brings their gathering place back."

The project added an expanded art gallery, a convenience store, a coffee shop, a new student involvement complex, a recreation center, an auditorium, a ballroom, study spaces, state-of-the-art meeting rooms and an additional 6,000 square feet.

"I'm excited about the positive impact having the UC back on-line is going to have," said Bob Barry, director of the University Center. "Earlier last semester, we were giving some student groups tours of the new building. Even though the building was far from completed, the students could see its potential and were excited about it."

The University Center is supposed to serve the needs of the students, but in many ways it wasn't prior to the year-and-a-half renovation, university officials said. More than half of the student organizations had to hold meetings in academic buildings because of the lack of large meeting rooms in the UC. The infrastructure and meeting room technology needed major upgrades, officials said.

Quad/Graphic ponders expansion options

Sussex-based Quad/Graphics Inc. is making plans to build a $14 million, 225,000-square-foot expansion of its 900,000-square-foot plant in West Allis at 555 S. 108th St. The project was recently approved by the city's plan commission.

However, the company also is considering expansion of its plants in Virginia and Nevada and may expand one of those facilities instead, said Quad/Graphics spokeswoman Claire Ho. A decision will be made in the next month about which facility to expand, she said.

The company's West Allis facility is located northwest of Highway 100 and Theodore Trecker Road, just south of a Colder's store and is near the Zoo Interchange. The building addition would be used for production and warehousing, with some space for offices, mechanical support equipment and finishing and printing operations.

Quad would add an additional 80 employees at the plant if it is expanded.

Truck traffic at the building is expected to increase by about 15 percent if the facility is expansion.

If the project moves forward, construction for the addition would begin in the spring. The project would consist of a 195,000-square-foot, 35-foot high addition with a mezzanine, bringing the total size to 225,000 square feet. The addition would also have a 40-foot high penthouse on top of the north end of the building, with a total height of 75 feet, the equivalent of a seven-story building.

Adjustments made to Pabst Farms mall plans

Pabst Farms and its regional mall developer, Beechwood, Ohio-based Developers Diversified Realty Corp., recently submitted new plans for the retail development in an attempt to address concerns of city officials.

The biggest change is the addition of landscaping, a small pond, a water feature and a monument sign/wall that would block the view of the backs of the large retail buildings at the corner of Highway 67 and I-94. City officials see that as a key gateway to Oconomowoc and they do not want people to see the backs of buildings as they drive in off the freeway.

The updated plans also eliminate two, 150-room hotels and trimmed the amount of office, residential and retail space bringing the total square footage for the regional retail development down to just more than 2 million square feet from about 2.4 million square feet in the original plans.

The updated plans also provide more details about the layout of 600,000 square feet of big box stores on the east end of the site.

The project still includes a 16-screen movie theater complex, a 30,750-square-foot bookstore, several restaurants and four anchor stores (one 165,000 square feet, one 137,000 square feet, one 96,000 square feet and one 53,000 square feet).

Construction for the Pabst Farms regional mall is expected to begin this year and be complete in 2010.

Brookfield Sheraton completes renovations

Fairfax, Va.-based Crescent Hotels & Resorts recently completed a $10 million renovation project for its Sheraton Milwaukee Brookfield Hotel at 375 S. Moorland Road, Brookfield. The project took about a year to complete. The Sheraton is the latest of several hotels in the area to be remodeled. All of the hotel's 389 rooms were remodeled and flat panel televisions were added. The hotel's 19,000 square feet of meeting space was refurbished. The pool, lobby and public areas were remodeled. The project also added a new business center with computer work stations and a new fitness center.

The hotel, the largest in Brookfield, also recently named a new general manager, Gerald Rappaport, who was the general manager of the Hilton Milwaukee City Center for several years.

"It's been a lot of fun watching this hotel transform significantly over the past several months and we couldn't be more pleased with the final results," Rappaport said. "With our exciting renovation now complete, we should really be among the first places considered by anyone planning a special event or meeting here in the Milwaukee area. All of our banquet and meeting spaces are entirely new, and we have a team in place dedicated to ensuring that any event here is stress-free, memorable and extremely enjoyable."

