Milwaukee attorney Robert Levine, his son Michael Levine and a group of investors are working on plans to build a 6-story office building on the block southeast of Wisconsin Avenue and Broadway in downtown Milwaukee.
Michael Levine is also an attorney and is the owner of Next Generation Real Estate Inc., which is the developer for the project.
Current plans for the $35 million project includes 130,000 square feet of office space, 17,000 square feet of first floor retail space and 270 structured parking spaces. The developers say the building would have environmentally-friendly “green” features and a fitness center.
Robert Levine proposed a larger office development for the site several years ago, but that project never materialized.
The developers will need to secure an anchor office tenant to get financing for the project.
Several potential anchor tenants are in the market for office space and could anchor a new downtown building including: Von Briesen & Roper S.C. (seeking about 75,000 square feet), Godfrey & Kahn S.C. (seeking about 90,000 square feet), Baker Tilly and CH2M HILL.
The Levines declined to say which potential tenants they are talking to, but said they are talking to tenants interested in their project.
“We’re in talks with several of the names that are out there,” said Michael Levine. “I think if we land any one of those tenants we’re good to go.”
However, the most difficult aspect of the project for the developers could be convincing city officials to allow them to demolish four historic buildings on the block to make way for a new building. They plan to seek a yet to be determined amount of tax incremental financing (TIF) for the project, Michael Levine said.
On the block, about 90 percent of the buildings along Wisconsin Avenue would be demolished to make way for the new building, Michael Levine said, with only the Johnson Bank building remaining. About 60 percent of the buildings on the block along Broadway would be demolished, he said. The buildings along Michigan Avenue would remain and 95 percent of the buildings along Milwaukee Avenue would remain.
The buildings the developers want to demolish are well over 100 years old. They are in poor condition, have been altered significantly from their original appearance and are mostly vacant, Michael Levine said.
“Their lifecycle has come to an end, unfortunately,” he said.
The buildings lack the historical significance of the nearby Mitchell and Mackie buildings and are not worth saving, Robert Levine said.
“I’m a believer in historic buildings, if they have significance,” he said.
Some historic preservationists want the developers to preserve the historic facades of the buildings but that would be a “huge challenge,” Michael Levine said.
Some of the few tenants that are in the buildings include the Ethiopian Village restaurant, 307 E. Wisconsin Ave., and Downtown Books, 327 E. Wisconsin Ave.
Wisconsin Avenue has had numerous retail space vacancies for years and the problem has only gotten worse from the Great Recession.
A new building would have a better chance to attract retail tenants the Levines said, and would provide a boost to revitalize the area.
“That area needs something,” Robert Levine said. “There has to be a shot in the arm over there. East Wisconsin Avenue is a disaster. There are so many vacancies. It’s a block that needs work.”
A new building on the block could also help enhance Broadway as a gateway from downtown into the Third Ward, Robert Levine said.
The proposed 6-story height of the building will allow it to fit in with the historic buildings that will remain on the block, such as the Johnson Bank building, Michael Levine said.
“We’re respecting our neighbors,” he said.
The proposed building is also smaller than many of the other office buildings that developers are proposing downtown, which makes their project more realistic, Michael Levine said. By comparison, Rainier Properties LLC’s proposed Park East corridor development would have 280,000 square feet of office space in addition to a Marcus Theatres movie theater complex. That project would have an additional 110,000 square feet of office space to fill than the Levine project.
"I scaled down the size of my project," Michael Levine said. "There aren't any 200,000-square-foot tenants out there. But there are 60,000 to 100,000-square-foot tenants out there."

A groundbreaking ceremony will be held on Friday, March 5 to celebrate the start of construction for a 5-story, 115,000-square-foot Marquette University engineering building on the south side of Wisconsin Avenue between 16th and 17th Streets, on the MU campus in Milwaukee.

