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Real Estate Weekly

Wednesday, June 30, 2010

Von Briesen CEO says firm will probably relocate

Von Briesen & Roper S.C., which announced last year that it is in the market for more office space, most likely will move to a new or existing building in downtown Milwaukee, according to the firm’s president and chief executive officer, Randall Crocker.
The firm is currently located at 411 E. Wisconsin Ave., and occupies about 65,000 square feet of space. It is seeking about 75,000 square feet of space with an option to grow into additional space in the future.
The firm is considering proposals from several developers that want to build new office buildings and from the owners of several existing office buildings.
But the firm is not involved in negotiations with its current landlord, Santa Ana, Calif.-based Triple Net Properties LLC, Crocker said.
“We’re not actively engaged in negotiations with our current building,” Crocker said. “It’s not real high on my priority list.”
Von Briesen plans to make a decision on its future office space plans by the end of the third quarter, Crocker said. The company’s lease at 411 E. Wisconsin Ave. expires in mid 2013.
In the last decade several downtown Milwaukee law firms have entered the office market and considered relocations, only to negotiate lease renewals in their existing buildings. The one exception is Whyte Hirschboeck Dudek, which moved from the Chase Tower to Cathedral Place in 2003.
But Crocker said it is unlikely Von Briesen will remain at 411 E. Wisconsin Ave.
“I don’t see that as a likely alternative,” he said. “(However) I’m never going to say never, or always.”
One of the reasons that Von Briesen wants to relocate is that the 411 E. Wisconsin Ave. building is also the home of one of the firm’s competitors, Quarles & Brady LLP, which has a large sign on top of the building.
Several developers are working on proposed downtown office building projects. Von Briesen could be an anchor tenant for one of those projects. The firm is very interested in occupying a new building, if a developer can successfully pull of a project, Crocker said.
“I do think Milwaukee is ready for a new (downtown office) tower and we hope to be a part of it,” he said.
Von Briesen prides itself on having a tech savy, modern, contemporary image and would like to be in an office space that reflects that image, Crocker said.
But that doesn’t necessary mean a new building. The firm is also considering attractive proposals from existing buildings, Crocker said.
However, the vacancy rate for class A office space in downtown Milwaukee is at about 8.5 percent, according to industry experts, so there are a limited number of options in existing buildings for Von Briesen.
Some tenants in the downtown Milwaukee market are only interested in being located in the heart of the central business district. But Von Briesen is also interested in the Park East corridor area, Crocker said, which could be good news for Rainier Properties LLC and its project at the northwest corner of Water Street and Knapp Street, which would include office space and a Marcus Theatres movie theater complex.

