Huge River House Expansion Advancing

The owners of a 2.87-acre vacant lot along the Milwaukee River are planning to develop a two-building, apartment complex.

River House, 1785 N. Water St., opened in 2017 with 243 apartments spread over two buildings. But an additional two buildings were always planned to the east.

Now, according to a Department of City Development representative, that second phase is moving forward.

The first phase was developed by Georgia-based Atlantic Realty Partners. Atlantic Realty maintained ownership of the second phase site, 1801-1881 N. Water St., even after selling the completed first phase to an affiliate of Weidner Investment Services in 2018 for $58 million.

“They’re looking to move forward with the project as it was approved in 2015,” said DCD economic development specialist Alyssa Remington to members of the Zoning, Neighborhoods & Development Committee on Tuesday morning.

The high-end apartments occupy a site that was long home to A. F. Gallun & Sons tannery. But the slope of the site, with an approximately 40-foot drop down to the river, impeded the property’s redevelopment long after the tannery closed.

Architecture firm HGA and Atlantic Realty ultimately came up with a solution where the front door of the buildings on Water Street is actually on the third floor of each structure. There are two levels of parking below grade when viewed from Water Street, with four floors of apartments above in a U-shaped configuration. When viewed from across the river or along the riverwalk, the structures appear as six-story buildings.

On the inside of the U, the top of the parking structure becomes an amenity area overlooking the river. The western building has an outdoor pool in the space and a resident courtyard with grills and cabanas is located in the other building. Indoor amenity areas, including a club room and fitness center, are included in each building.

The city is poised to provide $700,000 via a tax incremental financing (TIF) district to support a riverwalk extension. It would build on an earlier $3.92 million allocation that was intended to cover both phases. Remington said the additional funding is consistent with city standards that reflect increased construction costs. The riverwalk segment spanning both phases of River House would measure 1,047 feet in length.

The second River House phase will be joined by a separate project to its east, EIGHTEEN87 on Water. That development, backed by low-income housing tax credits, is also progressing. The city will contribute $2.1 million to cover the costs of that 478-foot riverwalk segment, which is more expensive because it is being built higher above the river to more closely align with the street level and the riverwalk segment to its east.

In exchange for a 24-hour public access easement, the city covers 70% of the cost of developing a new riverwalk segment and 50% of dockwall repair or replacement costs. It pays for 100% of the costs of new public access segments that link the riverwalk system to the street.

When both projects are completed, pedestrians would be able to walk along the riverwalk from Swing Park under the Holton Street Viaduct to N. Humboldt Ave. to the east. A sloped path between River House and EIGHTEEN87 that runs from Water Street down to the river would connect the elevated segment with the River House segment closer to the river.

Incremental property tax revenue from both developments and other existing developments in the North Water Street Riverwalk TIF district will pay back debt associated with the riverwalk projects. The district is currently generating excess revenue and DCD is also proposing to use $1.6 million to fund the reconstruction of failing stairs on the riverwalk segment across the river and partially fund a project to rebuild N. Van Buren St. with a protected bike lane and other traffic calming improvements.

The committee unanimously endorsed the proposal. Area Alderman Nik Kovac, who said he was attending two virtual meetings simultaneously, said he was in support. The full council will consider the proposal on March 1.

A representative of Atlantic Realty did not respond to a request for comment by the time of publication.

The vacant lot Atlantic Realty owns is currently assessed for $3.18 million. A representative of the firm previously publicly suggested the firm could partner with Weidner on the second phase.

No permit applications, according to the city’s land management system, have been filed.

A 2015 zoning change for the project permitted all four River House buildings to have a combined maximum of 450 units and a minimum of 650 parking spaces.

For more on the first phase of River House, see our 2017 profile.

2017 River House Interior Photos

2017 River House Exterior Photos

Project Site

2015 Renderings