The Blue Building To Become Housing

310 W. Wisconsin Ave. Photo courtesy of Colliers International.

A $73.6 million plan to convert half of one of downtown Milwaukee’s largest office buildings into apartments is poised to receive a city subsidy.

The Department of City Development is proposing to create a new tax incremental financing (TIF) district to provide $6.44 million toward converting the east tower of 310W, 310 W. Wisconsin Ave., into 220 apartments.

The largely vacant office space would be replaced with a mix of studio, one-, two- and three-bedroom apartments. In exchange for the subsidy, 50 of the units would be set aside as workforce housing for households earning between 70% and 90% of the Milwaukee area median income.

The developer-financed TIF district would provide up to $6.44 million, plus interest, over an 18-year period.

The Redevelopment Authority of the City of Milwaukee is scheduled to review the proposal and hold a public hearing on Aug. 20.

“Time Equities acquired this iconic blue office building nearly nine years ago with a vision of investing in the continued revitalization of Westown,” said Brad Gordon, the company’s director of acquisitions, in a statement.

Time Equities purchased the 578,000-square-foot building in 2017 as part of a $30 million renovation project intended to reposition the aging structure as a competitive office property.

But Gordon said the COVID-19 pandemic “fundamentally changed demand for office space,” prompting the company to spend the past four years pursuing an apartment conversion.

“Through the city’s [TIF] program supporting office-to-residential conversions, and in partnership with the city, this project will deliver 220 new apartments, including 50 workforce housing units, while bringing much-needed housing and new economic activity to downtown Milwaukee,” he said.

A preliminary review request filed in March 2025 showed plans by The Kubala Washatko Architects to create 222 apartments. Time Equities did not respond to a request for comment when that request was filed with the city.

Constructed in 1983, the building was originally known as Henry S. Reuss Federal Plaza. The distinctive blue-glass structure is effectively two buildings connected by a 14-story atrium and was initially occupied by several federal agencies.

Many of those agencies eventually departed after security requirements changed following the Sept. 11, 2001, terrorist attacks.

Time Equities acquired the property after years of declining occupancy. By 2019, it was 64% vacant, and the company announced a $30 million modernization effort designed to offer what it called “a Class A experience at a Class B price.”

The company renovated common areas and added amenities, but the improvements were unveiled shortly before the pandemic caused office leasing activity to plummet. The building has also had to compete with newer office properties that offer higher ceilings, more natural light and more conventional floor plates.

The city subsidy would be provided through a new district and is intended to close a financing gap tied to the office-to-residential conversion.

“This proposal represents an important investment in the continued growth of downtown Milwaukee,” said Ald. Robert Bauman, whose district includes the building. “This conversion will bring more residents Downtown, support local businesses and further activate the neighborhood.”

DCD is proposing the district under financing guidelines it unveiled in 2025 to support affordable and workforce housing projects and conversions of underused downtown office buildings.

It would be structured as a developer-financed TIF district, which provides the subsidy only if the incremental property tax revenue generated by the development covers it. The commonly used risk mitigation strategy is an effective property tax rebate.

Mayor Cavalier Johnson said the project would expand the city’s housing supply while returning vacant space to productive use.

“This investment benefits Milwaukee’s long-term economic health by expanding our tax base and ensuring our existing buildings contribute to the city’s future,” he said.

The area around the building has changed substantially since Time Equities announced its office renovation plan in 2019.

The Avenue redevelopment across Wisconsin Avenue has attracted several office tenants and includes the heavily trafficked 3rd Street Market Hall. The Bradley Symphony Center opened one block east, the Baird Center was expanded and Vel R. Phillips Plaza opened nearby. Milwaukee Tool, Enerpac and other companies have also added offices in the surrounding Westown area.

The 310W proposal is one of several office-to-residential conversions planned along Wisconsin Avenue as downtown office vacancy remains elevated.

Construction is underway to redevelop the 35-story 100 East building into 350 apartments. The project was the first to go through the city’s new TIF financing plan. J. Jeffers & Co. is also pursuing a partial conversion of the 20-story office building at 633 W. Wisconsin Ave., with plans for 228 apartments.

DCD Commissioner Lafayette Crump said the 310W proposal reflects the city’s efforts to use tax incremental financing to overcome the substantial costs associated with converting older office buildings.

“The Department of City Development is proud of the work we’ve done to partner with the development community to expand and refine the use of tax incremental financing to help close financing gaps associated with complex redevelopment projects and increase the amount of housing available in Milwaukee across diverse price points,” Crump said.

The 310W property is currently assessed for $22.7 million.

The Common Council must also review the proposed subsidy.

2019 Tour Photos

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