The building, which is being designed and built by Opus North Corp., is expected to be complete by August of 2011. It will have several laboratories, common areas for students and office space.
The $35 million building is the first phase of a $100 million, 250,000-square-foot Discovery Learning Complex.
“This new facility will foster the development of the skills we need in the 21st century – innovative thinking, creative problem solving of real world issues, and experience in team dynamics,” said Rev. Robert A. Wild, S.J., president of Marquette University.
MU has raised $70 million in cash and long-term pledges for the project and is fundraising for an additional $50 million in cash so the entire Discovery Learning Complex can be completed as soon as possible, said Dean of Engineering Stan Jaskolski. “The time is now to innovate,” he said. “This facility, a gift to the Milwaukee community, will focus on building an enhanced workforce for Milwaukee, Wisconsin and the United States -- graduates who know and understand engineering innovation and how to quickly embed the appropriate innovation in products the marketplace desires. Our students and faculty will work with local industries and businesses in the development and design of innovative, real-world products, processes and services. In addition, this showcase facility will inspire elementary, middle and high school students to consider engineering careers as they participate in hands-on, exciting projects and innovative discoveries.”

Clysmic Properties LLC plans to build a 4-story residence hall for Carroll University students, with 11,000 square feet of first floor retail space, northwest of Grand and College avenues in Waukesha.
A strip mall on the site will be demolished to make way for the new building. The new building will be built along Grand Avenue and will be located adjacent to a four-story residence hall that Clysmic built last year along College Avenue.
The company leases the residence hall along College Avenue to the university, and plans to do the same thing with the proposed building along Grand Avenue.

A groundbreaking ceremony will be held on Thursday, Feb. 25, to celebrate the start of construction for King Drive Commons III at 2775 N. Dr. Martin Luther King Jr. Dr., Milwaukee.
King Drive Commons III will be a 24-unit affordable housing building with 2,000 square feet of first floor retail space.
Through the federal stimulus act the Wisconsin Housing and Economic Development Authority (WHEDA) is providing $4.8 million in low income housing tax credits and $500,000 in financing for the project.
The developer for the project is Martin Luther King Economic Development Corp.
“There has been an overwhelmingly positive response to the King Drive Commons housing developments throughout this community, so we’re very excited to partner on this third phase,” said WHEDA executive director Antonio Riley. “The revitalization of this historic neighborhood over the past decade has been remarkable, and MLK Economic Development Corp and Harambee Great Neighborhood Initiative deserve high praise for their efforts to improve both housing and employment options for area residents.”
Since 2003, WHEDA’s investment in all three phases of King Drive Commons totals over $18 million in tax credits and financing.
King Drive Commons III will consist of two and three bedroom units with rent ranging from $595 to $857 per month. The low-income apartment complex will also feature 2,000 sq. feet of ground floor commercial or community space.
King Drive Commons I, completed in 2005, is a mixed-use building with 18 apartments and 6,500 square feet of commercial space. King Drive Commons II, completed in 2008, features a mixed-use building with nine apartments along with 15 scattered home sites along N. 4th Street, N. 2nd Street and W. Hadley Street. Both mixed-use buildings are located on the 2700 block of N. Dr. Martin Luther King Jr. Drive.

Austin-Texas-based Golfsmith International Holdings Inc. announced it will open its first Golfsmith Wisconsin store in Brookfield.
The new store will be located on Bluemound Road across from Brookfield Square Shopping Center next to a former Circuit Store and the Storms driving range.
The new store will span 25,000 square feet and will include an indoor driving range and custom fitting studios. The store is planned to open by June 2010.
The growing golf retail chain also will open a new store in Brea, Calif.
"We are very excited about these two new locations that will both open this spring," said Marty Hanaka, president and CEO of Golfsmith. "We are very proud to bring our golf retail concept to Milwaukee where we believe golfers deserve an inspiring golf retail experience, and our Brea store location helps us continue to fill out the Los Angeles market. This is just another step in continuing to execute our strategy and continue to grow our market share."
Golfsmith International Holdings is a 42-year-old specialty retailer of golf and tennis equipment, apparel and accessories. The company operates more than 70 stores across the United States.

Falls Commerce Center I and II sold
Sterling Investments LLC recently purchased the Falls Commerce Center I and Falls Commerce Center II buildings, located southwest of Silver Spring Drive and Lilly Road in Menomonee Falls, from Brookfield Real Estate Opportunity Fund for $2.35 million. NAI MLG Commercial brokers Curt Pitzen and Adam Matson represented Brookfield Real Estate Opportunity Fund and Mark Peltin represented Sterling Investments in brokering the sale. Sterling Investments LLC was formed by the owners of Sterling Commerce Group Inc., a tenant in Falls Commerce Center.
“We took over the brokerage of this property three and a half years ago and brought it to its highest occupancy rate in the last 10 years,” Matson said. “We put in Sterling Satellites, and their business has continued to grow. They were in the process of more than doubling their space needs and felt ownership was the most beneficial path to take.”