Snap Fitness to open in the Third Ward

Snap Fitness, a 24-hour fitness club, will open in Milwaukee's Historic Third Ward on Feb. 22 at 256 E. Menomonee St. "In this residential area, deep in the heart of urban Milwaukee, we hope to draw from the myriad amount of apartment and condominium complexes, as well as the vast businesses that surround the new facility,” said Jill Zimmerman, a Snap Fitness franchisee who is one of the owners of the Third Ward fitness center along with Carrie Steinberger. They also own Snap Fitness locations in the Bay View neighborhood and in Colgate. The Bay View location has been a big success, which led them to try a location in the Third Ward, Zimmerman said. Chanhassen, Minn.-based Snap Fitness Inc. has franchisees opening several locations in southeastern Wisconsin in the last year.

Real estate profile: Michael P. Brush

Title: Senior project designer, associate
Company: Plunkett Raysich Architects LLP
Education: Bachelor of architecture, University of Minnesota, 1984
Family: 8-year-old daughter Tristen; and two sons, Kellen, age 10, and Devlin, age 13
City of Residence: Downtown Milwaukee
What are you working on? "Mayfair Woods, a 170,000-square-foot office building for Irgens Development Partners in Wauwatosa. A 220,000-square-foot addition to West Bend Mutual Insurance in West Bend. And several conceptual designs for prospective projects, including a 4 block parcel in Milwaukee's Park East Redevelopment area." 
How does the market look to you? "While the economic news continues its downward trend, we are still seeing a lot of activity in our Health Care Studio, where we are working on hospital additions and new clinics in Michigan and Wisconsin, as well as a Healthy Village in Roscoe, Ill., where a health club and clinic are built together to share services. We are also seeing a lot of work in specialized housing, including federally subsidized and student housing, and assisted living facilities. Corporate work is also strong right now, with the two projects I mentioned above and two more in our Madison office. And environmentally sensitive design is a rapidly growing market for us, with Mayfair Woods achieving a LEED Certified rating and the Tri-North Office in Madison achieving a LEED Gold rating."
What was the best deal you've ever been involved in? "Any project where the client is fully satisfied with the project I design for them is a great project for me. Two of my most recent favorites include the West Bend Mutual Insurance project and Blackhawk Church in Madison. I felt fully in tune with both of those clients, and fully enjoyed the process and the results. My proudest achievement so far is the Sixth Street Viaduct in Milwaukee, which I designed before joining PRA."
What was the funniest moment of your career? "Being an architect is pretty serious business most of the time, but one moment sticks out in my mind - My oldest son was at the beach building his first sand castle when he said, 'Look, Mommy! I made the scaffolding!' We still tell that story today as an example of how this profession can affect every aspect of an architect's life."

Real estate deal of the week

Waukegan, Ill.-based Coleman Cable Inc. will lease a 502,000-square-foot industrial building that is being built, on speculation, in Pleasant Prairie by Oak Brook, Ill.-based CenterPoint Properties.

The building is under construction and is located at 11290 80th Ave. in the LakeView Corporate Park. Coleman Cable plans to move into the facility by April 1, and plans to have 75 employees working in the facility by the end of the year.

Coleman Cable is a manufacturer and innovator of wire and cable products, servicing the electrical, electronic and automotive markets. The company will maintain its headquarters in Waukegan and will use the Pleasant Prairie facility for warehousing and distribution. Coleman Cable will consolidate its existing warehouse and distribution facilities in Indianapolis, Gurnee, Ill. and Waukegan, Ill. at the Pleasant Prairie facility, which has 490,000 square feet of warehouse space, 12,000 square feet of office space and 56 exterior truck docks.

"The Pleasant Prairie location is needed in order to meet growing demands due to the company's increasing sales and continued growth," said Gary Yetman, president and chief executive officer of Coleman Cable. "This will mark another important milestone for Coleman and should enable us to be more efficient in our distribution operations, to take advantage of recent developments in supply chain systems, and, ultimately and most importantly, to better serve our customers. At the same time, the pleasant Prairie location will allow the company to consolidate distribution facilities and reduce costs, while simultaneously establishing a platform to continue our track record of providing first-in-class logistics, delivery and customer service."

