Real Estate Weekly for Wednesday, April 23, 2008

Wednesday, April 23, 2008

Development Forum will feature municipal planners

Representatives from municipalities, business improvement districts and development-related nonprofit organizations will present their latest development opportunities at the Development Forum during the BizTech Expo next week. The Development Forum will take place from 1:30 to 4 p.m. on Thursday, May 1, at the BizTech Expo in the Wisconsin Exposition Center at State Fair Park in West Allis.

The forum will provide networking opportunities for government officials, developers, brokers and other commercial real estate professionals. Representatives from several municipalities, including the City of Milwaukee, Brookfield, Franklin, Greenfield, Port Washington, West Bend and Cudahy, will make easel presentations on development opportunities in their communities. Representatives of Menomonee Valley Partners and Historic King Drive also will make presentations.

The event is sponsored by the Society of Industrial & Office Realtors (SIOR). To register to attend the Development Forum, visit http://expo.biztimes.com/expo/development.cfm.

West Bend Mutual completes expansion

West Bend Mutual Insurance Co. employees recently moved into the 214,000-square-foot building addition that doubled the size of the company's corporate headquarters at 1900 S. 18th Ave., West Bend. The expansion includes a massive, 14,600-square-foot dinging area (with a 42-foot ceiling), a 7,100-square-foot fitness center, a 25,000-square-foot training center and a 400-space parking structure.

The company has about 800 employees that work at the corporate headquarters, which was originally built in 1991. "The problem with this building was, with 800 people, we didn't have enough cafeteria (space, we didn't have enough training rooms, the auditorium was too small, we didn't have enough bathrooms," said president and chief operating officer Kevin Steiner. The expanded facility should provide enough space for eight to 15 years, he said.

"We certainly will have more people that will work in the field and remotely," Steiner said. "If we didn't have that we could fill this building in a matter of five to eight years. But because we have a strategy, with respect to remote workers, that's going to relieve some of the pressure on when the next expansion comes. We set the building up and we overbuilt a bit on cafeteria and meeting space so when the time comes all we do is we put a wing (onto the cafeteria). We've made sure to build this building to just put on a wing of workspace and we'll have enough infrastructure to be able to support that."

Soft real estate market continues to drag on M&I Bank

Marshall & Ilsley Corp. continues to take a pounding from its real estate investments, announcing recently that its first quarter net income dropped 32.5 percent to $146.2 million from $216.8 million in the same period a year ago.

The Milwaukee-based parent company of M&I Bank reported quarterly per share net income of 56 cents, down from 83 cents a year earlier.

"The continued stress on M&I's construction and development portfolio led to further elevated charge-offs and provisions. M&I posted first quarter net charge-offs of $131 million and a loan loss provision of $146 million," the company said in a statement.

Speaking to a conference call with analysts, Greg Smith, chief financial officer, said the company's quarterly results reflect the "challenging" environment faced by the banking industry today. He said the company expects to continue to see "nonperforming loans" escalate in the commercial and residential real estate markets.

M&I is incurring real estate losses in its Arizona and Florida markets, where the company has been expanding in recent years. Those markets also were among the most distressed in the bursting housing bubble.

Deal of the week

American Apparel to open east side store
American Apparel Retail Inc. leased 3,731 square feet of space in Kenilworth Square, 2615 N. Prospect Ave., Milwaukee, from Kenilworth Retail LLC. Allison Kuchny and Dan Rosenfeld of Mid-America Real Estate represented Kenilworth Retail and Brian Vanevenhoven and Bruce Westling of NAI MLG Commercial represented American Apparel in brokering the deal. This is the latest retailer that has committed to the Kenilworth building, located on Milwaukee's east side. The building also has an Urban Outfitters store.

Real estate profile: Robert Barr

Company: Continuum Architects + Planners, S.C.
Title: Principal
Education: University of Wisconsin-Milwaukee -- Bachelor of Science in Architecture, 1989; University of Wisconsin-Milwaukee -- School of Engineering, 1982 – 1985.
City of Residence: Milwaukee
Family: Married, two children - a 10-year-old daughter and a 8 year-old son.
Hobbies and Interests: "Travel, golf, and hiking."
What are you working on? "Chazen Museum of Art Expansion - University of Wisconsin-Madison campus."
How does the market look to you? "Full of opportunity. Things are terrific for Continuum. Our growth continues to be very healthy and we are well-positioned for the future."
What was the best deal you've ever been involved in? "The entrepreneurial decision to start the firm with my partners."

Real estate people in the news

Milwaukee-based Inland Companies Inc. recently hired Kathryn Baker as a property accountant. The company also announced that Andy Voelker has recently been promoted to construction superintendent for Inland Construction.

Kenosha-based Riley Construction Company Inc. recently hired Dan Gellings as executive vice president. He will led the operations of the company's Milwaukee office Gellings is a member of the Wisconsin Healthcare Engineers Association and is certified in health care facility construction, infection control and risk management. Prior to joining Riley Construction, he spent 24 years with CD Smith Construction Co. in Fond du Lac.

Brookfield-based Shorewest Realtors recently hired Andy Stillman as a sales associate in its Shorewood office.