General Beverage Sales moving to New Berlin
General Beverage Sales Co. Inc. and GB Sales Co. Inc. plans to move operations from West Allis to 60,550 square feet of space that it is leasing in the Towne-Luterbach I building at 16055 W. Stratton Dr., New Berlin, from a joint venture of Towne Investments and James T. Luterbach. The lease deal was brokered by Tom Bernacchi and Michael Kleber of Towne Investments. General Beverage Sales will use the facility as a distribution center.

Boerke Company

• Global Industrial LLC leased 15,820 square feet of industrial space at 281 Commerce St., Belgium, from Bourne LLC.

• Reserve Advisors leased 4,586 square feet of office space at 205 E. Wisconsin Ave., Milwaukee, from BC 205 Wisconsin LLC.

• Medtronic USA Inc. leased 2,966 square feet of office space in Crossroads VII B at 20935 Swenson Dr., Waukesha, from Liberty Property Limited Partnership.

Colliers Barry

• Maddison Automotive Inc. leased the 11,651-square-foot former Just Oak and More building at 210 West Wales Road, Wales, from Kim’s Real Estate LLC. Maddison Automotive will open a new auto repair business in the building.

Inland Companies

• Sterling Engineering leased 800 square feet of office space at Executive Center III located at 125 N. Executive Drive in Brookfield.

Boerke Company

• Continental 202 Fund LLC purchased the 94,500-square-foot former Sears Grand building at N77 W14435 Appleton Ave., Menomonee Falls, from THEA-M LLC. A Pick ‘n Save store will be located in the building.

• Continental 202 Fund LLC purchased 11 acres at N77 W14435 Appleton Ave., Menomonee Falls, from Masy Mohrhagen Dittings Living Trust.

City issues RFP for former Finney Library
The City of Milwaukee recently issued a request for proposals (RFP) seeking developers interested in purchasing and redeveloping the former Finney Library building at 4243 W. North Ave. The 9,000-square-foot building is located on a 28,900-square-foot lot at the southeast corner of North Avenue and Sherman Boulevard. Responses to the RFP are due on March 22. More information is available at: http://www.mkedcd.org/realestate/Finney/RFP.pdf

Organizing for America open its first Wisconsin office in downtown Milwaukee
Organizing for America opened its first office in Wisconsin recently at 316 N. Milwaukee St. in downtown Milwaukee. 
Organizing for America is a project of the Democratic National Committee committed to building on and strengthening the grassroots network created during the Obama presidential campaign and dedicated to supporting Obama's agenda. 
“I’m so pleased that OFA is opening in Milwaukee so that we can keep working together to move our country forward,” said Rep. Gwen Moore, D-Milwaukee.  
“I am proud to work at the grassroots level to create jobs, expand opportunity and prosperity for families and workers across our state, and fight for a stronger Wisconsin for all of us,” said Milwaukee Mayor Tom Barrett.
“OFA is excited to establish its Wisconsin headquarters in Milwaukee,” said OFA Wisconsin state director Dan Grandone. “Milwaukee is a fitting home to continue our grassroots effort statewide. We will organize to ensure the voices of Wisconsin residents are heard in Washington on important issues like the need for job creation and health insurance reform. OFA's Headquarters will serve as the basis for OFA’s statewide operation in Wisconsin and as a place for trainings, community meetings, local phone banks and canvasses.”

Nominations sought for Mayor’s Design Awards
Milwaukee Mayor Tom Barrett is encouraging people to nominate exceptional buildings, individuals, spaces, or physical improvements in the city for the annual Mayor’s Design Awards.  Now in its thirteenth year, the awards honor aspects of Milwaukee’s built environment that make our city a lively and engaging place.
“Great people and projects are making Milwaukee more beautiful and livable, and I want to honor those efforts,” Barrett said. “The list of past award winners is an impressive compilation of investment and imagination. Let’s get more projects the attention they deserve.”
People can explore the categories and submit nominations for the Mayor’s Design Awards online at www.mkedcd.org/design.  To receive consideration, nominations should be submitted before Wednesday, March 10, 2010.

