Blood Center Announced As ThriveOn King Tenant

The partners behind the $105 million ThriveOn King development announced a new first-floor tenant this week.

Versiti Blood Center of Wisconsin will operate both a blood donation center and community hub on the first floor of the building, 2153 N. Martin Luther King Jr. Dr. The 501(c)(3) nonprofit organization is leasing 3,500 square feet of space in the complex, formerly a department store.

Versiti will join Malaika Early Learning Center, which was announced in April as the operator of a 14,000-square-foot early childhood education center on the first floor. A food hall targeted at startup vendors is also proposed for the first floor. The Greater Milwaukee Foundation (GMF) and Medical College of Wisconsin (MCW) are anchor tenants in the development and will lease approximately 100,000 square feet of office space.

“Versiti has proudly been part of the Milwaukee community for 75 years. While we have made great strides to address racial disparities in blood and organ donation, we know there is much work yet to do,” said Chris Miskel, Versiti President and CEO, in a statement. “Through advocacy and community outreach, Versiti hopes to further establish itself as a trusted resource and agent of change for the donors and patients we serve.”

According to a press release, Versiti’s ThriveOn location will provide healthcare job training, education about the need for blood donation and a blood donation center targeted at growing the number of minority donors.

“Patients with conditions like sickle cell disease, cancer, lupus or organ failure require frequent blood transfusions. They are more likely to find a match and less likely to have physical reactions to blood or organs donated by donors of the same race,” says Versiti’s announcement. The residents of the neighborhoods surrounding the ThriveOn King development are predominantly Black.

In March, GMF announced a $150,000 grant for Versiti’s work to increase blood donations from diverse communities.

“Versiti’s commitment to health equity and resources for the community aligns with the dedication of ThriveOn Collaboration to make generational investments in the well-being of Milwaukee communities aimed at eliminating racial, health, economic and social disparities,” said MCW vice president Greg Wesley, co-lead of the ThriveOn Collaboration. “Offering new resources and opportunity to the community, based on their feedback and collaboration, is a key goal coming to fruition.”

Versiti’s Wisconsin arm reports providing approximately 230,000 units of blood annually to more than 56 hospitals across 29 counties. The Milwaukee-based organization also operates in Illinois, Indiana, Michigan and Ohio.

Eighty-nine apartments, with 74 set aside at below-market rates, are planned for the upper floors of the 350,000-square-foot complex.

Royal Capital Group is serving as the developer on the complex, which was most recently used as a storage facility.

The city is to provide up to $15 million from a developer-financed tax incremental financing district to support the development. The structure is effectively a property tax rebate if the building hits a minimum assessment threshold and places the risk on the development team. But a November-approved extension required construction work to start by Feb. 28 and be substantially complete by June 30, 2023 to access the TIF support. Substantial construction work is not yet underway on the development, which was first announced in March 2019.

Other funding sources include $48.5 million from commercial loans, $22.5 million from historic preservation tax credits, $9.4 million from low-income housing tax credits, $8.5 million in developer equity and $3.5 million as a deferred developer fee.

Engberg Anderson Architects is serving as the project’s design firm.

The oldest building in the complex was built in 1907 as a home for Schuster’s Department Store and expanded many times. The Gimbels chain acquired Schuster’s in 1961 and operated the store until 1969.

It was used as a warehouse by Gimbels (which eventually went out of business) until 1992, according to city records. It was then acquired by CH Coakley. which used the building for storage and office space. Many of the former department store fixtures, including escalators, can still be found in the building.

Much of the 115-year-old complex’s facade has been clad in metal paneling for almost three decades, hiding the department store’s historic facade. A portion of it was exposed in 2015 to assess its condition, with encouraging results.

A new parking garage would be constructed on the southwest corner of the block with approximately 315 stalls. Loading docks would be demolished along N. Vel R. Phillips Ave. creating a new, open-air entry area.

Included in the original proposal and TIF agreement was a warehouse located across the street from the building at 2212-2228 N. Vel R. Phillips Ave. But project representatives said it could be used by a school in November, and last week the Dr. Howard Fuller Collegiate Academy filed for Board of Zoning Appeals approval to demolish the warehouse and build a new structure.

2015 Facade Exposure

2019 Renderings and Site Plans

Revised First Floor Renderings