Wednesday, April 9, 2008
Woodman's plans more suburban stores
Janesville-based Woodman's Food Markets, which recently opened a new store in Oak Creek, plans to build two more stores in the Milwaukee area and is looking for sites in the northern and western suburbs, according to Bret Backus, vice president of corporate real estate for Woodman's.
Woodman's typically looks for a site with at least 20 acres, Backus said. The prototypical Woodman's store has 240,000 square feet of space, he said. The Oak Creek store at 8131 S. Howell Ave. is about 225,000 square feet. The company's only other store in southeastern Wisconsin is in Kenosha.
Woodman's is a discount grocery store. Its core customer base comes from within a five-mile radius of the store, but some customers travel 30 miles or more to take advantage of the low prices, Backus said. If possible, Woodman's would like a site near a freeway, he said.
"We're looking for regional locations," Backus said. Woodman's is open to all possibilities, but considers the Highway 41/45 corridor in Menomonee Falls and Germantown a more likely location for the northern suburb store than the I-43 corridor in Ozaukee County, Backus said.
The Oak Creek store covers the southern suburbs for Woodman's, he said.
Backus said Woodman's has no preference yet about where the next Milwaukee area store will be built, either the western or northern suburbs. The next site will depend on the best opportunity that arises, he said.
Woodman's has 12 stores and is planning to open more stores in northern Illinois, where it currently has three stores. The company also is planning to open a store in the Madison suburb of Sun Prairie.
Bando Chmura Group plans to buy another Pabst brewery building
The Bando Chmura Group LLC, which purchased the three-story 28,000-square-foot former research lab building in the former Pabst brewery complex, also plans to buy the three-story, 14,000-square-foot building next door.
The Bando Chmura Group includes former Green Bay Packer Mark Chmura, his broker Matt Chmura, and Sonny Bando, the son of former Milwaukee Brewer Sal Bando. The group also owns The Iron Block Building at 205 E. Wisconsin Ave. and The Germania Building at 135 W. Wells St., both in downtown Milwaukee.
The 14,000-square-foot building at the Pabst complex is known as the former blacksmith, wagon and paint shop building. "We currently are in negotiations (to buy the building)," said Matt Chmura. "We hope to have it under contract shortly," said Mike Mervis, assistant for Zilber Ltd. founder Joseph Zilber, who is redeveloping the former brewery complex into a mixed-use urban neighborhood.
Zilber's plans to sell the building to the owners of an upscale flower shop in Milwaukee's Washington Heights neighborhood have fallen through, creating the opportunity for The Bando Chmura Group to buy it instead. Chris Dobs, one of the owners of the flower store, Urban Sense, confirmed that his group's deal to buy the building is "kaput."
Dobs and the store's other owners, Damingo Jones and David Block, had planned to purchase the building and move their upscale European flower shop from 5911 W. Vliet St. to the building. They also planned to create four two-story loft condos in the building. However, the project ran into problems, Dobs said. They were unable to obtain financing for the project, and the partners could not work out some issues with Zilber Ltd. representatives, he said.
Dobs said three banks had given initial approval to finance the project, but later would not approve financing at terms acceptable to the partners. Also, the partners balked at some requests from Zilber representatives, including paying for some improvements around the building, such as a manhole cover in a parking lot, and they did not want to add an outdoor staircase next to the building, Dobs said. "The Brewery Project is a wonderful real estate opportunity and it may have been more complex for them than originally thought," said Mervis.
In March, Harold Block, the attorney for the Urban Sense owners, sent a letter to Zilber's representatives, saying that his clients, "clearly are in over their heads in a business transaction such as this." The letter stated that Zilber refunded $6,000 in earnest money to the partners.
Since their plans to buy the Pabst brewery building fell apart, the Urban Sense owners have decided instead to lease space in a building at 5827 W. Vliet St., two doors down from their current location. They will add a greenhouse to that space and plan to move there in about two months, Dobs said. "We got more bang for the buck out west," he said. "It will just all work out better for us."
Simon Group plans mixed use development for St. Coletta's campus in Jefferson
Brookfield-based Simon Group Ltd. has reached a tentative agreement to purchase the 174-acre historic St. Coletta's campus in Jefferson, and plans to create a 30-acre commerce center utilizing the historic buildings on the campus. Simon Group is also planning 40 acres of condominiums and 100 acres of single family homes.