Wisconsin Mortgage Corp. achieves record year
Wisconsin Mortgage Corp., a division of Brookfield-based Shorewest Realtors, had a record year in 2009 by completing a loan application volume of more than $401 million. Wisconsin Mortgage helped 2,200 families finance home purchases. The corporation also closed their highest volume in company history with more than 70 percent of that being home purchases. “As we enter our 27th year in business we are proud to continue a long tradition of assisting buyers in financing their home purchases,” said vice president John Inzeo. “Our record year in 2009 reflects the commitment of our entire company assisting customers, and providing high quality and common sense advice for financing their home purchases.” Wisconsin Mortgage Corporation has provided home mortgage loans since 1983.

Feb 24:  Commercial Real Estate Government Day in Madison, 8 a.m. – 3 p.m., Madison.  Contact Jim Villa of CARW at (414) 271-2021 or Chris Korjenek of NAIOP at (262) 522-6375 for more information.

Feb 25:  NAIOP Webinar:  New Market Tax Credits to Finance Development. 11:45-1:15, GRAEF USA, 125 S. 84th St., Milwaukee. Register online at www.naiop-wi.org.

REACH (Real Estate Alliance for Charity) Winter Gala, Saturday, Feb. 27, 7:30-10:30 p.m., Milwaukee Public Market, 400 N. Water St., Milwaukee. For more information, call (414) 271-2021.

March 3, AOMA tour – 11:30 am One at North End, 1551 N. Water St.

WCREW Speed Networking event, Tuesday, March 9, 5:30-7:30 p.m., Maders’s German Restaurant (Party Room—Second Floor), 1041 N. Old World 3rd St., Milwaukee.

March 10:  NAIOP Tour of the Aloft Hotel, 4:30-6:30 p.m., Aloft Hotel, 1230 N. Old World Third St., Milwaukee. Register online at www.naiop-wi.org.

March 11:  NAIOP Webinar:  Risk Management Strategies for Successful Real Estate Development Projects. 11:45 a.m.-1:15 p.m., Wipfli LLP, 10000 Innovation Dr., Wauwatosa. Register online at www.naiop-wi.org.

Milwaukee Awards for Neighborhood Development Innovation (MANDI) reception and awards ceremony, Thursday, March 18, 5 p.m., Pfister Hotel, 424 E. Wisconsin Ave., Milwaukee. For more information, call (414) 273-1815.

IREM Annual Spring Seminar: Leasing and Marketing 2010, 8 a.m. to 3:30 p.m., Tuesday, March 23, 2010. For more information, call (414) 476-4736.

March 23, 11:30 a.m.-1 p.m., Wisconsin Commercial Real Estate Women (WCREW) will host a Real Estate Professionals Networking Event featuring professional coach Paula Davis-Laack.  The event will be held at the Iron Horse Hotel, 500 W Florida St., Milwaukee.

March 25: NAIOP Webinar: ROI Analysis on LEED Building Components, 11:45-1:15, Wipfli LLP, 10000 Innovation Dr., Wauwatosa. Register online at www.naiop-wi.org.

CARW Lunch and Learn, Financing and Lending: Where is the money and how do you get your hands on it?, March 29, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Development in 2010: What’s next, April 26, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Legal and Contract Law: Understand the Fine Print, May 17, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Salesmanship and Networking, June 21, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Sustainable Building, July 26, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Title and Deed, Aug. 23, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, State Issues for Fall Election, Sept. 27, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Multi-Family and Investment Properties, Oct. 25, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Industrial: Leasing, Sales and Negotiating, Nov. 15, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

CARW Lunch and Learn, Construction Cost, Dec. 13, 12-2 p.m., CARW office, 12300 W. Center St., Milwaukee.

• Building Owners and Managers Association

• Certified Commercial Investment Members

• Commercial Association of Realtors Wisconsin

• CoStar Group

• DNR brownfield services

• DNR contaminated property database

• 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

• NAIOP

• Reis

• Society of Industrial and Office Realtors

• Waukesha County property info