Kenosha County has attracted several distribution centers in recent years, including many that are used by northern Illinois firms that are having trouble finding land for industrial development in the Chicago area and are taking advantage of lower costs in Wisconsin.

Real estate people in the news

Milwaukee-based Kahler Slater Architects Inc. recently welcomed back a former principal and senior health Care designer to its ranks. Joe Heinowski, who was previously with the firm for 10 years, resumes his title as principal. He will be providing leadership on health care design projects around the United States, including current work on Martha Jefferson Hospital in Charlottesville, Va.

Brookfield-based Shorewest Realtors recently added Carole Stanczak as a sales associate to its Delavan office. 

Hartland-based PDC Midwest, Inc. recently hired Kimberly Carl as an administrative assistant.

Coldwell Banker Residential Brokerage recently added Jesse Sanchez to the sales team in its Brookfield office.

Butler-based Berghammer Construction Corp. recent hired Gino Carini as director of sales. Prior to joining Berghammer, Carini has spent 15 years in the real estate and construction industry.

 

Real estate odds and ends

Metro Milwaukee had a negative absorption of 130,000 square feet of industrial space during the fourth quarter of 2007, according to a recent report by Boston-based Colliers International, whose local affiliate is Milwaukee-based Colliers Barry. Still, that was an improvement over a negative absorption of 450,000 square feet of industrial space for the metro area during the fourth quarter of 2006. According to the Colliers report the national industrial space market weakened during the fourth quarter of 2007. “There's no debating the fact that the warehouse market has weakened in step with the economy,” said Ross Moore, senior vice president and director of market and economic research for Colliers International. “Even though the export sector continues to fire on all cylinders, the strength of the domestic economy has been shaken. As a result, businesses are reluctant to sign leases. This situation may unfortunately persist through mid-year 2008, but Colliers remains confident that the underlying economy is strong and will thus respond favorably to recent actions by the Fed and other policymakers.”

Wauwatosa-based Selzer-Ornst Co. recently received the “2007 Award for Outstanding Safety Performance” for its exemplary safety record from Sheboygan-based Acuity Insurance Company.

A new vegetarian restaurant, called Café Mann, will open in Brookfield on Feb. 18 at 3815 N. Brookfield Road, Suite 100, in the Brookfield Town Centre. The restaurant will be one of the Milwaukee area's first 100 percent vegetable and grain-based restaurants.

The Milwaukee/NARI Home Improvement Council, Inc. the local chapter of the National Association of the Remodeling Industry is seeking ideas from the community for the development of an association mascot. “Over the last several months, the Milwaukee/NARI Marketing Committee has discussed the establishment of an official mascot for the chapter for marketing purposes,” said Scott Cline, Milwaukee/NARI president. “We also want to create a 'symbol' for the public to be comfortable with in eventually contracting with one of our members.” Submissions must include the entrants name and contact information, with the design submitted electronically to info@milwaukeenari.com.  Entries are due by 4:00 pm on Friday, February 29, 2008.  The designer of the winning entry will receive a $500 cash prize and will be notified once the selection is made.

Real estate events

NAIOP members only Harley-Davidson Museum tour, Wednesday, Jan. 30, 4:30-6:30 p.m., corner of 6th Street and Canal Street, Milwaukee. For more information call (262) 522-6375.

The 46th annual Milwaukee/NARI Home Improvement Show, Thursday, Feb. 7 - Sun., Feb. 10, 2008 at the Wisconsin Exposition Center at State Fair Park in West Allis.

BOMA/AOMA Madness, watch the NCAA men's basketball tournament, Thursday, March 20, 11 a.m. to 4 p.m., Rock Bottom Brewery, 740 N. Plankinton, Milwaukee. Cost is $25 for BOMA/AOMA members and $40 for non-Members. For more info call (414) 278-7557.

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Andrew Weiland 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.

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