Stalled Downtown Apartment Tower Project Could Get New Owner

Idle construction site for Neutral Edison. Photo by Jeramey Jannene.

The unfinished Neutral Edison apartment tower site could soon have a new owner.

Milwaukee County Circuit Court Judge Glenn Yamahiro entered a default judgment Monday in favor of general contractor C.D. Smith, advancing the company’s effort to foreclose on the downtown development site and recover more than $11 million in unpaid construction costs.

The ruling sets the stage for the property, 1005 N. Edison St., to be sold through a foreclosure process. The riverfront site contains a partially completed foundation for what was planned as a 31-story, 353-unit apartment tower.

After walking off the job site in September, C.D. Smith filed the lawsuit in March against developer Neutral and its project affiliates. The Fond du Lac-based contractor alleges it performed approximately $13.67 million in work but was paid only $2.37 million, leaving a balance of approximately $11.3 million, not including interest and attorneys’ fees.

Neutral did not file a legally valid response to the complaint within the deadline established under state law, which led Yamahiro to grant C.D. Smith’s request for a default judgment.

Neutral CEO Nate Helbach previously filed a motion arguing that the dispute should be handled outside of court. Helbach cited provisions in the general contract calling for mediation or arbitration before litigation.

But Helbach is not an attorney and cannot represent a limited liability company in court. Yamahiro struck the filing. Neither Helbach nor an attorney representing Neutral appeared at Monday’s hearing.

C.D. Smith’s attorney, Benjamin Prinsen of Kravit, Hovel & Krawczyk, is expected to submit updated documents supporting a monetary judgment and foreclosure order. The filing is expected to account for the resolution of some claims involving subcontractors. The judge must still sign a written foreclosure order before the property can proceed toward a sale.

Should C.D. Smith gain control of the site, the construction company could sell it to another developer or pursue an alternative resolution for the stalled project.

The ruling marks the latest setback for a development that was once billed as a landmark addition to Milwaukee’s skyline.

Neutral began construction in spring 2025 and held a groundbreaking ceremony that June. The approximately $205 million project was promoted as a plan to create the tallest mass timber building in the Western Hemisphere.

But work stopped in September after only a few months. Neutral initially described the shutdown as a temporary pause intended to allow the development team to address inflation, tariffs and other cost pressures.

City officials later said the project was facing a funding gap of approximately $25 million. Its projected cost had reportedly grown to at least $230 million.

C.D. Smith and other contractors removed their equipment in the ensuing months. A partially built foundation and other early improvements remain on the property overlooking the Milwaukee River.

The general contractor filed a construction lien and its foreclosure lawsuit.

The dispute is part of more than $14 million in claims filed by contractors connected to the Edison project. Neutral has also been working through debts and legal claims tied to its Madison development, which was sold for $37 million, approximately half its reported development cost.

Despite the legal and financial problems, city administration officials previously said there could still be a path to developing the Edison property.

Department of City Development Commissioner Lafayette Crump told Common Council members in April that Neutral had been speaking with prospective partners and exploring options that could include redesigning the building, bringing in another developer or converting the proposal to workforce housing.

Such a project could target tenants earning up to 100% of the Milwaukee area median income, rather than the luxury market originally envisioned for the tower. The city, as of April 2025, agreed to subsidize workforce housing developments.

The city provided no direct financing for the current Edison project, limiting its leverage over the privately funded development.

Neutral has also fallen behind on property taxes for the site. Ald. Robert Bauman previously suggested the city explore tax foreclosure as a means of gaining control of the property and resolving the contractor liens, though other city officials questioned whether that strategy was practical.

The C.D. Smith foreclosure case could now determine the property’s future before the city’s tax collection process advances that far.

Neutral could attempt to reopen the case, but it would need to retain an attorney and persuade the court to set aside the default judgment.

November 2025 Tower Crane Removal Photos

123►

Renderings

Existing members must be signed in to see the interactive map. Sign in.