"The Simon Group looks forward to working with St. Coletta of Wisconsin and the City of Jefferson to create a prosperous mixed use development in which people can live, work and be entertained," said Scott Simon, president of Simon Group. "Our goal is to maintain the character and architectural integrity that St. Coletta embodies throughout the Sanctuary Ridge development." The campus is located on Highway 18 on the east side of Jefferson. It is about a 30 minute drive to Madison and Brookfield.
Simon Group is in early discussions with city officials about tax incremental financing for the project. "This is an ideal project for TIF funding," said Jefferson Mayor Gary Myers. "There are no developer subsidies being requested, just infrastructure. Because St. Coletta is tax-exempt, the current tax income to the city is zero. All tax growth generated from the project will be positive and this project should fund itself easily."
The sale agreement was brokered by Milwaukee-based Colliers Barry. The terms of the sale allow Simon Group until early June to complete engineering, environmental feasibility and economic studies prior to closing.
The property sale involves just 174 of the total 650 acres currently held by St. Coletta in the Jefferson area. St. Coletta plans to eventually relocate its headquarters to adjacent property. St. Coletta provides care for disabled individuals. It has been shifting its business model in recent years from an institutional approach to a community-integrated approach. Patients receiving residential services now live off campus and are served in community homes.
"The sale is a major component of a planned transformation that has been underway for the past 10 years," said Anthony LoDuca, St. Coletta president and CEO. "We have been developing state-of-the-art community-based residential and vocational/day services for the past decade. Because the campus was such a significant part of St. Coletta's history, some people have thought that the sale is taking place because our organization is closing. St. Coletta's is not closing. St. Coletta is very much alive, growing and leading our industry in the care and support of adults with developmental disabilities."
Developer files notice of injury for Lake Geneva referendum
Palatine, Ill.-based The Hummel Group and Skaneateles, N.Y.-based The Mirbeau Companies filed a Notice of Injury alleging that Lake Geneva officials violated the law when they held an advisory referendum to gauge public opinion about the company's proposed 710-acre resort, winery and 882-home residential development.
The project has generated a significant amount of controversy from residents who say it would be too dense and would diminish the water quality of Geneva Lake.
In an unusual step for a proposed real estate development, city officials decided to ask voters in a recent advisory referendum about whether or not the city should approve the project.
In the referendum voters opposed the development by approximately a 3-to-1 margin.
"It is important to state that we are not going anywhere," said John Terrell development executive for Mirbeau-Hummel. "We intend on protecting our property and procedural rights. Therefore, we have served and filed a notice of injury on the city and common council, pursuant to Wisconsin statute."
The notice of injury alleges that Lake Geneva officials violated the rights of the developer.
"Action by the city and members of the council to defer making a decision…until after receiving the results of a public referendum deprived Mirbeau of a fair and impartial hearing without due process of law," the notice of injury states.
"Adoption of the referendum procedure by the city and members of the council, with the stated intent of treating the results as binding, constitutes an improper delegation of legislative authority and is an improper exercise of power…in violation of the substantive due process clause of the Fourteenth Amendment of the United States Constitution," the notice states.
Lake Geneva City Administrator Dennis Jordan declined to comment on the notice of injury.
Terrell said Mirbeau-Hummel is filing the notice to keep its options open so it can file a lawsuit against the city, if necessary.
"We would hope not (to have to file a lawsuit)," he said. "Our intent is to move forward with the process. We are hopeful that we can find common ground with the Common Council and work with them to determine what is in the best interest of the city and its residents."
West Bend Mutual HQ expansion nearing completion
West Bend Mutual Insurance Co. plans to hold a ribbon-cutting ceremony on Thursday, May 8, to celebrate the completion of the 214,000-square-foot expansion of the company's corporate headquarters at 1900 S. 18th Ave. in West Bend. The expansion will provide enough space for 1,500 employees, which should suit the company's needs until 2016. The company's headquarters was completed in 1991, with enough space for 500 employees. The company has about twice that many working in the facility.
"The growth we've experienced in the last five years has been incredible," said Tony Warren, West Bend Mutual chief executive officer. "We have more than quadrupled our business. Facility expansion was absolutely necessary. As our company becomes larger, we need more people to provide our customers with the service they've come to expect." The expansion includes a 14,600-square-foot dining area, a 7,100-square-foot fitness center, a 25,000-square-foot training center, a 400-space parking structure, a West Bend Savings Bank branch and lactation rooms for nursing mothers.
The construction project began in July of 2006 and is expected to be complete by the middle of this month. Renovation work will be done to the original building for six months, through mid-October.
