John Menard gave $1.5 million to conservative group tied to Scott Walker

downtown river frontage, I-94 access and City Hall itself

Lucky Ginger prepares to open in Third Ward

Railway Exchange Building

Plan advances to convert ‘Mural of Peace’ building into apartments

A developer’s $7.3 million proposal to buy a well-known Walker’s Point office building from the City of Milwaukee and convert it into high-end apartments has been recommended for approval. The four-story, 76,350-square-foot building, at 611 W. National Ave., would be sold for $1.3 million to an affiliate of Oshkosh-based Northpointe Holding LLC. Northpointe plans to renovate the first-floor commercial space, and convert the three upper floors into 36 apartments, co-owner Cal Schultz said. The renovated building, known as Mercantile Lofts, would feature two- and three-bedroom units with large windows, high ceilings and stainless steel appliances, Schultz said. Monthly rents would start at $950, he said. If approved by the Common Council, the renovations would begin this summer and take about a year to complete. The council’s Zoning, Neighborhoods and Development Committee on Tuesday unanimously endorsed the building’s sale. The building was owned by Esperanza Unida Inc., a nonprofit group that provides job training programs, until Jan. 5. The city took control of the property through foreclosure proceedings against the financially troubled organization, which owed more than $2 million in unpaid bills — including around $250,000 in back property taxes, said Gregg Hagopian, assistant city attorney. Liens on the property prevented Esperanza Unida from selling the property, Hagopian told committee members. The city’s foreclosure action wiped out those liens, allowing a sale, he said. Other lien holders included the Internal Revenue Service, state Department of Workforce Development, BMO Harris Bank and We Energies. Keypointe was one of three developers that submitted proposals to buy and redevelop the property. About $700,000 of the sale proceeds would go to the U.S. Economic Development Administration, which in 1994 provided a grant to help finance Esperanza Unida’s renovations of the building, a former factory. Other sale proceeds would cover the overdue property taxes and the city’s costs for operating the building before it’s sold to Northpointe, said Martha Brown, deputy development commissioner. The building has housed a restaurant, child care center and other businesses, along with Esperanza Unida’s offices. But building code violations forced most of the businesses to move out. The building is know for its “Mural of Peace,” by Milwaukee artist Reynaldo Hernandez, which can be seen by northbound drivers on I-43. The sale agreement requires Keypointe to minimize its disturbance of the mural if it adds windows to that side of the building.

Plan Calls for Upscale Apartments at International Building on National Ave.

A well-known Walker’s Point office building recently acquired by the City of Milwaukee would be sold to investors for conversion into apartments, under a new proposal. The four-story, 76,350-square-foot building, at 611 W. National Ave., would be sold for $1.3 million to 611 West National Avenue Milwaukee, LLC, which is controlled by Northpointe Holding LLC, according to a Department of City Development report. Northpointe is owned by Callan Schultz, president of Keystone Development, and Andrew Dumke, owner of Alliance Development, both based in Oshkosh. Northpointe and Keystone own apartments buildings totaling 1,700 apartment units in Wisconsin, Michigan and Ohio, and have another 333 units under construction, the report said. They new owners plan to renovate the building’s first-floor commercial space, and convert the three upper floors into 36 two-bedroom and three-bedroom apartments, the report said. That work, including a new roof, would begin within 60 days of the building’s sale, and take 10 months to complete. The apartments would include stainless steel appliances, granite countertops, European cabinets and two full bathrooms, the report said. The development would include 54 surface parking spaces, including 41 spaces on an adjacent lot owned by Milwaukee County. The $6 million of renovations would be financed in part with federal and state historic preservation tax credits, and a Wisconsin Housing and Economic Development Authority loan. The authority loan would require that 20% of the apartments be set aside for people earning no more than 80% of Milwaukee County’s median income. The Common Council’s Zoning, Neighborhoods and Development Committee is to consider a sale agreement at its Tuesday meeting. Known as the International Building, its “Mural of Peace,” by Milwaukee artist Reynaldo Hernandez, can be seen by northbound drivers on I-43. The sale agreement would include a requirement that any new windows must be added in a way that “substantially blend into, and minimize disturbance of, the existing mural,” the report said. The building was owned by Esperanza Unida Inc., a nonprofit group that provides job training programs, until December. The city took control of the property through foreclosure proceedings against the financially troubled organization, which owed $231,561 in property taxes on its building, including $155,000 in back taxes for 2011 and 2012. The International Building has housed a restaurant, child care center and other businesses, along with Esperanza Unida’s offices. But building code violations forced most of the businesses to move out. About $700,000 of the sale proceeds would go to the U.S. Economic Development Administration, said Jeff Fleming, development department spokesman. The agency provided a grant to help finance Esperanza Unida’s purchase of the building.

Oshkosh developer pitches apartments for National Avenue building

A buyer has emerged with plans to convert the foreclosed former Esperanza Unida Inc. building in Milwaukee into 36 apartments. The city in December put the building at 611 W. National Ave. up for sale. It is involved in a tax foreclosure lawsuit. Keystone Development and affiliate Northpointe Holding LLC, both from Oshkosh. want to buy it for $1.3 million and do a $6 million renovation, according to a city report. The project would reserve the first floor for commercial space, but convert the upper three floors into 36 two- and three-bedroom apartments. The project would use state housing financing, so 20 percent of the apartments would be reserved for families with incomes worth less than 80 percent of the county median. Keystone Development has done several Milwaukee-area projects that used state affordable housing tax credits. In this case, it would get financing from the Wisconsin Housing and Economic Development Authority and would seek historic restoration tax credits. The sale proposal still must be reviewed by city elected officials.

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Trocadero changes ownership

Effective today, Trocadero Gastrobar, 1758 N. Water St., has changed ownership, moving from the Lowlands Group portfolio to the ownership group of its newly opened neighbors, Red Lion Pub. The new managing partners include JJ Kovacovich – a bar manager at Trocadero from 2005 to ’07 – and Drew Deuster of Red Rock Saloon, McGillycuddy’s and Red Lion Pub, as well as Christopher Tinker and David Price of Red Lion Pub and Three Lions Pub. Their hope is to turn the area – dubbed “Tannery Row” – into a new destination for food, drink and entertainment. “The opportunity to carry on the tradition of Trocadero, to be ‘passed the torch’ in essence, is a great honor, and I’m looking forward to the next chapter for Trocadero,” Kovacovich said. “Mike Eitel has been a mentor and colleague for years, and we’ve remained close since leaving Trocadero in 2007 to start my first business. The opportunity come back to Trocadero with Mike’s personal blessing means a lot to me.” Trocadero has been closed since Monday, but will reopen Thursday, Dec. 18 at 5 p.m., resuming the same business hours and the same menu as under the previous owners. A new menu is expected to roll out in spring 2015. As for the Lowlands Group, the move away from Trocadero comes at the same time as an expansion, as the group announced plans to grow out two new locations, one in Madison at the newly redeveloped Hilldale Mall and the other in Mequon at Mequon and Green Bay Roads. “We are constantly looking for dynamic, evolving neighborhoods, and both Mequon and Madison are natural choices for our next phase of development,” said Lowlands CEO Eric Wagner.