Milwaukee-based Kahler Slater recently hired Gus Reed as a landscape architect, working for the company’s Performa Higher Education business unit. He previously worked for landscape architecture firms in Washington, Oregon and New York. Kahler Slater also recently hired Adrienne Harvey as a designer in the firm’s interior design discipline. Harvey was previously with Zimmerman Architectural Studios of Milwaukee.

Real estate odds and ends

Hotel Brokers International presents leadership award to Ron McCord
Hotel Brokers International (HBI), announced that Ron McCord the owner-broker of Oconomowoc-based Milmark Hotel/Motel Investments, LLC, has received HBI’s top leadership honor, the Noah L. Canfield Distinguished Service Award. The award recognizes HBI member brokers or associates who have demonstrated distinctive leadership within the organization and the hospitality industry at large.

Real estate events

IREM ARM Tenant Law Breakfast, May 8, 8-10:30 a.m., Wisconsin Association Management, 11801 W. Silver Spring Dr., Suite 200, Milwaukee. Call (414) 476-4736 for more information.

Hunzinger Construction Company's Green Building Conference, Thursday, May 8, 8 a.m.-1 p.m., Hunzinger University, 21050 Enterprise Ave., Brookfield. Call (262) 780-9126 for more information.

BOMA Signature Event, Wednesday, May 14, 11:30 a.m.-2 p.m, Milwaukee Athletic Club, 758 N. Broadway, Milwaukee.

IREM Building Tour, tour of the former Pabst brewery, Thursday, May 15, 4-6 p.m. Call (414) 476-4736 for more information.

IREM Golf Outing, Monday, June 2, 7 a.m.-7 p.m., The Legend at Brandybrook, 1 Legend Way, Wales. Call (414) 476-4736 for more information.

WCREW Women in Real Estate Leadership Awards, Wednesday, June 4, 11:30-1:30 p.m., Italian Community Center, 631 E. Chicago St., Milwaukee. Call (414) 755-3365 for more information.

Real Estate Alliance for Charity (REACH) Golf Outing, Wednesday, June 11, 10:30 a.m., Brown Deer Golf Course, 7625 Range Line Road, Milwaukee. Call (414) 202-5294 for more information.

CARW Summer Sampler, Wednesday, June 18, 5:30-8 p.m., Miller Pavilion at O'Donnell Park, 910 E Michigan St., Milwaukee. Call (414) 271-2021 for more information.

BOMA Golf Outing, Monday, July 14, Tuckaway Country Club, 6901 W. Drexel Ave., Franklin.

IREM Focus on Friends, Thursday, July 17, 5:30-8 p.m., Milwaukee Yacht Club, 1700 N. Lincoln Memorial Dr., Milwaukee. Call (414) 476-4736 for more information.

SIOR Scholarship Golf Outing, Monday, July 28, 11 a.m. registration, 12:30 p.m. start time, 6 p.m. dinner, Meadow Valleys at Blackwolf Run, Kohler. For more information call Bob Dufek at (414) 961-0496.

WCREW Golf Outing, Tuesday, Aug. 5, 1-7:30 p.m., The Bog, 3121 County Highway I, Saukville. Call (414) 755-3365 for more information.

IREM ARM Young Professionals Brain Storming, Thursday, Aug. 7, 8-10:30 a.m., Meadows Apartment Community, 2400 Springdale Road, Waukesha. Call (414) 476-4736 for more information.

CARW Golf Outing, Monday, Aug. 25, North Shore Country Club, 3100 W Country Club Dr., Mequon, 10:30 a.m. – 7:30 p.m. Call (414) 271-2021 for more information.

IREM Program Lunch, Thursday, Sept. 18, 11:30 a.m. – 1 p.m., Wisconsin Club, 900 W. Wisconsin Ave., Milwaukee.

BOMA Luncheon, Wednesday, Oct. 8, 11:30 a.m., Milwaukee Athletic Club, 758 N. Broadway, Milwaukee.

IREM Program Lunch/Officer Installation, Thursday, Oct. 23, 11:30 a.m.-1 p.m. Wisconsin Club, 900 W. Wisconsin Ave., Milwaukee. Call (414) 476-4736 for more information.

WCREW Showcase Awards Program, Thursday, Oct. 23, 5-8 p.m., Italian Community Center, 631 E. Chicago St., Milwaukee. Call (414) 755-3365 for more information.
IREM ARM Successful Management Practices, Wednesday, Nov. 12, 8-10:30 a.m., Wisconsin Association Management, 11801 W. Silver Spring Dr., Suite 200, Milwaukee. Call (414) 476-4736 for more information.

BOMA Luncheon, Wednesday, Nov. 12, 11:30 a.m., Milwaukee Athletic Club, 758 N. Broadway, Milwaukee.

NAIOP 2008 Industrial and Office Market Update, Wednesday, Dec. 3, 7:30-9 a.m., Italian Community Center, 631 E. Chicago St., Milwaukee. Call (262) 522-6375 for more information.

IREM Holiday Party, Thursday, Dec. 4, 6:30-8 p.m., North Hills Country Club, N73 W13430 Appleton Ave., Menomonee Falls. Call (414) 476-4736 for more information.

BOMA/AOMA Holiday Party, Tuesday, Dec. 9, Westmoor Country Club, 400 S. Moorland Road, Brookfield.

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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.