Work Starting On ThriveOn King Project

Construction work is set to begin on one of Milwaukee’s most-anticipated projects.

“We are thrilled to start construction for ThriveOn King,” said Kevin Newell, CEO of Royal Capital Group, in a statement. “From inception, this project has been a collective effort with the community, and we are excited to bring that collaborative vision to life in this next stage.” A community event is planned for this summer to mark the construction project.

Located in a former department store at 2153 N. Martin Luther King Jr. Dr., the $105 million redevelopment was first announced in March 2019. It will include affordable housing, a new home for the Greater Milwaukee Foundation (GMF) and two floors of office space for the Medical College of Wisconsin (MCW). First-floor tenants include a food hall, Malaika Early Learning Center and a Versiti blood donation and education facility. Royal Capital is the development partner on the project with GMF and MCW.

A partnership of CG Schmidt and JCP Construction will lead the general contracting. Engberg Anderson Architects leads the design.

The work will be completed by November 2023, according to a timeline provided this week by the project team. After the city approved a tax incremental financing district to support the development in November 2019, the project was delayed multiple times and its cost grew by $20 million.

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

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. The property fills almost the entire block bounded by W. Garfield Ave. W. Lloyd St., N. Martin Luther King Jr. Dr. and N. Vel R. Phillips Ave.

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.

Some of the first construction work will include removing those panels. Other work includes asbestos abatement and demolishing the loading docks on the building’s west side. The loading docks space will become a new entryway to the complex.

A parking structure will be constructed on the southwest corner of the block with approximately 315 stalls.

The city is to provide up to $15 million from a developer-financed tax incremental financing (TIF) 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 by the city required construction work to start by Feb. 28 and be substantially complete by June 30, 2023 to access the TIF support.

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. According to city assessment records, the development team paid Coakley $9.4 million for the property in 2020.

In exchange for the city financial support, the project will be required to have 40% of its construction work hours performed by unemployed or underemployed city residents through the Residents Preference Program, as well as spending 25% of its construction and supply budget and 18% of its professional services budget with Small Business Enterprises. It will also need to comply with the Anti-Displacement Neighborhood Preference Policy that sets aside units for area residents experiencing displacement.

Specific apartments units would be set aside for individuals making below 30%, 50%, 60% and 80% of the area median income. Through the low-income housing tax credit program, those rents are capped at 30% of household income for each income threshold. Twenty-seven of the apartments will be set aside for seniors.

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 two weeks ago the Dr. Howard Fuller Collegiate Academy filed for Board of Zoning Appeals approval to demolish the warehouse and build a new structure.

March 2019 Unveiling

2015 Facade Exposure

2019 Renderings and Site Plans

Revised First Floor Renderings