New downtown plan proposes redevelopment of bus transit center site

A proposal to relocate the Milwaukee County Transit System’s downtown bus transit center from its current location near the lakefront to a site near the Intermodal Station so that the bus transit center site can be redeveloped is a key recommendation in the new downtown Milwaukee master plan, which will be unveiled today.
The proposal is just one of several recommendations in the new downtown master plan, which city officials will unveil today during an open house at City Hall, 200 E. Wells St., from 4-7 p.m. Short presentations about the downtown plan will be made at 4:30 p.m. and 6:30 p.m.
The new downtown plan is an update of the original plan created in 1999. Several of the catalytic projects from the 1999 plan have been completed, or partially completed, including: the Milwaukee Public Market, Pabst brewery re-development, Wisconsin Avenue streetscaping, riverwalk expansion, Park East freeway replacement, two-way street conversions and renovation of the train station.
One of the most noteworthy recommendations in the new downtown master plan calls for the relocation of the Milwaukee County Transit Systems downtown bus transit center from its current location at the southwest corner of East Michigan Street and North Lincoln Memorial Drive to a site near the Intermodal Station, which is located at 433 W. Saint Paul Ave.
The new downtown plan recommends that the downtown bus transit center site should be redeveloped, “vertically above the transit center site with a single or mix of uses with a public plaza or public wintergarden occupying the ground floor and terracing down to Lincoln Memorial Drive.”
A similar development should be encouraged for the southern portion of the O’Donnell Park parking structure, which is located on the block immediately to the north of the bus transit center site. Last week a large concrete slab fell off the parking structure, killing a 15-year-old boy and injuring two others.
Redeveloping the Downtown Transit Center and O’Donnell Park sites could improve the downtown’s connection to the lakefront, the new downtown plan states.
“The O’Donnell Park garage could be improved with modifications to the south of the existing structure, whereas the Downtown Transit Center would need significant changes or complete removal to improve this negative pedestrian condition at such a premier site,” the plan states. “If Milwaukee wishes to elevate itself and its image into a more favorable and competitive level in terms of place-making and overall urban design, a better connected, pedestrian friendly lakefront area needs to be realized and improved upon from its current design; good and functional, yes, but still somewhat under-utilized. In short, Milwaukee’s lakefront is well-developed and successful but the pieces are in place to make it truly grand.”
Other recommendations in the downtown plan include:
- If a multi-purpose venue is built to replace the Bradley Center it should be build somewhere between McKinley Avenue and Kilbourn Avenue and between 4th Street and 6th Street.
- The architecture of a new arena should avoid large blank walls and dark facades that close the facility off from its surroundings.
- Redesign the Lake Interchange (where I-794 turns near Lincoln Memorial Drive and Clybourn Street) to remove the barrier between the area around the Milwaukee Art Museum and the Third Ward. “Consider the descending leg of the Hoan Bridge to meet a descending I-794 expressway at an at-grade point to best achieve this connection and at the same time create a dramatic gateway into the lakefront, much like the 6th Street viaduct bridge suspensions signal an entrance to the Menomonee Valley and Milwaukee’s near south side,” the plan states.
- Redevelop the U.S. Postal Service facility on St. Paul Avenue with uses that complement the Intermodal Station such as multi-story, mixed-use development including office, residential, hotel, retail, entertainment and parking. The downtown bus transit center relocation could also be integrated into the site.
- The vacant site north of St. Paul Avenue between 5th Street and 6th Street is best suited for a multi-story building supporting the Intermodal State with active ground floor uses such as a restaurant or stores. The site could also include the re-located downtown bus transit center.
- Redevelop the vacant site at 4th Street and Wisconsin Avenue with a hotel, residential or large scale retail uses.
- Consider establishing the southern portion of the 4th Street and Wisconsin Avenue parcel as part of a transit oriented neighborhood focused around Zeidler Square and the Intermodal Station.
- Establish a program for more aggressive retail storefront improvements in a focused area along Wisconsin Avenue between 4th and Milwaukee Streets.
- Strengthen the connections between downtown and Third Ward by making improvements to Broadway.
- Encourage redevelopment of the Milwaukee Athletic Club parking garage site at Milwaukee and Wells streets.
- Build a pedestrian bridge to connect the Harley-Davidson Museum and the future University of Wisconsin-Milwaukee School of Freshwater Science building with the Intermodal Station.
- Connect Kilbourn Avenue to 7th Street (James Lovell Street) following the existing grade.
- Vacant lot southeast of Michigan Street and 8th Street could be the catalyst for a new library district neighborhood.
- Encourage additional buildings along the Milwaukee River at Schlitz Park.
- To the west of the Milwaukee River, the Park East corridor should consist primarily of higher density, multi-story residential uses. Hotels and accessory retail uses would also be acceptable.
- To the east of the Milwaukee River, the Park East corridor should consist primarily of office and residential with supporting retail or entertainment.
- Major destination retail venues should be avoided in the Park East area and instead should be directed toward the center of downtown, such as the vacant lot at 4th Street and Wisconsin Avenue.
- Discourage future industrial, warehousing and storage uses in the Haymarket area.
- An open-air bier garten should be considered at Pere Marquette Park during warm weather months.
The downtown plan also lists several catalytic projects for downtown that city officials should work to accomplish:
- A retail or leisure-oriented mixed-use complex at Broadway and Michigan Streets to improve the connection between downtown and the Third Ward.
- A lakefront cultural park and gateway facilitated by a reconfigured lakefront traffic pattern.
- Establish Station Plaza incorporating an expanded Intermodal Station and links a new streetcar network with intercity rail and intra-region bus services.
- Encourage the creation of Pere Marquette Square, a mixed-use complex focusing upon the Journal Sentinel block and Pere Marquette Park with extensions along 4th Street and Kilbourn Ave.
- Extend Kilbroun Avenue to create a two-block development site on the easternmost portion of MacArthur Square.
- Improvement of Wisconsin Avenue.
- Downtown streetcar system.
- Encourage the creation of Haymarket Square, a central place for a mixed-use neighborhood of incubator businesses, live/work housing, low-scale townhouses and six-flat walkup buildings with private yards.

