The Neutral Project proposes $700M development in Milwaukee

A Madison developer unveiled plans for a $700 million development in Milwaukee, which officials said might become the tallest timber building in the world and tallest in the state.

The Neutral Project was picked to redevelop the Marcus Performing Arts Center parking garage at 1001 N. Water St., according to a news release from the City of Milwaukee Department of City Development. The city chose the developer in a request for proposals for what will happen to the parking structure next. The city has been trying to redevelop the parcel for more than a decade.

“Designed by MGA | Michael Green Architecture, a global leader in mass timber buildings, the project could include the tallest mass timber (building) in the world and the tallest building in Wisconsin,” officials said in a statement.

The developer proposed to build multiple mixed-use buildings with a total investment of over $700 million, officials said. The project will span several phases and will include:

• Up to 750 residential units
• 190,000 square feet of office space
• 40,000 square feet of retail space
• 300 hotel rooms
• 1,100 structured parking spaces
• Public plazas and walkways

The project team includes MGA, HGA, Gehl People, C.D. Smith and Thornton Thomasetti.

Milwaukee Mayor Cavalier Johnson said the project ties in with his goal to increase the city’s population to one million.

“To do that, we need to be aggressive and reach for new heights,” Johnson said in a statement. “This project will help us do just that, literally aiming to set local and global records, but just as importantly add density and activity to an underutilized city-controlled parcel in downtown Milwaukee. It also represents a forward-thinking Milwaukee, open to outside investment and ideas, and I thank The Neutral Project for their confidence in Milwaukee’s future,” he added.

In 2023 the city and theater sent out a request for proposals seeking developers to rebuild on the property, officials said. The Neutral Project was picked as best for meeting the goals and criteria for the RFP. The parcel was identified in the latest downtown plan, approved in 2023, for a catalytic project at the parking garage.

In response to the city’s request for proposals, The Neutral Project proposed a building with up to 55 stories and 613 feet. That’s taller than the U.S. Bank Building, the current tallest building in Wisconsin, which is more than 40 stories.

Neutral Project officials shared in the response plans for three residential buildings, a hotel with short-term rental (not AirbnB) space and an office space.

“The design of this project encapsulates the goals set out in the Connec+ing MKE Downtown Plan 2040 and the RFP issued by the City by bringing a landmark mixed-use building to the site, activating the Water Street corridor, and enhancing pedestrian connections between the east and west sides of the Milwaukee River, including a reimagined Red Arrow Park and Pere Marquette Park,” said Lafayette Crump, commissioner of the Department of City Development.

Daniel Glaessl and Nate Helbach, the CPO and CEO of The Neutral Project respectively, said they were thrilled to carry on exclusive negotiations with the city.

“We’ve meticulously assembled a team of international design leaders paired with local specialist consultants,” the two said in a joint statement. “This collaborative approach ensures we deliver an exceptional community-focused urban experience for this pivotal site in downtown Milwaukee. Our focus on vibrant urban activation aligns seamlessly with achieving internationally recognized sustainability certification Passive House and ILFI core, resulting in a low-carbon building. This project has the potential to position the Marcus Center as a groundbreaking model for sustainable development, not just in the United States, but on a global scale,” they added.

In February, The Neutral Project team members said they shared with the city initial plans for a 50-story building.

The city is proposing a one-year exclusive right to negotiation with possible extensions. If approved by the Common Council, it will give the developer time to secure tenants, secure financing and finalize project plans.

Meanwhile, crews with C.D. Smith are starting to drive test piles for The Edison, a more than 30-story timber building in downtown Milwaukee.