YMCA and Wheaton Franciscan Healthcare to build another healthy lifestyle village
The YMCA of Metropolitan Milwaukee and Wheaton Franciscan Healthcare, which are building a healthy lifestyle village in Brown Deer, are planning to build another healthy lifestyle village in Franklin. The healthy lifestyle village is a concept of creating a campus with a YMCA fitness center and a Wheaton Franciscan Healthcare clinic. The idea is people can go to the campus to learn, plan and take action to improve their health.
The Franklin healthy lifestyle village will be build on South 27th Street, just south of Rawson Avenue. There the YMCA will build a 45,000-square-foot fitness center and Wheaton Franciscan Healthcare will build a 20,000- to 30,000-squaure-foot clinic with physican offices, walk-in care, laboratory services and general radiology, including mammography.
The YMCA received a $1 million naming gift for the facility from Terry and Mary Briscoe. Terry Brisco is the CEO of National Insurance Company in Brookfield. He also serves on the board of directors of the YMCA of Metropolitan Milwaukee. The healthy lifestyle villages in Brown Deer and Franklin are both expected to open in 2009.
Scherrer Construction forms development subsidiary
Burlington-based Scherrer Construction Co. Inc. recently announced that it has created a subsidiary called Scherrer Development Group that will provide development services. Scherrer Development Group will offer development, design and construction services, financing/investment services and property management and leasing. It will operate out of the headquarters of Scherrer Construction in Burlington. Leslie Scherrer, the daughter of Scherrer Construction president Peter Scherrer, is the development group leader. Prior to joining Scherrer Development Group, she earned experience with a Madison-based commercial real estate development company where she focused on feasibility analysis, lender relations, investor relations and the financial strategy of the partnership. In addition, she worked for a Wisconsin-focused multi-family housing developer where she served as owner's representative by overseeing all components of property development including predevelopment, acquisition, financing, construction, leasing, and property stabilization.
Deals of the week
Verizon Wireless moves Milwaukee office to West Allis
Basking Ridge, N.J.-based Verizon Wireless recently moved its Milwaukee office out of The Tannery office complex at 700 W. Virginia St., Suite 300, in Milwaukee's Walker's Point neighborhood, to a larger space in the Lincoln Center II office building at 2514 S. 102nd St. in West Allis.
The new location positions the Verizon Wireless office just northwest of Interstate 894 and National Avenue. The new location has more space (10,600 square feet) compared with the 7,600-square-foot space in The Tannery building. Lyle Landowski of Inland Companies and Tom Treder of Commercial Property Associates represented Verizon Wireless, and Ned Purtell and Jeanine Sweeney of RFP Commercial Inc. represented the Lincoln Center II owner in brokering the lease.
"We've seen quite a bit of growth in an employee standpoint," said Carolyn Schamberger. "We really needed the additional space. (The building) met our needs in terms of space and convenience for our employees and is able to accommodate our future growth." Verizon Wireless needed more space to accommodate the growth of its Milwaukee office. The company has increased employment in the office from about 85 employees in 2006 to about 130.
Real Estate Profile: Eric Fors
Company: The Redmond Company
Title: President
Education: B.S. in architectural engineering, Milwaukee School of Engineering
City of Residence: Town of Spring Prairie
Hobbies and Interests: Downhill skiing, mountain biking, skeet shooting, and construction.
What are you working on? "We have been spending considerable time studying our strategic position in the marketplace and applying resources to leverage the benefits that we bring our clients early in the project to reduce their development risk. While maintaining our known presence in design and construction of retail and financial projects, we are promoting the lesser known projects in our portfolio; hospitality and industrial projects."
How does the market look to you? "There is no question that there are fewer opportunities in the marketplace today than there was this time last year, but we are confident that our product diversity and our ability to create opportunities will help us weather this economic phase."
What was the best deal you've ever been involved in? "For me, and for a good number of The Redmond Company employees, the best deals are the ones that present the most challenge, the ones that require us to overcome multiple obstacles. In recent memory, the best deal was the Staybridge Suites project in Franklin. The owner involved us in the project early while he was working to acquire the property. We were involved in completing the due diligence on the property, obtaining municipal and DNR approvals which included floodplain, wetland mitigation and grading activity near a navigable stream. We managed the pre-construction schedule to include design reviews at 30 percent, 70 percent and 100 percent design completion to identify deviation from budget and manage the deviation in accordance with the owner's direction. We helped coordinate the project plans with DOT plans for the right-of-way. Working with a team to handle all of these variables in a fashion resulting in a viable project is very rewarding."