Associated Bank leases another 25,000 square feet at Plaza East

Green Bay-based Associated Banc-Corp, the corporate parent of Associated Bank, has signed a lease for an additional 25,000 square feet of space at the Plaza East office complex, 330 E. Kilbourn Ave., in downtown Milwaukee.
The bank currently leases 30,000 square feet in Plaza East. When it completes its expansion, Associated will lease about 55,000 square feet in the building.
The bank plans to move its commercial lending team, which now resides across the street at 401 E. Kilbourn Ave. where the bank has a branch location. The branch will remain, and the commercial lending team will move to Plaza East next June, after Associated’s lease expires for the upper floors of the building.
About 100 workers will move into the newly leased space, a bank spokesperson said, allowing commercial lenders to work in closer proximity to credit officers and other support personnel.

Aurora to open Grafton hospital on Nov. 1

Aurora Health Care announced that it will open its new Grafton hospital on Nov. 1.
The 520,000-square-foot building is under construction northwest of I-43 and Highway 60. It will have 107 beds. About 600 people will work at the hospital.
Milwaukee-based Aurora says the Grafton hospital will provide integrated care for residents throughout the greater Ozaukee County area.
“More than half of the residents of Grafton and the many surrounding communities are already choosing Aurora for their health care,” said Len Wilk, chief administrative officer of Aurora Medical Center in Grafton.
“Hundreds of Aurora Health Care and Aurora Advanced Healthcare doctors are now caring for the community’s outpatient needs and soon our patients will have the benefit of coordinated inpatient care,” said Bill Ebinger, an internal medicine physician in Grafton and member of the Advanced Healthcare Board of Directors.

Student apartment building planned near MU

Wisconsin Avenue Properties I LLC plans to build an 8-story building at the southeast corner of Wisconsin Avenue and 20th Street, near the Marquette University campus, with 150 student apartment units and 3,200 square feet of first floor retail space. The building will have 191,700 square feet of space, including a 25,300-square-foot basement with parking spaces.
Of the 150 apartment units, 30 will be four-bedroom rooming units and another 60 could be used as rooming units and will be sized to house up to four students, but will be leased to 2-4 students, depending upon student preference.
The building will have 15 full time employees and 11 part time employees.

Parking structure planned next to Knickerbocker On The Lake

A 19-foot stall, 7 half-level parking structure has been proposed next to Knickerbocker On The Lake at 1028 E. Juneau Ave., Milwaukee. Knickerbocker On The Lake is an 8-story condominium building, with about 12 units that are used as hotel rooms. The building also contains the Osteria del Mondo and The Knick restaurants. The parking strucutrre will provide triple the amount of parking spaces that the parking lot it would be built on has currently. The architect for the project is Milwaukee-based Engberg Anderson Inc.

Groundbreaking today for veterans apartments

A groundbreaking ceremony will be held today to celebrate the start of construction for Veterans Manor, a 52-unit, 4-story veterans apartment building that will be constructed at North 35th Street and Wisconsin Avenue.
The Center for Veterans Issues is working with Cardinal Capital Management on the development.
The apartments will be on the building’s upper three floors.
The first floor will be split, with tenant amenities and building operations occupying one half and the other half will be available for commercial lease.