What was the funniest moment of your career? "It's interesting. As we age, the most humiliating moments become the most humorous in retrospect. Fifteen years ago, I was flying to Pittsburgh with the general manager of our office to pitch a development, design and construction proposal to a national account. While speaking of the project using mostly my hands, I hit the edge of the unsteady table and my full glass of Pepsi rocked from side to side, but didn't appear as if it would topple over. Nonetheless, I reached for it as fast as I could for fear it would spill on the general manager. Of course, I failed to grab the glass but instead knocked it squarely in my boss' lap! He was well-tempered about the whole catastrophe, but I was mortified. Luckily, we closed the deal."
Real estate people in the news
Milwaukee-based law firm Whyte Hirschboeck Dudek S.C. recently hired Chris Mehring to its real estate team.

Wauwatosa-based AG Architecture recently added Erica Lambrecht and Eric Steingraeber to its architecture team.
Kenosha-based Partners In Design Architects Inc. recently hired Keith Kerwin as a senior project manager.
Providence, R.I.-based Gilbane Building Company recently promoted three employees in its Milwaukee office. John Nawrocki has been promoted to vice president. Adam Jelen has been promoted from senior project manager to project executive. Matt Riemer has been promoted to virtual construction engineer.
VJS Construction Services, Pewaukee, recently announced that Tina Miller joined the firm as project coordinator. Prior to coming to VJS Miller worked for Thomas & Egenhoefer Inc., in Menomonee Falls for over ten years.
Real estate odds and ends
Inland Companies named listing brokers for Bando Chmura portfolio
Milwaukee-based Inland Companies Inc. was recently named the exclusive listing brokers for a portfolio of three downtown historic office buildings owned by The Bando Chmura Group LLC. The portfolio includes the Iron Block Building at 205 E. Wisconsin Ave., the Germania Building at 135 W. Wells St. and The Pabst Brewery Research Lab (buildings 14 and 15) located on block six of the former Pabst Brewery complex. Lyle Landowki and Eric Hansch of Inland Companies are the listing brokers for the portfolio.
NAIOP launches new web site
The Wisconsin chapter of the National Association of Industrial and Office Properties (NAIOP) recently launched a new web site at: www.naiop-wi.org.
Real estate events
NAIOP PAC Fundraiser Masters Fantasy Golf Tournament Tee-Off Party, 5-6:30 p.m., Wednesday, April 9, Zim's Sports Bar, 770 N. Milwaukee St., Milwaukee. For more information call (262) 522-6375.
Wisconsin Commercial Real Estate Women (WCREW) 2008 Overview of the Downtown Real Estate Marketplace, Wednesday, April 16, 11:30 a.m.-1:30 p.m., NAI MLG Commercial's downtown Milwaukee office, 1110 N. Old World Third St. Call (414) 755-3365 for more information.
Choosing the Builder and the Lot, seminar hosted by the Metropolitan Builders Association, Thursday, April 17, 7 p.m., at the Metropolitan Builder's Association office, N16 W23321 Stone Ridge Dr., Waukesha. For more information call (262) 436-1122.
DNR Open House Brownfield Site Assessment Work in the 30th Street Industrial Corridor, Tuesday, April 22, 4-7 p.m., Fitzsimonds Boys and Girls Club cafeteria, 3400 W. North Ave., Milwaukee. For more information, contact Andrew Savagian at (608) 261-6422, Margaret Brunette at (414) 263-8557 or visit the DNR's web site at http://dnr.wi.gov/org/aw/rr/rbrownfields/uri-30th-street.htm.
NAIOP Wisconsin Chapter Meeting with a building tour of the Northwestern Mutual Franklin Campus, 4:30-6:30 pm., Tuesday, April 22. For more information call (262) 522-6375.
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.
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.
CCIM Golf Outing, Monday, June 23, Oconomowoc Golf Club, 5261 Brown St., Oconomowoc. Call (414) 271-2021 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.
CARW Golf Outing, Monday, Aug. 25, North Shore Country Club, 3100 W. Country Club Dr., Mequon. Call (414) 271-2021 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.
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.
More real estate news
Real estate resources
- Building Owners and Managers Association
- Certified Commercial Investment Members
- Commercial Association of Realtors Wisconsin
- CoStar Group
- Emporis Buildings
- Institute of Real Estate Management
- International Council of Shopping Centers
- Kenosha County property info
- LoopNet
- Menomonee Valley Partners
- Milwaukee Department of City Development
- Milwaukee property info
- National Association of Industrial and Office Properties
- Society of Industrial and Office Realtors
- Waukesha County property info
- Wisconsin Commercial Real Estate Women
- Wisconsin Development
- Xceligent
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.