Humboldt Bridge to reopen today

The long project to rebuild the Humboldt Avenue Bridge over the Milwaukee River in Milwaukee will finally be complete for the bridge to reopen on June 30, said Department of Public Works spokeswoman Cecilia Gilbert.
The $8.5 million project started in October of 2008. It was originally supposed to be completed by November of 2009, but the project was delayed because of unanticipated soil conditions that required a redesign of the bridge and wall foundations, Gilbert said.
The general contractor for the project was Black River Falls-based Lunda Construction Company.
The closure of the bridge created a hardship for some businesses in the area, because the bridge made it harder to access the area and some businesses saw customer traffic decline dramatically during the project. Two restaurants near the bridge, Good Life at 1935 N. Water St. and Bayou at 2060 N. Humboldt Ave., closed during the project.

Arboretum project begins

An event Tuesday celebrated the start of work to create the Milwaukee Rotary Centennial Arboretum, which is expected to open in 2013.
The arboretum, a project of the Rotary Club of Milwaukee, will be a 40-acre natural area along the Milwaukee River from North Avenue to Locust Street, stretching upward through Riverside Park. It will be bounded on the west by the Milwaukee River and the east by the Oak Leaf Trail. Wheelchair accessible trails - 3.5 miles in all - will run through the area, connecting the river trails to the community.
To create the arboretum more than 1,000 trees will be planted, replacing gravel and brush that now consume the property. The first tree was planted at the event on Tuesday.

 

 

State Farm renews Executive Drive lease

State Farm Insurance recently renewed its lease of 35,447 square feet of office space at 245 S. Executive Dr., Brookfield, from Malvern, Penn.-based Liberty Property Trust.
“During the last few months we have experienced a marked shift in leasing,” said Neal Driscoll, vice president of Liberty Property Trust. “Downsizing activity has lessened dramatically and inquiries for space are up. Tenants such as State Farm are maintaining space requirements while others are inquiring about expansion opportunities for next year.”
The 245 S. Executive Drive building has a total of 72,000 square feet of office space, and it has an occupancy rate of 95 percent. Other tenants in the building include Ottawa University, Lepoidevin Group and Apex Systems.

Leases

Judson & Associates

  • Kinex Medical Company LLC leased 10,821 square feet of space at 1801 Airport Road, Waukesha, from Sky View Suites LLC.
  • KC’s Inflatables leased 3,240 square feet of space at S84 W18693 Enterprise Dr., Muskego, from Hiram Miller.
  • Care Health Center (Dr. Kurt Simons) leased 2,844 square feet of space at N53 W24950 S. Corporate Circle, Sussex, from KJ Development LLC.

Siegel-Gallagher

  • Law Offices of Whitten and DuSell leased 1,093 square feet of office space in the Forum Building at 3333 N. Mayfair Road, Wauwatosa. From Universal Realty Group.

Towne Investments

  • Herzing University leased 5,800 square feet of office space at 633 W. Wisconsin Ave., Milwaukee.

Sales

Judson & Associates

  • Zarate #3 LLC purchased 20,000 square feet of space at 9155 W. Bluemound Road, Milwaukee, from Carey Balistreri.

New construction

A 6,000-square-foot interior alteration project was recently completed for Santarelli Oral Surgery in Kenosha. Racine-based Bukacek Construction was the general contractor and Elm Grove-based TWP Architecture was the architect.

Real estate people

Brookfield-based Shorewest Realtors recently added Sandy Koziol as a sales associate in its Grafton office, Jorge Barquero as a sales associate in its Kenosha office Rimma Propp as a sales associate in its Delavan office.

Real estate events

July 15:  NAIOP Fiesta Boat Cruise, 5-7 p.m. on the Edelweiss II, departing from the Port of Call Bistro, 106 W. Wells St., Milwaukee. Go to www.naiop-wi.org for more information.

July 22:  NAIOP Webinar: FDIC Asset Disposition Programs; 11:45 a.m. – 1:15 p.m., Wipfli LLP, 10000 Innovation Dr., Wauwatosa. Go to www.naiop-wi.org for more information.

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

Wisconsin Commercial Real Estate Women (WCREW) golf outing, Tuesday, Aug. 3, Broadlands Golf Club, North Prairie. For more information call (414) 545-8500.

SIOR Golf Outing, Friday, Aug. 6, 11 a.m., Blackwolf Run, Kohler. For more information, call (414) 333-2974.

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.


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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